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Blue Shield Loses Tax-Exempt Status, Comes Under Scrutiny for Care1st Acquisition

April 30, 2015 |

Non-profit health insurer Blue Shield of California has come under public scrutiny for its huge cash reserves, history of large rate increases, and lack of disclosure to the taxpayers.  The California Franchise Tax Board punished Blue Shield by stripping the insurer of its tax-exempt status at the end of 2014.  Today, Blue Shield remains controversial. …

Airline Servicer Crashes in Overtime Case: Employers Cannot Define Workday to Avoid Payment of Overtime

April 24, 2015 |

Generally, employers in California are free to define their workdays and workweeks as they see fit, with at least one major caveat: they may not structure the workday or workweek in a way that systematically prevents employees from earning overtime pay. A recent case, Jakosalem v. Air Serv Corp., highlights the risks inherent in this…

State Governing Boards Face Antitrust Risk after Supreme Court Ruling in North Carolina Dentists Case

April 16, 2015 |

The U.S. Supreme Court recently agreed with the Federal Trade Commission (FTC) when it ruled North Carolina’s custom of practicing dentists serving on the state regulatory board was anticompetitive.  The decision in North Carolina State Board of Dental Examiners v. Federal Trade Commission could subject thousands of similarly structured boards to antitrust liability, and brings into…

Carlson & Jayakumar Attorneys Shut Down Manufacturing Employees’ Rest Break Lawsuit and Achieve Important Victory for Employers: Court Affirms Legality of Combined Rest Periods

March 26, 2015 |

Newport Beach, CA — March 26, 2015.  On February 23, 2015, a Los Angeles Superior Court granted a motion for summary judgment filed by aerospace metal finishing company, EME, Inc., against a class of hourly workers who claimed, among other things, that EME’s practice of combining rest breaks was per se illegal.  The court entered…

PAGA and Arbitration Agreements in California

March 6, 2015 |

Background: What is PAGA? The Private Attorney General Act of 2004, or PAGA, allows a private citizen to pursue civil penalties on behalf of the State of California Labor and Workforce Development Agency (LWDA). PAGA gives the private citizen the unique ability to act as an attorney general, as he or she has the right…

Paid Sick Leave Handbook Policies for 2015

February 7, 2015 |

Sick leave policies are important for California employers to consider as we continue in 2015. On September 10, 2014, California Governor Jerry Brown signed AB-1522 (the Healthy Workplace, Healthy Families Act of 2014), which requires virtually all California employers, regardless of size, to provide paid sick leave to their employees. In response to the law,…

Healthcare Fraud, ALCAT, and Section 655.5

February 5, 2015 |

On January 20, 2015, Louisiana chiropractor David Lee Killen pled guilty to one count of healthcare fraud for billing insurance companies for chiropractic care, equipment, and testing he never performed. Killen, owner of Back on Track Clinic in Bogalusa, LA, admitted to using the identification numbers of physicians who no longer worked for his clinics…

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