After nearly two decades of being defunded by California lawmakers, the controversial Industrial Welfare Commission (IWC) may be on the verge of being reinstated – but are employer concerns premature? Originally established over a century ago, the IWC was charged with adopting “Wage Orders” that created industry-specific rules and regulations. Although designed to provide flexibility and eliminate clumsy one-size-fits-all problems, many employers are fearful that a resurrected IWC could only add to your compliance obligations. What do you need to know about the latest developments – and what should you do in the meantime?
Brief History of IWC
Formed in 1913, the IWC became mired in controversy in the 1990s as it tried to repeal the eight-hour day in certain circumstances. The California Legislature stamped out this effort by codifying daily overtime in 2000 with a statewide law – but lawmakers didn’t forget the IWC’s attempts and took direct aim at it.
A few years later, lawmakers defunded the IWC in 2004 to prevent it from engaging in any further actions that Democratic leadership believed could be harmful to workers. The IWC has therefore been dormant for the last 20 years or so, with the Division of Labor Standards Enforcement (DLSE) taking on the role of updating the IWC Wage Orders on an annual basis as needed.
Budget Proposal Would Re-Fund the IWC
But California lawmakers are close to resurrecting the IWC in a very different environment than we had a few decades ago....
Foley partner Lisa Noller, Chair of the Firm’s Litigation Department, will be speaking at the American Bar Association’s Qui Tam & Civil False Claims and Healthcare Fraud Institute in Washingt...