Fresno Superior Court Grants Temporary Restraining Order Delaying Deadline to File Safe Harbor Election Under California Piece Rate Law

On June 30, 2016, the judge in Fresno Superior Court presiding over the Nisei Farmers League v. California Labor and Workforce Development Agency, et al., (Case No. 16 CECG 02107) issued a temporary restraining order against the enforcement of the July 1st filing deadline of the “safe harbor” provisions of Labor Code section 226.2 (the piece rate law).  The Nisei Farmers League filed for preliminary injunctive relief and permanent declaratory and injunctive relief based on several challenges to Labor Code section 226.2, including allegations that the statute violates due process of employers for vagueness, retroactive application, and arbitrariness. 

The court ordered the California Department of Industrial Relations (“DIR”) to appear at a hearing scheduled for July 18th. Under the court’s order, the July 1st deadline to file for safe harbor with the State is extended until 10 days after the expiration of the temporary restraining order.

We will monitor this case for further developments.  If you are considering filing for safe harbor with the DIR, please contact counsel to discuss the impact of the Nisei Farmers League temporary restraining order before proceeding.

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