California employment case index

85 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.

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.

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.”

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.

Walton v. Victor Valley Community College District

March 18, 2026

A nursing student said the faculty member running her hospital clinical rotation sexually harassed her and tanked her grade when she refused him. The Fourth District holds a student in a required clinical placement is an “unpaid intern” protected by FEHA, and reverses summary judgment on standing, Government-Claims-Act notice, and deliberate indifference.

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.

Kruitbosch v. Bakersfield Recovery Services: The Employer’s Response as the Hostile Environment

September 8, 2025

A coworker’s off-site sexual advances were not work-related and not imputable to the employer — yet the Fifth District held the employee still stated a FEHA hostile-work-environment claim, because the employer’s refusal to act and its HR representative’s mocking response could independently alter the workplace in an objectively severe manner. A pleading-stage reversal that imports the Ninth Circuit’s totality-of-the-circumstances, employer-response framework (Fuller, Okonowsky) into California law.

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.

Carranza v. City of Los Angeles: § 12923, Single Incidents, and Harassment the Plaintiff Never Saw

May 23, 2025

An LAPD captain never witnessed officers passing around a fake nude photo of her and was never confronted to her face — yet the Second District affirmed a $4 million FEHA verdict, holding that her secondhand knowledge of the department-wide circulation, and the LAPD’s refusal to stop it, supplied substantial evidence of a severe or pervasive hostile work environment. A leading application of Government Code section 12923.

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).

Wawrzenski v. United Airlines — comparator evidence is for the jury: the marquee MSJ reversal on FEHA discrimination, harassment, and retaliation

October 22, 2024

Reversing summary judgment for United Airlines, the Court of Appeal held that whether three male employees with comparable social-media accounts were "similarly situated" comparators was a question for the jury, applied the continuing violation doctrine and section 12923's low bar to the harassment claim, and found a two-week complaint-to-termination gap sufficient for retaliation causation.

Bailey v. San Francisco District Attorney’s Office: A Single Racial Slur Can Be Actionable Harassment Under FEHA

July 29, 2024

The California Supreme Court holds that a coworker's single use of the N-word can be actionable harassment under the FEHA if sufficiently severe under the totality of the circumstances, and that withdrawing an employee's means of reporting harassment can be an adverse action for retaliation; summary judgment reversed.

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. […]

Okonowsky v. Garland: Off-Site Social Media and the Totality of the Workplace

July 25, 2024

The Ninth Circuit reversed summary judgment for the Bureau of Prisons, holding that a corrections lieutenant’s off-duty Instagram page targeting a prison psychologist — followed by more than a hundred coworkers — is part of the totality of the circumstances in a Title VII hostile-work-environment claim. There is no rule that only conduct inside the physical workplace counts, ‘especially in light of the ubiquity of social media,’ and the employer’s dismissive, ineffectual response can independently create a hostile environment.

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.

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.

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 […]

Sharp v. S&S Activewear: Ambient Harassment — Music, Misogyny, and the End of the “Equal Opportunity Harasser”

June 7, 2023

Eight warehouse workers alleged their employer let staff blast “sexually graphic, violently misogynistic” music for nearly two years over almost daily complaints. The Ninth Circuit vacated a Rule 12(b)(6) dismissal, holding that pervasive sexist content can create a Title VII hostile work environment even if it targets no one and offends both sexes — and that an employer’s “equal opportunity harasser” status “provides no escape hatch for liability.”

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.

Atalla v. Rite Aid: The “Acting in the Capacity of Supervisor” Limit on FEHA Strict Liability

February 24, 2023

A Rite Aid district manager sent a staff pharmacist lewd photos in a late-night, off-site text exchange that grew out of a friendship predating her employment. The Fifth District affirmed summary judgment for the employer, holding that FEHA strict liability for supervisor harassment attaches only when the supervisor acts “in the capacity of supervisor,” not where the conduct arises from a completely private relationship — and that the plaintiff, invited back after the harasser was fired, was not constructively discharged.

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.

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: […]

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…

Ortiz v. Dameron Hospital: Accent-Based Harassment and Supervisor Animus Under FEHA

June 20, 2019

In Ortiz v. Dameron Hospital Assn. (2019) 37 Cal.App.5th 568, the Third District reversed summary judgment for a hospital, holding a jury could find a national-origin and age hostile work environment where a supervisor repeatedly mocked older Filipino nurses’ accents, transferred the plaintiff to a unit she was untrained for, and falsely accused her of sleeping on the job. The supervisor’s animus was attributable to the employer under Government Code section 12926, subdivision (d).

Caldera v. Department of Corrections & Rehabilitation: Harassment Need Only Be Severe or Pervasive

July 9, 2018

In Caldera v. Department of Corrections & Rehabilitation (2018) 25 Cal.App.5th 31, a correctional officer who stutters proved that a supervisor mocked his speech impediment in front of others at least a dozen times over roughly two years, and a jury awarded $500,000 for FEHA disability harassment. The Court of Appeal affirmed the liability finding, reaffirming that harassment need only be severe OR pervasive — not both — and that because the conduct occurred on “more than one isolated occasion,” the plaintiff was not required to prove a physical assault or threat. On the employer's cross-appeal, the court reversed the trial court's order granting a new trial on damages, because the court failed to file the statement of reasons within the ten days Code of Civil Procedure section 657 requires, rendering the order a nullity.

Meeks v. AutoZone: Sexual Harassment Evidence and Evidence Code Section 1106

June 21, 2018

In Meeks v. AutoZone, the Fourth District reversed defense verdicts in a FEHA sexual harassment case, holding that a cluster of evidentiary rulings cumulatively skewed a credibility contest against the plaintiff. The court drew a usable line under Evidence Code section 1106: a plaintiff’s sexually charged banter directed at the harasser is admissible under subdivision (b), but a privately posted photograph of her tattoo — never shared “with” the harasser — remains barred by subdivision (a). It also confirmed that a harasser puts his intent in issue, and opens the door to me-too evidence, simply by claiming he treated everyone the same.

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.

M.F. v. Pacific Pearl Hotel Management: Employer Liability for Harassment by a Nonemployee

October 26, 2017

Reversing a judgment of dismissal entered after a demurrer was sustained without leave to amend, the Court of Appeal held that a hotel housekeeper stated viable FEHA claims for sexual harassment by a nonemployee (Gov. Code, § 12940, subd. (j)(1)) and for failure to prevent harassment (id., subd. (k)) where she alleged she was assaulted on the employer's premises by a drunk trespasser the employer knew or should have known was wandering the property and aggressively propositioning other housekeepers. Whether the employer's response was adequate is a question of fact unsuitable for resolution on demurrer.

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.

Dickson v. Burke Williams: Failure to Prevent Requires an Underlying FEHA Violation

March 6, 2015

A massage therapist won a FEHA verdict against her spa employer for failing to prevent customer sexual harassment and sex discrimination — even though the same jury found the harassing conduct was not severe or pervasive and that she suffered no adverse employment action. The Court of Appeal reversed, holding that a claim under Government Code section 12940, subdivision (k) is wholly derivative: it cannot stand without an underlying, actionable FEHA violation. Sharpening Trujillo, the court held it is the absence of actionable harassment — not the lack of any harassing conduct — that defeats the prevention claim, and directed entry of judgment for the employer.

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…

Patterson v. Domino’s Pizza, LLC

August 28, 2014

A franchisor is not ordinarily the employer of its franchisee’s employees and is not vicariously liable for a franchisee-supervisor’s harassment unless the franchisor has retained or assumed general control over the relevant day-to-day aspects of the franchisee’s employment practices; a comprehensive operating system…

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.

Serri v. Santa Clara University: Personnel-Management Decisions Are Not Harassment

May 28, 2014

In Serri v. Santa Clara University (2014) 226 Cal.App.4th 830, the Court of Appeal affirmed summary judgment for the University and reaffirmed the FEHA line between discrimination and harassment: a supervisor’s personnel-management decisions — who attends an employee’s meetings, how they are run, and accusations of dishonesty or poor performance — are not harassment under Reno v. Baird and Janken, even if discriminatory; the few stray remarks the plaintiff cited were neither offensive nor pervasive. The court also held after-acquired expert evidence of no adverse consequences did not raise a triable issue on pretext.

Rosenfeld v. Abraham Joshua Heschel Day School: Avoidable Consequences Beyond Harassment

May 28, 2014

In Rosenfeld v. Abraham Joshua Heschel Day School, Inc. (2014) 226 Cal.App.4th 886, the Court of Appeal affirmed a defense verdict in an age-discrimination suit and held that an employer may put before the jury, on mitigation of damages, the employee’s failure to invoke the employer’s internal grievance procedure — extending the FEHA avoidable-consequences doctrine of State Dept. of Health Services v. Superior Court beyond the hostile-environment harassment context in which it arose.

Lewis v. City of Benicia: Same-Sex Sexual Harassment under FEHA

March 26, 2014

A heterosexual male volunteer at a city water plant sued under FEHA for same-sex harassment by two supervisors. The First District reversed summary judgment for one supervisor — gifts, lunches, suggestive remarks, and pornographic images supported an inference of genuine sexual interest and pervasiveness — while affirming for the other. Finding sexual interest on the record, the court expressly declined to decide the effect of the new statute providing that harassing conduct “need not be motivated by sexual desire.”

Taylor v. Nabors Drilling USA, LP: Same-Sex Harassment of a Heterosexual Man Is Because of Sex

January 13, 2014

A male oil-rig floorhand was relentlessly gay-baited, urinated on, and propositioned by his supervisors. The Court of Appeal held these sex-based attacks on his heterosexual identity were harassment because of sex under the FEHA — no proof of the harassers' sexual desire required — endorsing Singleton, rejecting Kelley, and holding that a special verdict rendered defective by a drafting typo is subject to harmless-error review.

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…

Vance v. Ball State University: Who Is a “Supervisor” — Title VII’s Narrow Rule vs. FEHA’s Broader One

June 24, 2013

The Supreme Court held 5-4 that an employee is a “supervisor” for Title VII vicarious-liability purposes only if empowered to take tangible employment actions — hire, fire, demote, promote, transfer, or discipline. An employee who merely directs daily work is a co-worker, so the employer is liable only for negligence. The decision does not govern California’s FEHA, which defines “supervisor” more broadly and imposes strict liability for supervisor harassment.

Rehmani v. Superior Court: Coworker Harassment and the Employer-Negligence Standard

March 29, 2012

A Muslim engineer born in Pakistan raised triable claims that his employer was liable for a hostile work environment created by Indian coworkers. Because the harassers were nonsupervisory, liability turned on negligence — whether the employer knew or should have known and failed to take corrective action. The Court of Appeal granted a writ reversing summary adjudication of the national-origin and religion harassment claims.

Pantoja v. Anton: Me-Too Evidence and Harassment Because of Sex

August 9, 2011

After a Kern County jury returned a defense verdict, the Court of Appeal reversed, holding that “me-too” evidence of harassment of other women — even outside the plaintiff’s presence — is admissible under Evidence Code section 1101, subdivision (b), to prove discriminatory intent and motive, and that harassment “because of sex” requires bias against the plaintiff’s gender, not sexual desire.

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…

Roby v. McKesson Corp.

November 30, 2009

Harassment and discrimination are distinct wrongs, but official personnel actions can themselves supply evidence of a hostile message and thus support a harassment claim; the two theories are not hermetically sealed. On punitive damages, the court held that in the circumstances of this case the amount of compensatory…

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…

Mokler v. County of Orange — Whistleblower Retaliation, Waived Exhaustion, and a Harassment Holding Overtaken by § 12923

November 26, 2007

The Fourth District affirmed a whistleblower-retaliation verdict for an Office on Aging director fired after warning that a County reorganization was unlawful — holding the County waived its exhaustion defense by first raising it after trial — while reversing her sexual-harassment claim under the pre-§ 12923 "severe or pervasive" standard and affirming a remittitur-backed new trial order on damages.

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…

Myers v. Trendwest Resorts: Supervisor Strict Liability Under FEHA

February 28, 2007

In Myers v. Trendwest Resorts, Inc. (2007) 148 Cal.App.4th 1403, the Third District reversed summary adjudication for the employer, reaffirming that under FEHA an employer is strictly liable for a supervisor's sexual harassment of a subordinate unless the harassment 'result[ed] from a completely private relationship unconnected with the employment'—a narrow exception the court declined to apply where the supervisor exploited his workplace authority.

Singleton v. United States Gypsum: Same-Sex Harassment Without Desire

July 3, 2006

In Singleton v. United States Gypsum Co. (2006) 140 Cal.App.4th 1547, the Second District reversed summary judgment for the employer, holding that same-sex sexual harassment need not be motivated by sexual desire to be actionable: it is enough that sex was 'used as a weapon to create a hostile work environment,' and the court found triable issues on both the harassment and the employer's knowledge.

Lyle v. Warner Brothers Television Productions

April 20, 2006

The sexually coarse and vulgar language used in the Friends writers’ room was not actionable sexual harassment on this record, because it was generally part of the creative process of writing adult comedic material rather than conduct directed at the plaintiff or at women because of their sex; harassment must be…

Miller v. Department of Corrections

July 18, 2005

Although an isolated workplace romance does not by itself constitute sexual harassment, widespread sexual favoritism that is severe or pervasive may create an actionable hostile work environment — one that conveys the demeaning message that women are sexual playthings and that managers view sexual favors as the way to…

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…

Chapman v. Enos: Who Is a ‘Supervisor’ for FEHA Harassment Liability

March 10, 2004

Whether a harasser is personally liable under the FEHA — and his employer strictly liable — often turns on one threshold fact: was he the plaintiff's “supervisor”? In Chapman v. Enos, the Court of Appeal reversed a defense verdict because the trial court told the jury a supervisor must be “fully accountable and responsible” for a subordinate's work product, an extra-statutory requirement that wrongly narrowed the FEHA's class of supervisors. Full accountability is an indicium of supervisory power, the court held, not an element; the statute requires only the responsibility to direct an employee's work using independent judgment.

State Dept. of Health Services v. Superior Court

November 24, 2003

An employer is strictly liable under the FEHA for a supervisor’s hostile-environment sexual harassment. But the avoidable-consequences doctrine applies: the employer may avoid liability for those damages the employee could have avoided with reasonable effort — for example, by timely using the employer’s complaint…

Northrop Grumman v. WCAB: A FEHA-Mandated Investigation Is a Good Faith Personnel Action

November 21, 2002

A workers' compensation judge awarded an inspector benefits for a psychiatric injury, finding the employer's investigation into a coworker's accusation that he had racially discriminated against a trainee was not a good faith personnel action under Labor Code section 3208.3, subdivision (h). The Court of Appeal reversed: because FEHA imposes an affirmative, mandatory duty to take all reasonable steps to prevent and investigate workplace discrimination, a legally compelled investigation conducted without arbitrary motive or intent to deceive is a good faith personnel action exempting the employer from compensation liability — and an unsubstantiated outcome does not retroactively brand the inquiry bad faith.

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…

Carrisales v. Department of Corrections: No Personal Liability for Coworker Harassment (Superseded)

December 9, 1999

The California Supreme Court held that a nonsupervisory coworker could not be held personally liable under FEHA for harassing a fellow employee: although former Government Code section 12940 prohibited “any … person” from harassing an employee, the statute as a whole reached only the employer's failure to take corrective action, not the coworker's underlying conduct. The court pointed the policy question to the Legislature — which responded the next year by adding Government Code section 12940, subdivision (j)(3), making individual employees personally liable for their own harassment and abrogating the holding.

Aguilar v. Avis Rent A Car System, Inc.

August 2, 1999

A remedial injunction prohibiting an employer (and a supervisor adjudicated to have engaged in unlawful racial harassment) from continuing to use racial epithets in the workplace against the plaintiff employees is permissible and does not constitute an unconstitutional prior restraint, because it enjoins speech only…

Etter v. Veriflo Corp.: The “Severe or Pervasive” Threshold for FEHA Racial Harassment

October 20, 1998

In one of California's first published workplace racial-harassment decisions under FEHA, the Court of Appeal affirmed a defense verdict, holding that the trial court properly instructed jurors that “occasional, isolated, sporadic, or trivial” racial conduct is not actionable and importing the federal Title VII “severe or pervasive” threshold into state law.

Beyda v. City of Los Angeles: Awareness and “Me-Too” Harassment

July 9, 1998

In Beyda v. City of Los Angeles (1998) 65 Cal.App.4th 511, the Second District affirmed a defense judgment, holding that a hostile-environment claim requires conduct that is both objectively and subjectively offensive, and that harassment directed at other employees is relevant only where the plaintiff was aware of it—conduct she neither witnessed nor knew about could not have altered the conditions of her own employment.

Faragher v. City of Boca Raton

June 26, 1998

An employer is vicariously liable for actionable hostile-environment harassment by a supervisor with authority over the employee. When no tangible employment action was taken, the employer may raise an affirmative defense (the Faragher/Ellerth defense): that it exercised reasonable care to prevent and promptly correct…

Burlington Industries v. Ellerth: Supervisor Harassment, Vicarious Liability, and the Ellerth/Faragher Defense

June 26, 1998

In Burlington Industries, Inc. v. Ellerth (1998) 524 U.S. 742, the U.S. Supreme Court held that an employer is vicariously liable under Title VII for a supervisor’s hostile-environment harassment of a subordinate, but where the harassment yields no tangible employment action the employer may raise the two-element Ellerth/Faragher affirmative defense. The Court demoted the “quid pro quo” and “hostile work environment” labels from liability tests to threshold proof categories and grounded employer liability in general agency principles.

Guthrey v. State of California — The Evidentiary Rulebook for Opposing Summary Judgment

May 11, 1998

The Fifth District affirmed summary judgment and a $64,796.50 defense fee award against a correctional counselor whose gender-bias case rested on "perception" rather than proof — writing the evidentiary rulebook for MSJ oppositions: admissible, specific, personal-knowledge evidence (and record citations on appeal), or nothing.

Weeks v. Baker & McKenzie

May 4, 1998

In Weeks v. Baker & McKenzie (1998) 63 Cal.App.4th 1128, the Court of Appeal affirmed a FEHA sexual-harassment verdict for a legal secretary against a partner and his international law firm, sustaining punitive damages under Civil Code section 3294. The court applied section 3294, subdivision (b)'s managing-agent and ratification requirements to hold the firm liable for the partner's harassment and upheld the punitive award against constitutional challenge.

Trujillo v. North County Transit Dist.: No Failure-to-Prevent Liability Without an Underlying Wrong

April 17, 1998

The Court of Appeal affirmed judgment notwithstanding the verdict for the employer, holding that a jury finding of failure to take reasonable steps to prevent discrimination and harassment cannot stand where the same jury found, by special verdict, that no discrimination, harassment, or retaliation actually occurred. A failure-to-prevent claim is derivative: there must be an underlying actionable wrong to prevent.

Oncale v. Sundowner Offshore Services, Inc.

March 4, 1998

Title VII’s prohibition of discrimination “because of sex” protects against same-sex sexual harassment; nothing in the statute bars a claim merely because the plaintiff and the harassers are of the same sex, so long as the conduct constitutes discrimination because of sex and meets Title VII’s other requirements.

Fiol v. Doellstedt: No Personal FEHA Liability for a Nonharassing Supervisor’s Inaction

November 19, 1996

The Court of Appeal affirmed judgment on the pleadings for a second-tier supervisor sued only for failing to act on a harassment complaint, holding that a nonharassing supervisor is not personally liable under FEHA — not as an aider and abettor of the harasser or employer, and not as the employer's agent — and distilling supervisor liability into three clear rules.

Doe v. Capital Cities: Strict Liability for an Agent-Harasser Off the Worksite

November 8, 1996

An aspiring actor alleged a casting director drugged and gang-raped him at the director's home. The Court of Appeal held the director could be treated as the network's agent, triggering FEHA strict liability rather than the negligence standard for coworkers, and that the off-site, off-hours assault was sufficiently work-related to be actionable — while affirming dismissal of the negligent-hiring claim.

Janken v. GM Hughes Electronics

June 5, 1996

Individual supervisors are not personally liable under the FEHA for discrimination, which arises out of the necessary personnel-management functions of the employer; by contrast, harassment — conduct outside the scope of necessary job performance and presumably engaged in for personal gratification or bias — can give…

Proksel v. Gattis: Paramour Favoritism Is Not Sex Discrimination Under FEHA

January 26, 1996

In Proksel v. Gattis (1996) 41 Cal.App.4th 1626, the Court of Appeal held that an employer's favoritism toward a coworker with whom he is romantically involved does not, without more, give rise to a sex discrimination or sexual harassment claim under FEHA or California public policy — declining to make courts a generalized police power over consensual office relationships.

Matthews v. Superior Court: Individual Supervisor Liability for Harassment Under FEHA

April 26, 1995

In a same-sex sexual-harassment action under FEHA, the trial court sustained the individual defendants' demurrers on the theory that only the employer can be liable. The Court of Appeal granted a writ of mandate, holding that 'persons' under Government Code section 12965 includes individuals, so a harassment claimant may sue the supervisors who personally participated in or aided and abetted the conduct. Harassment by a supervisor with hire-and-fire power is a particularly personal form of discrimination, distinct from hiring discrimination, for which the employer alone answers.

Kelly-Zurian v. Wohl Shoe Co.: Harris Comes to FEHA, and the Limits of Strict Liability

February 10, 1994

In Kelly-Zurian v. Wohl Shoe Co. (1994) 22 Cal.App.4th 397, the Court of Appeal carried Harris v. Forklift Systems into California's FEHA, holding that harassment need not seriously affect a plaintiff's psychological well-being to be actionable. It confirmed that an employer is strictly liable in compensatory damages for a supervisor's harassment, but held that punitive damages run only through Civil Code section 3294's managing-agent test — which a supervisor with hiring-and-firing power, but no policymaking discretion, did not satisfy.

Mogilefsky v. Superior Court: FEHA Reaches Same-Sex Sexual Harassment

December 10, 1993

A male creative editor alleged that his male supervisor subjected him to quid pro quo and hostile-environment sexual harassment. Sustaining the complaint, the Court of Appeal held that FEHA’s prohibition on sexual harassment reaches same-gender conduct: the statute protects against harassment “because of sex” regardless of whether harasser and victim are of the same sex.

Harris v. Forklift Systems: The Severe-or-Pervasive Hostile-Environment Standard

November 9, 1993

A unanimous Supreme Court held that Title VII hostile-environment harassment need not “seriously affect [an employee’s] psychological well-being” or cause tangible injury. Reaffirming Meritor, the Court adopted a “middle path” requiring conduct severe or pervasive enough to create an environment that both a reasonable person and the victim find abusive, judged on the totality of the circumstances.

Bihun v. AT&T Information Systems: The Missing Personnel File and the Suppression Inference

February 24, 1993

The Court of Appeal affirmed a multimillion-dollar FEHA sexual-harassment judgment, holding that AT&T's concealment of the harasser's lost personnel file justified a willful-suppression instruction, and that sexual harassment is a personal injury supporting prejudgment interest. The decision is a leading authority on respondeat-superior liability for harassment and on the adverse inference from spoliated employment records.

Fisher v. San Pedro Peninsula Hospital

October 2, 1989

To state a hostile-environment sexual harassment claim, a plaintiff must allege conduct that was unwelcome, based on sex, and sufficiently severe or pervasive to alter the conditions of employment and create an abusive working environment; an employee may be “subjected to” a hostile environment by harassment she…

Meritor Savings Bank v. Vinson

June 19, 1986

A claim of “hostile environment” sexual harassment is a form of sex discrimination actionable under Title VII; the harassment need not cause economic or tangible loss, but must be sufficiently severe or pervasive to alter the conditions of employment and create an abusive working environment, and must be unwelcome.