California employment case index

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…

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.

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.

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.

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…

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.

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.

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…

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.

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…