California employment case index

89 cases

Doss v. Tesla, Inc.

June 11, 2026

A Tesla yard hostler who moved 53-foot trailers of out-of-state auto parts around the Fremont factory — never crossing a state line — sued for wage-and-hour violations, and Tesla moved to compel individual arbitration. In the published portion of its opinion, the First District holds yard hostlers are FAA section 1 transportation workers exempt from arbitration, and clarifies which wage claims Labor Code section 229 keeps in court.

Quinteros v. Harbor Distributing, LLC

June 11, 2026

A firm filed a wage-and-hour class action duplicating one it had already filed elsewhere, then opposed a stay with a brief — drafted by a contract attorney using generative AI — full of nonexistent citations and at least eight fabricated quotations. The First District affirms $6,000 in section 128.7 sanctions: counsel of record bear ultimate responsibility for what they sign, and the duty to verify authority cannot be delegated to any form of technology.

In re Orr (Orr v. United States District Court)

June 9, 2026

A former UPS seasonal driver sued for wage violations; the district court compelled arbitration of her individual claims but refused to decide whether the FAA or state arbitration law governed, reasoning the result was the same. The Ninth Circuit grants a writ of mandamus: under New Prime, the court — not an arbitrator — must decide whether the FAA section 1 transportation-worker exclusion applies before compelling arbitration.

Cortina v. North American Title Company

May 29, 2026

After 19 years of litigation, a bifurcated bench trial produced a $43 million judgment for ~400 escrow workers who claimed they were misclassified as exempt. The Fifth District reverses on two independent grounds: the trial court could not delegate the entire damages phase to a private referee without the parties’ consent, and the liability-phase trial plan violated Duran by using representative sampling to prove classwide liability while barring the employer from contesting individual exempt status.

Toothman v. Redwood Toxicology Laboratory, Inc.

May 5, 2026

A staffing agency hired a worker under an arbitration agreement and placed him at a client; when the placement ended, the client hired him directly, and he later sued the client over that direct-employment period. The First District affirms denial of arbitration: the client was not a party or “affiliate” of the agency, the claims fell outside the agreement’s scope, and the worker was not equitably estopped — a nonsignatory cannot simply borrow a staffing agency’s arbitration clause.

Vela v. Harbor Rail Services of California, Inc.

May 1, 2026

A railcar repairman who inspected and repaired freight cars taken out of service in a rail yard brought a wage-and-hour class action and argued his arbitration agreement was exempt as a transportation worker’s contract. The Second District disagrees: he is neither a “railroad employee” nor a “transportation worker” under FAA section 1, because repairing decommissioned cars is too far removed from actual transportation — so his arbitration agreement and class waiver are enforceable.

Stoker v. Blue Origin: Pervasive Unconscionability and the Refusal to Sever (post-Ramirez)

April 24, 2026

A terminated Blue Origin executive opposed arbitration of his FEHA and related claims. The Court of Appeal affirmed the denial of arbitration on unconscionability grounds — expressly declining to reach the federal EFAA — holding the adhesive agreement substantively unconscionable in at least four ways: overbreadth, lack of mutuality, a predispute jury-trial waiver, and a representative/PAGA waiver. Applying Ramirez v. Charter Communications, the court refused to sever, because curing the overbreadth and non-mutuality would require impermissible reformation and would reward one-sided drafting; severance “would not further the interests of justice.”

Martinez v. Sierra Lifestar, Inc.

April 21, 2026

An EMT sought to certify a 135-worker class alleging the employer left nondiscretionary “EMS Bonuses” out of the regular rate, underpaying overtime and premiums. The Fifth District reverses the denial of class certification: the employer’s gift/discretion defense applied to every EMS Bonus, so it was not a defense “unique” to the named plaintiff.

Santana v. Studebaker Health Care Center, LLC

April 7, 2026

Studebaker made a new employee sign three onboarding arbitration documents; the trial court found their “conflicts” showed no valid agreement and denied arbitration. The Second District reverses and compels arbitration — ambiguities must be reconciled to give effect to the intent to arbitrate, the agreement was not unconscionable, and an inconsistent wholesale PAGA waiver should have been severed.

O’Dell v. Aya Healthcare Services, Inc.

April 1, 2026

After two of four bellwether arbitrators found a travel-nursing agency’s arbitration agreements invalid, a district court used non-mutual offensive collateral estoppel to void 255 other employees’ separate agreements. The Ninth Circuit reverses: the FAA guarantees individualized, one-on-one proceedings, and forbids using other arbitrators’ rulings to invalidate other parties’ agreements wholesale.

Guardian Storage Centers, LLC v. Simpson

March 24, 2026

A terminated COO forwarded her employer’s e-mails — some attorney-client privileged — to her personal account and handed them to her lawyers for her wrongful-termination and harassment cross-claims. The Fourth District holds the State Fund rule on handling privileged materials applies even to such intentional, unauthorized disclosures, and reverses the denial of the employer’s motion to disqualify counsel.

Paknad v. Superior Court

March 24, 2026

Intuitive Surgical defended a harassment suit by pointing to the adequacy of its attorney-led investigation, then tried to withhold the investigator’s findings as work product. The Sixth District grants the employee a writ: putting the investigation’s adequacy at issue waives privilege and even core work product over the investigator’s factual findings and anything bearing on the investigation’s scope and adequacy.

Pechkis v. Trustees of the California State University

March 24, 2026

Two Chico State physics professors sued the CSU Trustees for retaliation, alleging a sham investigation and sabotage of their move to a new university after they reported harassment. The Trustees moved to strike the claims under the anti-SLAPP statute as “based in part” on protected speech. The Third District affirms denial: a movant must analyze each claim element-by-element and identify which acts are protected — “based in part” is not enough.

Ehrenkranz v. San Francisco Zen Center

March 2, 2026

A former Work Practice Apprentice at the San Francisco Zen Center won a wage award, but the trial court held the First Amendment’s ministerial exception barred his claims. The First District reverses, adopting its companion case Lorenzo: the exception bars only claims that require resolving ecclesiastical questions, and the Center showed none. NOTE: the controlling ministerial-exception issue is now before the California Supreme Court in Lorenzo (S294565), so this opinion is citable for persuasive value only.

Ratha v. Rubicon Resources, LLC

February 20, 2026

Cambodian villagers forced to work at Thai seafood factories sued a U.S. marketer under the trafficking civil-remedy statute; their case was dismissed because the statute then reached only those who succeeded in benefiting, not those who attempted to. After Congress amended the law, the en banc Ninth Circuit holds the clarifying amendment retroactive — and that Landgraf governs all such amendments, overruling the “clarifying amendment” exception — reviving the claims.

Fuentes v. Empire Nissan, Inc.: Illegibility, Unconscionability, and No Presumption for Arbitration

February 2, 2026

The California Supreme Court holds that illegible, one-sided arbitration print is procedural (not substantive) unconscionability — and that no presumption favors arbitration.

Avery v. TEKsystems, Inc.

January 28, 2026

Twenty-two months into a wage-and-hour class action, TEKsystems rolled out a new mandatory arbitration agreement to the recruiter class members and moved to compel arbitration. The Ninth Circuit affirms denial of that motion: Rule 23(d) lets a district court refuse to enforce an agreement obtained through misleading, mid-litigation communications that threaten the fairness of the class action — the FAA gives arbitration no special protection.

De Paolo v. Rosales

December 22, 2025

A resident manager whose apartment came with the job refused to leave after she was terminated. The Appellate Division affirms an unlawful detainer judgment: housing provided as part of employment compensation is not a protected tenancy, the former manager became a tenant at sufferance or licensee outside the Tenant Protection Act, and her retaliatory-eviction defense failed for lack of evidence.

County of Los Angeles v. Niblett

October 31, 2025

A fire-department mechanic repeatedly confronted management and then alluded to an incident in which a firefighter fatally shot another firefighter. The Second District affirms a three-year workplace violence restraining order under section 527.8: the veiled reference was a credible, implied threat outside the First Amendment, and the order’s firearm restriction survives Second Amendment review under Rahimi.

Iloff v. LaPaille: The Good-Faith Defense to Liquidated Damages

August 21, 2025

An employer must prove a reasonable, good-faith attempt to comply before escaping liquidated damages under Labor Code section 1194.2.

Hohenshelt v. Superior Court: §1281.98 Arbitration-Fee Deadlines Survive FAA Preemption — Without Automatic Forfeiture

August 11, 2025

The California Supreme Court holds that CCP §1281.98's arbitration-fee-payment forfeiture rule is not preempted by the FAA — but, rejecting the rigid automatic-forfeiture reading, only where a late payment is willful, grossly negligent, or fraudulent rather than a good-faith mistake or excusable neglect.

Velarde v. Monroe Operations: HR Misrepresentations as Unconscionability

June 6, 2025

A newly hired care coordinator was pressured to sign an arbitration agreement amid a stack of 31 onboarding documents on her first day. When she said she did not understand it, the HR manager assured her it would let the company resolve disputes cheaply and without lawyers — untrue, since the agreement imposed adversarial federal-rules arbitration with each side bearing its own fees. The Court of Appeal affirmed the denial of arbitration: the oral misrepresentation, contradicting the written terms, made the agreement substantively unconscionable because it defeated the employee's reasonable expectations. Intent to mislead was not required — the court focused on effect, not intent.

Bradsbery v. Vicar Operating: Prospective, Revocable Meal-Period Waivers Are Valid

April 21, 2025

Two veterinary workers signed a standing written waiver of their meal break for shifts of six hours or less — revocable at any time — then sued years later, arguing meal periods can be waived only shift by shift after the right accrues. Division Seven disagreed: section 512 and the wage orders are silent on timing and form, and eighty years of IWC history treats written prospective waivers as employee protection, not evasion. But the holding is expressly conditional: the court reserved unconscionable, coerced, unknowing, and irrevocable waivers, and oral prospective waivers entirely. Bradsbery is a safe harbor for clean waiver programs — and a litigation roadmap against defective ones.

Vo v. Technology Credit Union: JAMS Rule 17, Nonparty Discovery, and the Split with Aixtron

February 4, 2025

A terminated employee resisted arbitration of his FEHA claims, arguing that under Aixtron the arbitrator could not compel prehearing third-party discovery. The Sixth District reversed the denial of arbitration: applying Ramirez’s five discovery factors and construing the clause to preserve validity, it held that JAMS Rule 17 (2014) gives the arbitrator authority to expand nonparty discovery when necessary, so the agreement was not substantively unconscionable. The court disapproved Aixtron to the extent it read an arbitrator’s authority narrowly — creating an intra-district split — and noted that Senate Bill 940 now supplies CAA third-party discovery by default for current agreements.

Arzate v. ACE American: Who Must Initiate Arbitration After an Order Compelling

January 27, 2025

After a court compelled arbitration of a wage-and-hour class action, neither side filed a demand, and the trial court lifted the stay on the theory that the employer — which had moved to compel — waived arbitration by not commencing it. The Court of Appeal reversed: reading the agreement as a whole, the ‘party who wants to start the Arbitration Procedure’ is the claimant asserting a legal claim, so the employees who agreed to ‘submit’ their claims had to file the demand; the employer’s inaction was neither a breach nor a waiver. The court expressly declined to reach the separate arbitration-fee-default statute (Code Civ. Proc., § 1281.98).

Stone v. Alameda Health System: Public-Entity Employers Are Not Subject to PAGA (or Most Labor Code Wage Rules)

August 15, 2024

Two Highland Hospital workers sued the public hospital authority running Alameda County’s medical facilities for meal-and-rest violations, unpaid wages, and PAGA penalties. A unanimous Supreme Court ended the case at the definitions: Labor Code section 18’s “person” — the term that controls who is an “employer” under the wage order and who can be penalized under PAGA — affirmatively excludes public entities. Absent express words bringing the government in, break rules and PAGA penalties stop at the public-sector line. The court disapproved Sargent’s contrary rule for statutes carrying their own penalties, declined to decide whether Government Code section 818 independently bars such penalties, and reserved the effect of the 2024 PAGA reform.

Quach v. California Commerce Club: California Abrogates the Arbitration-Specific “Prejudice” Requirement for Waiver

July 25, 2024

Quach v. California Commerce Club, Inc.California abandons its arbitration-specific rule requiring proof of prejudice to establish that a party waived the right to compel arbitration; waiver is now governed by the same general contract principles — proof by clear and convincing evidence of an intentional relinquishment — that apply to any other contractual right.Quach v. […]

Castellanos v. State of California: The Supreme Court Upholds Proposition 22 and Holds the Legislature’s Article XIV Workers’-Compensation Power Is Not Exclusive of the Initiative

July 25, 2024

The California Supreme Court unanimously upholds Proposition 22 (Bus. & Prof. Code, § 7451), holding that the Legislature’s “plenary” and “unlimited” authority over workers’ compensation under article XIV, section 4 is not exclusive of the people’s reserved initiative power — while expressly reserving the harder questions about Proposition 22’s seven-eighths amendment rule.

Ramirez v. Charter Communications: Unconscionability and the Mandatory Qualitative Severance Analysis

July 15, 2024

Charter’s mandatory arbitration agreement directed employees’ claims into arbitration while carving out the claims Charter itself would bring, compressed FEHA filing to the one-year administrative window, and made anyone who unsuccessfully resisted arbitration pay the fees incurred to compel it. The Supreme Court held all three terms substantively unconscionable — but validated the four-deposition discovery cap, disapproving the line of cases that judged discovery limits by a particular plaintiff’s later needs. On remedy, the court rejected clause-counting: severance is a qualitative, totality inquiry under Armendariz, and the refusal to enforce was reversed and remanded for that analysis.

Cook v. USC: Infinite Duration, All-Claims Scope — Unconscionable and Unseverable

May 24, 2024

USC required a staff employee to sign an arbitration agreement reaching ‘all claims, whether or not arising out of’ her employment, against USC and a broad web of affiliated persons, surviving her employment indefinitely and revocable only by the university president. The Court of Appeal affirmed the denial of arbitration: the agreement was substantively unconscionable for three independent reasons — overbroad scope, infinite duration, and lack of mutuality — and the trial court reasonably refused to sever, because curing it would require rewriting the plain language and would hand USC a windfall. Unconscionability is judged at the time of contracting, so the employer could not save the agreement by noting the plaintiff’s actual claims were employment-related.

Smith v. Spizzirri: FAA § 3 Requires a Stay, Not Dismissal

May 16, 2024

Delivery drivers sued for wage and misclassification violations; their employer moved to compel arbitration and dismiss. A unanimous Supreme Court held that FAA § 3 gives a district court no discretion to dismiss a suit it sends to arbitration when a party requests a stay — ‘shall’ means ‘shall’ and ‘stay’ means ‘stay.’ Staying rather than dismissing preserves the parties’ return ticket to court if arbitration breaks down, a point with real stakes for employees whose employers later default on arbitration fees.

Naranjo v. Spectrum Security Services (Naranjo II): A Good-Faith Belief in Compliance Defeats Section 226 and Section 203 Penalties

May 6, 2024

In Naranjo II (2024) 15 Cal.5th 1056, the California Supreme Court holds that an employer’s objectively reasonable, good-faith belief that its wage statements complied with the law defeats both Labor Code § 226 penalties (no “knowing and intentional” violation) and § 203 waiting-time penalties (no “willful” failure) — harmonizing the two penalty statutes around a common good-faith defense.

Bissonnette v. LePage Bakeries Park St.: The FAA § 1 Exemption Follows the Work, Not the Industry

April 12, 2024

A unanimous Supreme Court held that the Federal Arbitration Act’s § 1 exemption for transportation workers turns on what a worker does, not the industry the employer occupies. Bakery-goods delivery drivers who sued for wage violations therefore could not be forced into arbitration merely because their employer sells bread rather than transportation. The decision resolves a circuit split and completes the § 1 line running from Circuit City through Saxon, while expressly leaving open whether these particular distributors qualify as transportation workers at all.

Huerta v. CSI Electrical Contractors: “Hours Worked” at the Security Gate, the Commute, and On-Premises Meal Periods

March 25, 2024

A solar-project electrician queued unpaid at a security gate while guards inspected vehicles, drove miles of access road under strict site rules, and ate lunch confined to a designated area under a CBA calling meal periods “unpaid.” Answering the Ninth Circuit, a unanimous Supreme Court held the exit procedure is compensable “hours worked”; the gate-to-lot drive is compensable only as “employer-mandated travel,” and only if the gate is the first location required for a reason beyond site access; and no collective bargaining agreement can waive the minimum wage for a meal period during which the employer’s confinement forecloses otherwise feasible personal activities.

Estrada v. Royalty Carpet Mills: PAGA Claims Cannot Be Struck as “Unmanageable”

January 18, 2024

Estrada v. Royalty Carpet Mills, Inc. (2024) 15 Cal.5th 582 holds that trial courts lack inherent authority to strike a PAGA claim as unmanageable, even if it is complex or time-intensive. Manageability is a class-action requirement that does not apply to PAGA; complexity must be handled through ordinary case-management tools, not dismissal.

Adolph v. Uber Technologies: A PAGA Plaintiff Keeps Standing for Representative Claims After Individual Arbitration

July 17, 2023

Adolph v. Uber Technologies, Inc. (2023) 14 Cal.5th 1104 holds that a PAGA plaintiff whose individual claims are compelled to arbitration retains standing as an “aggrieved employee” to litigate the non-individual representative claims in court — California’s answer to the standing question left open by Viking River.

Cvejic v. Skyview Capital, LLC

June 28, 2023

Analysis · Key Case Cvejic v. Skyview Capital, LLC (2023) 92 Cal.App.5th 1073 Court of Appeal, Second Appellate District, Division Eight · Docket No. B318880 · Decided June 28, 2023 Verify before relying. A summary and analysis as of its publication date — not legal advice, and not a representation that the decision remains good […]

Westmoreland v. Kindercare: The PAGA-Waiver Poison Pill

April 24, 2023

Kindercare’s arbitration agreement contained a “poison pill”: a clause providing that the whole agreement is invalid if its class/representative-action waiver is unenforceable. Because a wholesale predispute waiver of representative PAGA claims cannot be enforced after Iskanian and Viking River, the Court of Appeal held the poison pill voided the entire agreement — sending every claim, including the employee’s individual claims, to court. Had Kindercare omitted the poison pill, Viking River would have let it compel the individual claims; its own drafting foreclosed that path. The drafter was held to the all-or-nothing clause it wrote.

Chamber of Commerce of the United States v. Bonta

February 15, 2023

The Ninth Circuit held the Federal Arbitration Act preempts AB 51 (Labor Code § 432.6), California's attempt to ban mandatory employment arbitration, because a state rule that burdens the formation of arbitration agreements stands as an obstacle to the FAA.

Camp v. Home Depot: Is Neutral Time-Rounding Still Lawful When Actual Time Is Captured? (pending review)

October 24, 2022

Home Depot’s Kronos system recorded Delmer Camp’s time to the minute — then quarter-hour rounding paid him for 470 fewer minutes than his own timecards showed. The Sixth District reversed summary judgment: under Troester and Donohue, an employer that can capture and has captured exact worktime must pay for all of it, and no California text authorizes rounding that underpays an identifiable employee. The panel invited the Supreme Court to decide whether See’s Candy neutral rounding survives at all — and the Court granted review (S277518), where the case remains pending. Cite it as persuasive only, with the review-granted parenthetical, and re-verify status before filing.

Viking River Cruises, Inc. v. Moriana

June 15, 2022

The FAA preempts Iskanian to the extent it bars division of a PAGA action and prevents arbitration of an employee’s individual PAGA claim; an employer may compel the individual PAGA claim to arbitration. (The Supreme Court further opined that, under its reading of California law, the plaintiff would then lack standing…

Morgan v. Sundance, Inc.

May 23, 2022

Morgan v. Sundance, Inc. A court may not condition waiver of the right to arbitrate on a showing that the opposing party was prejudiced; the FAA’s “policy favoring arbitration” places arbitration agreements on equal footing with other contracts and does not authorize arbitration-specific procedural rules. Morgan v. Sundance, Inc. (2022) 596 U.S. 411 Parallel citations: […]

Naranjo v. Spectrum Security Services: Missed-Break Premium Pay Is “Wages” Supporting §203 and §226 Penalties

May 23, 2022

Naranjo v. Spectrum Security Services, Inc. (Naranjo I) Premium pay owed for missed meal and rest breaks under Labor Code section 226.7 constitutes “wages,” so it must be reported on wage statements under section 226 and is subject to waiting-time penalties under section 203 when not timely paid at separation. Naranjo v. Spectrum Security Services, […]

Ferra v. Loews Hollywood Hotel: Meal and Rest Premiums Must Be Paid at the Regular Rate of Compensation

July 15, 2021

Ferra v. Loews Hollywood Hotel, LLC (2021) 11 Cal.5th 858 holds that the meal/rest premium under Labor Code § 226.7(c) must be paid at the “regular rate of compensation,” which is synonymous with the overtime “regular rate of pay” and includes all nondiscretionary payments — not just base hourly wages. The holding is retroactive.

Donohue v. AMN Services: No Rounding of Meal-Period Punches, and a Rebuttable Presumption From Time Records

February 25, 2021

Donohue v. AMN Services, LLC (2021) 11 Cal.5th 58 holds that employers may not round meal-period time punches, and that time records showing short, late, or missed meal periods raise a rebuttable presumption of a violation — usable even at summary judgment.

Vazquez v. Jan-Pro Franchising: The Dynamex ABC Test Applies Retroactively

January 14, 2021

Vazquez v. Jan-Pro Franchising International, Inc. (2021) 10 Cal.5th 944 holds that the ABC test adopted in Dynamex applies retroactively — to all cases not yet final when Dynamex was decided — exposing pre-2018 wage-order conduct to the new worker-classification standard.

People v. Uber Technologies: Rideshare Drivers Are Likely Employees Under Prong B of the ABC Test

October 22, 2020

The Court of Appeal affirms a statewide preliminary injunction against Uber and Lyft, holding the People likely to prevail under prong B of the ABC test (Lab. Code, § 2775) — rideshare driving is within the usual course of the companies’ business — and rejecting the “technology platform” defense as a false dichotomy. (Predates Proposition 22; see Castellanos.)

Frlekin v. Apple Inc.: Mandatory Exit-Search Time Is Compensable “Hours Worked”

February 13, 2020

Frlekin v. Apple Inc. (2020) 8 Cal.5th 1038 holds that time spent waiting for and undergoing mandatory exit bag-and-device searches is compensable “hours worked” under the control clause — even after clocking out, and even though employees could have avoided a search by not bringing a bag. It applies Morillion and rejects the “optional” defense.

OTO, L.L.C. v. Kho

August 29, 2019

The agreement was both procedurally and substantively unconscionable and therefore unenforceable. The manner of presentation — a take-it-or-leave-it document thrust at a low-wage worker for immediate signature, in dense legalese he was unlikely to understand — was highly oppressive and surprising, and the arbitral…

Ward v. Tilly’s: Reporting-Time Pay for On-Call / Call-In Shifts

February 4, 2019

Tilly’s required retail workers to phone the store exactly two hours before every on-call shift — under threat of written discipline — and paid nothing if the answer was ‘don’t come in.’ Division Three held, 2–1, that this triggers Wage Order 7 reporting-time pay: ‘reporting for work’ means presenting oneself as ordered, and the employer’s own directions define the manner, whether that is walking through the door, logging on remotely, or making a mandatory call. The holding is deliberately tied to the two-hour call-in regime, the retroactivity question was expressly left open, and Justice Egerton’s partial dissent — built on 18,000 pages of IWC history — supplies the employer playbook. Review was denied; Ward remains the leading California authority on call-in scheduling.

Troester v. Starbucks Corp.: California Rejects the Federal De Minimis Rule for Off-the-Clock Work

July 26, 2018

Troester v. Starbucks Corp. (2018) 5 Cal.5th 829 holds that California has not adopted the federal de minimis doctrine: an employer that requires small but regularly recurring off-the-clock work — here, several minutes of closing tasks each shift — must pay for that time and cannot invoke de minimis to avoid it.

Wassmann v. South Orange County CCD: The Continuing-Violation Doctrine and Permanence at Termination

June 12, 2018

In Wassmann v. South Orange County Community College Dist. (2018) 24 Cal.App.5th 825, the Court of Appeal affirmed summary judgment against a dismissed community-college librarian, holding her FEHA discrimination and harassment claims time-barred. Applying the three-part continuing-violation test from Richards v. CH2M Hill, the court held the doctrine could not save the claims because the pre- and post-limitations acts were “not at all similar” and the employer’s conduct “acquired a degree of permanence” when her employment was terminated — and post-dismissal acts of a neutral administrative law judge could not be imputed to the employer.

Epic Systems Corp. v. Lewis

May 21, 2018

Arbitration agreements providing for individualized proceedings — including class- and collective-action waivers in the employment context — are enforceable under the FAA, and the NLRA does not override the FAA or render such agreements unlawful; courts must enforce the agreements according to their terms.

Dynamex Operations West, Inc. v. Superior Court: California Adopts the ABC Test for Worker Classification

April 30, 2018

Dynamex Operations West, Inc. v. Superior Court (2018) 4 Cal.5th 903 adopts the “ABC test” for California wage-order claims: a worker is presumed an employee, and the hiring entity must prove all three prongs — freedom from control, work outside the usual course of business, and an independently established trade — to establish independent-contractor status.

Alvarado v. Dart Container Corp.

March 5, 2018

For a flat-sum bonus like the attendance bonus here, the bonus is divided by the number of non-overtime (straight-time) hours the employee actually worked — not by total hours including overtime — to determine the per-hour value added to the regular rate; this yields a higher overtime rate, more protective than the…

McGill v. Citibank, N.A.

April 6, 2017

A provision in a predispute arbitration agreement that waives the right to seek public injunctive relief in any forum is contrary to California public policy and unenforceable (the “McGill rule”); and because that rule applies to contracts generally and does not single out arbitration, the FAA does not preempt it.

Augustus v. ABM Security Services: Rest Periods Must Be Off-Duty and Off-Call

December 22, 2016

Augustus v. ABM Security Services, Inc. (2016) 2 Cal.5th 257 holds that a compliant rest period must be free of both duties and employer control: an employer may not require employees to remain “on call” during a rest break, even if interruptions rarely occur.

Richey v. AutoNation, Inc.

January 29, 2015

The arbitrator’s award was upheld. Under the narrow standard of review governing arbitration awards, the court declined to decide whether the “honest belief” defense applies to CFRA claims; even assuming the arbitrator erred in invoking it, the error did not deprive the employee of an unwaivable statutory right, so…

Mendiola v. CPS Security Solutions: On-Call Time Is Hours Worked, and Sleep Time Cannot Be Excluded

January 8, 2015

Mendiola v. CPS Security Solutions, Inc. (2015) 60 Cal.4th 833 holds that security guards’ required on-call time at their worksites was compensable “hours worked” under the control clause, and that California’s Wage Order 4 — unlike federal law — does not permit excluding sleep time from compensable hours on a 24-hour shift.

Peabody v. Time Warner Cable, Inc.

July 14, 2014

An employer satisfies the minimum-earnings prong of the commissioned-employee exemption only in those pay periods in which it actually pays the required minimum earnings; it may not attribute commission wages paid in one pay period to other pay periods to manufacture compliance (59 Cal.4th at p. 664).

Iskanian v. CLS Transportation: PAGA Waivers Unenforceable, Class Waivers Enforceable

June 23, 2014

Iskanian v. CLS Transportation (2014) 59 Cal.4th 348 holds that class-action waivers in employment arbitration agreements are enforceable after Concepcion (abrogating Gentry), but a predispute waiver of a representative PAGA action is contrary to public policy and not preempted by the FAA, because a PAGA claim belongs to the state.

Kim v. Konad USA Distribution: FEHA Exhaustion Is Not Jurisdictional — and Can Be Forfeited

June 12, 2014

In Kim v. Konad USA Distribution, Inc. (2014) 226 Cal.App.4th 1336, the Court of Appeal affirmed a $60,000 bench-trial judgment for a sexually harassed employee, holding that FEHA’s administrative-exhaustion requirement is “jurisdictional” only in the loose, prudential sense and does not affect the trial court’s fundamental subject matter jurisdiction. Because the defendants waited until after the case was submitted to assert non-exhaustion, they forfeited the defense; and because exhaustion is not truly jurisdictional, the court could consider post-trial materials confirming the plaintiff had in fact exhausted. The court also held a harassment claim lies against an employer of any size.

Duran v. U.S. Bank: Statistical Sampling, Trial Plans, and the Due-Process Right to Litigate Defenses

May 29, 2014

Duran v. U.S. Bank National Assn. (2014) 59 Cal.4th 1 holds that a class-action trial plan using statistical or representative proof must still let the defendant litigate its affirmative defenses. A plan that extrapolated liability for 260 employees from a flawed 21-person sample and barred defense evidence violated due process.

Sonic-Calabasas A, Inc. v. Moreno

October 17, 2013

Concepcion preempts a categorical, arbitration-specific rule that a Berman-hearing waiver is per se unconscionable; but generally applicable unconscionability doctrine survives, and an arbitration agreement remains unenforceable if it is unreasonably one-sided. The court concluded this agreement’s waiver was markedly…

Acuna v. San Diego Gas & Electric: When the Limitations Clock Starts on a FEHA Termination

June 19, 2013

In Acuna v. San Diego Gas & Electric Co. (2013) 217 Cal.App.4th 1402, reviewing a sustained demurrer, the Court of Appeal held the plaintiff’s FEHA disability- and race-discrimination claims time-barred but reversed on her retaliation and wrongful-termination claims, holding that the section 12960 clock for a discharge runs from the actual termination — not from when the retaliatory motive arose — and that the employer, which controlled the termination date, controlled the accrual trigger. On the accommodation claims, continuing-violation tolling ended once the employer’s refusal reached a degree of permanence.

Bluford v. Safeway, Inc.

May 8, 2013

Rest periods must be separately compensated and cannot be folded into a piece-rate or activity-based pay formula; because Safeway’s uniform pay system did not separately pay for rest periods, common issues predominated and the class should have been certified (216 Cal.App.4th at p. 866).

Gonzalez v. Downtown LA Motors, LP

March 6, 2013

Piece-rate employees are entitled to separate hourly compensation for time spent waiting for repair work or performing other nonrepair tasks directed by the employer during their work shifts; piece-rate earnings cannot be averaged across that nonproductive time to satisfy the minimum-wage obligation (215 Cal.App.4th…

Kirby v. Immoos Fire Protection, Inc.

April 30, 2012

Neither Labor Code section 1194 nor section 218.5 authorizes an award of attorney fees to a party that prevails on a section 226.7 claim; such claims are not actions for the nonpayment of minimum wages or overtime (§1194) and are not the kind of nonpayment-of-wages action that triggers §218.5 fee-shifting, so each…

Brinker Restaurant Corp. v. Superior Court: Provide, Not Ensure — California’s Governing Meal-and-Rest and Class-Certification Decision

April 12, 2012

Brinker Restaurant Corp. v. Superior Court (2012) 53 Cal.4th 1004 is California’s foundational meal-and-rest decision: an employer must provide a duty-free meal period but need not ensure no work is done; it sets the meal-timing and rest-period rules and confirms that courts may resolve merits questions enmeshed with class certification.

Harris v. Superior Court

December 29, 2011

Courts may not treat the administrative/production worker dichotomy as a dispositive test for the administrative exemption; the exemption must be analyzed under the language of the applicable IWC wage order and governing regulations, considering the actual work performed, rather than a rigid dichotomy.

AT&T Mobility LLC v. Concepcion

April 27, 2011

The FAA preempts the Discover Bank rule. A state rule that conditions the enforceability of an arbitration agreement on the availability of classwide arbitration interferes with the fundamental attributes of arbitration and stands as an obstacle to the FAA’s objective of enforcing arbitration agreements according to…

Pineda v. Bank of America, N.A.

November 18, 2010

Section 203(b) contains a single, three-year limitations period governing all actions for section 203 penalties, regardless of whether the penalty claim is accompanied by a claim for unpaid final wages; and the penalties may be recovered even though the underlying wages were eventually paid.

Martinez v. Combs: The Wage Orders Define “Employer” — Control, Suffer or Permit, or Common-Law Engagement

May 20, 2010

Martinez v. Combs (2010) 49 Cal.4th 35 holds that the IWC wage orders’ own definitions govern who is an “employer” for minimum-wage claims: to “employ” means (a) to exercise control over wages, hours, or working conditions, (b) to suffer or permit to work, or (c) to engage in a common-law employment relationship. The produce merchants were not the workers’ employers.

Nazir v. United Airlines, Inc.

October 9, 2009

Summary judgment was improperly granted on the harassment and retaliation claims because triable issues of fact existed; the decision is notable for its strong criticism of the overuse and abuse of summary judgment in employment cases, for its treatment of the parties’ voluminous (and often meritless) evidentiary…

Dominguez v. Washington Mutual Bank: The Continuing-Violation Doctrine and FEHA Limitations Accrual

November 21, 2008

Reversing summary judgment, the Second District held that a lesbian mail-services employee raised triable issues on whether her FEHA administrative complaint was timely under the continuing-violation doctrine, even though her harasser stopped his explicit sexual-orientation slurs over a year before she filed. Applying Richards v. CH2M Hill, the court held the harasser's later, facially neutral work-sabotage campaign could be “similar in kind” to the slurs and that “permanence” turns on when the harassment stops, the employee resigns, or protest becomes futile — not on when the offensive words cease.

Gentry v. Superior Court

August 30, 2007

A class-action waiver in an employment arbitration agreement may be unenforceable where class arbitration would be a significantly more effective way to vindicate employees’ unwaivable statutory rights (such as overtime), considering factors like the modest size of individual recoveries, the risk of retaliation, and…

Murphy v. Kenneth Cole Productions, Inc.

April 16, 2007

The section 226.7 meal/rest payment is a wage (premium pay), not a penalty, and is therefore governed by the three-year statute of limitations applicable to wage claims rather than the one-year period for penalties.

Smith v. Superior Court (L’Oreal)

July 10, 2006

“Discharge” under sections 201 and 203 includes not only firing but also releasing an employee upon completion of the particular job assignment or time duration for which he or she was hired; final wages are then immediately due, and a willful failure to pay triggers waiting-time penalties.

Armenta v. Osmose, Inc.

December 29, 2005

California does not permit wage averaging: the minimum-wage standard applies to each hour worked, and an employer must pay at least the minimum wage for every compensable hour; it cannot use higher pay for some hours to offset unpaid or sub-minimum hours.

Discover Bank v. Superior Court

June 27, 2005

At least some class-action waivers in consumer adhesion contracts are unconscionable under California law — the “Discover Bank rule” — where the waiver is in an adhesion contract, the disputes predictably involve small amounts of damages, and the party with superior bargaining power has carried out a scheme to cheat…

Sav-On Drug Stores v. Superior Court: Deferential Review and the Theory-of-Recovery Test for Class Certification

August 26, 2004

Sav-On Drug Stores v. Superior Court (2004) 34 Cal.4th 319 holds that wage-and-hour class certification is reviewed for abuse of discretion and turns on whether the plaintiffs’ theory of recovery is amenable to common proof — not on the existence of individual issues or the ultimate merits. The Court reinstated certification of a manager-misclassification class.

Richards v. CH2M Hill, Inc.

August 23, 2001

The continuing-violation doctrine applies to FEHA claims: an employer’s related unlawful acts are treated as a single continuing violation — and the limitations period does not begin to run — so long as the conduct is sufficiently similar and frequent and has not yet acquired a degree of permanence that should put the…

Aguilar v. Atlantic Richfield Co.

June 14, 2001

A defendant moving for summary judgment bears the burden of showing that a cause of action has no merit — that one or more elements cannot be established or that there is a complete defense — by either conclusively negating an element or showing the plaintiff does not possess, and cannot reasonably obtain, evidence to…

Morgan v. Regents of University of California: The Continuing-Violation Doctrine and the Significant-Participant Rule

November 30, 2000

An African-American electronic technician laid off in a budget cut applied for dozens of university jobs, was hired for none, and sued under the FEHA for retaliation. Affirming summary judgment, the Court of Appeal held that a string of rejections by different managers in unrelated departments is a series of isolated decisions, not a “continuing violation” — and that retaliatory remarks by HR staff who took no part in the hiring cannot establish causation, because every actual decisionmaker disclaimed knowledge of the protected grievance.

Armendariz v. Foundation Health Psychcare Services, Inc.

August 24, 2000

Mandatory employment arbitration of unwaivable statutory claims is permissible only if the agreement provides certain minimum protections — a neutral arbitrator, adequate discovery, a written award subject to limited review, all types of relief otherwise available in court, and no requirement that the employee bear…

Morillion v. Royal Packing Co.: The Two Independent Definitions of “Hours Worked” and Compensable Compulsory Travel Time

March 27, 2000

Morillion v. Royal Packing Co. (2000) 22 Cal.4th 575 holds that the wage order’s “subject to the control of an employer” and “suffered or permitted to work” clauses are independent: an employee under the employer’s control is paid even when not working. Compulsory travel on employer-mandated buses is compensable “hours worked,” and the federal Portal-to-Portal Act does not govern California law.

Ramirez v. Yosemite Water Co.

June 17, 1999

The outside-salesperson exemption is determined by a fact-specific inquiry into how the employee actually spends his or her time, not merely the employer’s job description or expectations; California uses its own quantitative standard (more than half the time engaged in outside sales) rather than importing the federal…

Tidewater Marine Western, Inc. v. Bradshaw

December 19, 1996

The DLSE’s interpretive policies constitute regulations and are void because they were not adopted under the Administrative Procedure Act (the “underground regulation” rule); nevertheless, the agency properly exercised enforcement jurisdiction, and the IWC wage orders apply to the work at issue, so the trial court…

S.G. Borello & Sons v. Department of Industrial Relations: California’s Multifactor Control Test for Independent-Contractor Status

March 23, 1989

S.G. Borello & Sons, Inc. v. Department of Industrial Relations (1989) 48 Cal.3d 341 sets California’s multifactor control test for employee vs. independent-contractor status — the right to control the manner and means of the work, plus secondary factors, applied in light of the statute’s protective purpose. It still governs the Assembly Bill 5 exemptions after Dynamex.