Daily Journal Quotes Rex Heinke on Differing Views of State and Federal Courts in California

Daily Journal has quoted Rex Heinke, co-head of Akin Gump’s Supreme Court and appellate practice, in the article “2018 in labor law is a tale of two court systems.” The article looks at what it describes as “an ever-growing legal gap” in California, with several worker-friendly rulings coming from state courts and pro-employer ones from the federal bench.

One issue seen at the state level, the article reports, involved the federal “de minimis” defense for not compensating small pieces of time, which a court decided did not apply to a store manager who clocked out before locking up a store as required by company policy. The de minimis doctrine appears in the federal Fair Labor Standards Act, but appears to conflict with California law.

Heinke said one California-level challenge is extant Industrial Welfare Commission rules. The agency was established more than 100 years ago and defunded by the California legislature in 2004, but its wage orders regulating the workplace remain in effect.

“I think one of the difficulties in California is that the [commission] is gone, but it left behind all these rules, and there’s no government agency around to consider changing those rules in light of changes in the economy,” said Heinke. “What it left you with was a lot of rules which are unclear and ambiguous, and if it was around, people could petition for clarification.”

“The California Supreme Court,” Heinke added, “has made it clear that if the law is ambiguous, it should be interpreted in favor of the employee. Employers have to take that reality into consideration.”

Looking ahead, Heinke stated that the divergence between state and federal courts in California presents challenges for employers in the state. He advised that they stay vigilant about the evolving landscape and the legal gaps to stay compliant and minimize exposure.