Laura Maechtlen Quoted in Employment Law360
"Calif. Ruling Puts More Cos. At Risk For Wage Suits"

Laura Maechtlen was quoted in the June 2, 2010 Employment Law360 article, "Calif. Ruling Puts More Cos. At Risk For Wage Suits." The article reported on the Martinez v. Combs case where the California Supreme Court ruled against strawberry farm workers and held that produce merchants were not employers. According to the article, the decision adopted the Industrial Welfare Commission's (IWC) definition of "employer," under which an employer is one who exercises control over the wages, hours or working conditions of the employee; suffers or permits the employee to work; or engages the employee, thereby creating a common law employment relationship. The court examined the statutory and historical context of Labor Code Section 1194 and according to the ruling, it clearly showed that the state Legislature meant for IWC's wage orders to define the employment relationship in suits brought under that statute.

Laura noted, "While the change doesn't furnish plaintiffs with a new cause of action, plaintiffs are likely to avail themselves of the broader definition of the term 'employer' to bolster their Section 1194 claims. This could be an open door for the plaintiffs bar to walk through." She also pointed out that the recent economic downturn led many employers to take creative steps and explore alternatives to permanent hiring, a trend that could widen the pool of potential defendants that could now be targeted.