California employment case index

Tameny v. Atlantic Richfield Co. (1980) 27 Cal.3d 167 created California’s public-policy wrongful-discharge tort: an employee fired for refusing to commit an illegal act may sue in tort, recovering tort and punitive damages, not just contract remedies.

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.

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.

A PAGA plaintiff proved Labor Code violations but recovered about one percent of the $56 million maximum he calculated, and his attorney fees were cut by a 0.70 negative multiplier. The Fourth District affirms: section 2699(e)(2) mandates no method for reducing penalties — per-employee is fine — and the trial court adequately justified the fee multiplier, leaving the “heightened scrutiny” question for the Supreme Court.

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.

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.

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.”

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.

A former Academy Mortgage employee won a False Claims Act qui tam case after the government declined to intervene, and her counsel obtained a fee award enhanced by a 1.75 lodestar multiplier. The Ninth Circuit reverses the enhancement: above-lodestar multipliers are reserved for the “rare and exceptional” case, cannot rest on factors already in the lodestar, and require a reviewable methodology.

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.

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

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.

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.

A sheriff’s deputy proved every element of his whistleblower retaliation claim — and still left the courthouse owing costs. The jury found his protected disclosures were a factor in the County’s actions against him, but also that the County would have made the same decisions anyway. Division Four held that a plaintiff defeated by the section 1102.6 same-decision defense who obtains no relief has not brought a “successful action” under section 1102.5(j): no attorney’s fees, and the employer is the prevailing party for costs. The panel declined to extend Harris v. City of Santa Monica’s FEHA rule, agreed the contrary result would be “a rational policy choice,” and pointedly left the fix to the Legislature.

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.

When a trial court takes an across-the-board percentage cut to a prevailing plaintiff’s lodestar, must it explain why that particular percentage — or is a general finding of overlitigation enough? Warren demanded case-specific explanation and Snoeck brought that rule into FEHA; Morris rejected it as imported federal law, and Cash v. County of Los Angeles — a 30 percent, $195,234 haircut affirmed over Justice Baker’s meat-cleaver dissent — squarely joined Morris. The Supreme Court granted review on August 20, 2025 (S291827). Until it rules, Cash is persuasive-only under rule 8.1115(e)(1), the published split remains live, and the smart fee motion is built to win under either standard — starting with a written request for specific findings.

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.

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).

A partially published Court of Appeal decision on defamation and compelled self-publication in the termination context — an issue now pending before the California Supreme Court.

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. […]

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.

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.

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.

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.

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 […]

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.

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.

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. 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: […]

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…

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.

Government Code section 12965(b) governs both fee and cost awards in FEHA actions and makes them discretionary under the asymmetric Christiansburg standard: a prevailing plaintiff ordinarily recovers fees and costs, but a prevailing defendant may recover them only if the action was objectively frivolous, unreasonable,…

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…

In Salas v. Sierra Chemical Co. (2014) 59 Cal.4th 407, a production worker who had obtained his job with a false Social Security number sued under FEHA for disability discrimination and retaliation; after litigation began, the employer discovered the fraud and won summary judgment on after-acquired-evidence and unclean-hands theories. The California Supreme Court reversed. It held that Senate Bill No. 1818 (Gov. Code § 7285; Civ. Code § 3339; Lab. Code § 1171.5) extends FEHA's remedies to workers “regardless of immigration status,” and that federal immigration law (IRCA, as read in Hoffman Plastic) does not preempt those state remedies except as to lost-pay damages for the period after the employer discovers the worker's ineligibility. Neither after-acquired evidence nor unclean hands is a complete defense; both bear on the remedy, not on liability.

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.

A maintenance technician paid $10 an hour and never reimbursed for the heavy work mileage he was ordered to drive in his own truck could state a claim for constructive discharge in violation of public policy, where the unreimbursed expense pushed his effective pay below the minimum wage; whether conditions were intolerable was normally a jury question, so the demurrer should not have been sustained. The IIED count, however, was barred by workers' compensation exclusivity.

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…

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…

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…

A trial court has discretion to deny or reduce a FEHA fee award when the plaintiff’s recovery is modest and the case could have been litigated as a limited civil case; where the fees sought are grossly disproportionate to a minor recovery (here, the judgment could have been rendered in a limited civil case), the court…

In a mixed legal-equitable trial, the First District held that a judge must follow a jury's factual findings on the legal claims when fashioning equitable relief on common facts — yet may independently resolve an equitable defense such as estoppel that turns on facts the jury never decided. Hoopes v. Dolan affirmed a defense judgment and supplies the procedural architecture for sequencing and trying equitable affirmative defenses alongside a jury verdict — a structure FEHA practitioners invoke when an employer raises equitable defenses.

Miklosy v. Regents of University of California The Whistleblower Protection Act bars a damages action against the University once it timely decides an internal retaliation complaint; a Tameny tort does not lie against a public entity or against a supervisor; and workers’ compensation exclusivity bars the related emotional-distress claim. Miklosy v. Regents of University of […]

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…

A unanimous Supreme Court holds that a signed offer letter stating employment is "at will" and terminable "at any time" is unambiguous — recruitment talk of a "long-term fix" cannot create an implied for-cause contract or support fraud reliance — with Justice Baxter (joined by Corrigan) urging reconsideration of Pacific Gas and Justice Moreno reserving "upon notice" clauses.

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…

Attorney fees awarded under section 12965 belong to the attorneys whose services earned them, except to the extent the attorneys and client have entered an enforceable agreement providing otherwise; the portion of a statutory fee award exceeding fees the client already paid does not belong to the client by default.

Statutory attorney fees are calculated by the lodestar method — the reasonable hours expended multiplied by a reasonable hourly rate — and the lodestar may be adjusted by a multiplier based on factors including the contingent risk of the representation, the novelty and difficulty of the issues, the skill displayed,…

A jury found Rosie Thompson, a human-resources director, was constructively discharged in retaliation for opposing employment practices she reasonably believed unlawful. The Court of Appeal affirmed the verdict and the full damages award, holding the after-acquired-evidence defense — an equitable doctrine akin to unclean hands — limits relief only where the employer proves the employee in fact would have been terminated for the later-discovered conduct, a burden Tracor failed to meet.

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…

A steelworker fired months after testifying in a coworker’s asbestos case revived his public-policy and FEHA disability claims: they required no CBA interpretation, his union could not waive his judicial forum, and coworker evidence that the termination-night incident was staged made pretext a jury question.

An undocumented assembler bought false papers to get hired, then sued for relentless sexual harassment. The employer's only defense was after-acquired evidence of her document fraud. Following McKennon, the Court of Appeal reversed: after-acquired evidence is no complete bar to a FEHA harassment claim, an undocumented worker keeps full employment-law protection while employed, and the defense's factual predicate — whether the employer in fact would have fired her — is a jury question.

Good cause to terminate under an implied “good cause” contract means a reasoned, good-faith conclusion that the misconduct occurred, supported by substantial evidence gathered through an adequate investigation that gave the employee notice and a chance to respond — not the jury’s after-the-fact determination of…

Age discrimination in violation of the FEHA supports a common-law claim for wrongful discharge in violation of public policy. When a plaintiff relies on a statutory prohibition to support such a claim, the common-law claim is subject to the statute’s substantive limits (the nature and scope of the prohibition) but not…

In Mullins v. Rockwell International Corp. (1997) 15 Cal.4th 731, a long-tenured manager who resigned after a demotion and a steady erosion of his responsibilities sued for constructive discharge in contract; the trial court and Court of Appeal held his claims time-barred, running the limitations period from the date he learned of the adverse changes. A unanimous Supreme Court reversed. Extending its reasoning in Romano v. Rockwell, the court held that the limitations period for a contract action based on constructive discharge runs from the date of actual termination of employment — the resignation — not from the onset of, or the employee's knowledge of, the intolerable conditions. Because the breach alleged is termination without good cause, and an employee who continues to perform retains an election of remedies, the cause of action accrues only upon resignation. The court disapproved Regents of University of California v. Superior Court to the extent inconsistent.

Nine days after Fatmeh Badih told her employer — a physician with fewer than five employees — that she was pregnant, her last day was set; the DFEH would not even accept her complaint because the office was too small for the FEHA. Division One of the First District affirmed her wrongful-discharge verdict anyway, holding that pregnancy discrimination is a form of sex discrimination under article I, section 8 of the California Constitution, whose fundamental public policy against sex discrimination in employment binds every employer regardless of size. Jennings v. Marralle was distinguished, not disturbed: age has no constitutional anchor, but sex — and therefore pregnancy — does. Badih remains the pleading answer for pregnancy discharges at California's smallest workplaces.

A married couple fired by a law firm sued for wrongful termination, but the firm discovered during litigation that both had concealed felony convictions. The Court of Appeal affirmed summary judgment: their at-will acknowledgments doomed the contract claims, and the after-acquired-evidence doctrine barred the statutory and public-policy claims because the Camps had misrepresented a government-imposed job qualification, leaving them unlawfully unqualified for the position. Camp marks the point where after-acquired evidence shifts from limiting remedies to barring recovery outright.

In McKennon v. Nashville Banner Publishing Co. (1995) 513 U.S. 352, a 62-year-old secretary discharged in what the employer conceded for summary-judgment purposes was age discrimination admitted in deposition that she had copied confidential company documents during her final year. The lower courts held this after-acquired evidence barred all ADEA relief. A unanimous Supreme Court, per Justice Kennedy, reversed. Such evidence does not bar liability — the ADEA violation that prompted the discharge cannot be disregarded — but it bears on the remedy: as a general rule it forecloses reinstatement and front pay, and back pay runs only from the date of the unlawful discharge to the date the employer discovered the wrongdoing. And the employer must first prove the wrongdoing was so severe that it would in fact have discharged the employee on that ground alone.

To establish a constructive discharge, an employee must prove that the employer either intentionally created or knowingly permitted working conditions so intolerable or aggravated that a reasonable person in the employee’s position would have had no reasonable alternative but to resign; ordinary job dissatisfaction or…

General Dynamics Corp. v. Superior Court In-house counsel may sue for wrongful termination — both on an implied-in-fact contract theory and, within limits, a Tameny public-policy theory — even though a client may generally discharge its lawyer at will. General Dynamics Corp. v. Superior Court (1994) 7 Cal.4th 1164 Parallel citations: 876 P.2d 487; 32 […]

A 10-year employee sued for wrongful discharge and age discrimination; the employer then discovered application misrepresentations made nearly a decade earlier and won summary judgment on the theory that the fraud forfeited all remedies. The Court of Appeal reversed, declining to adopt a blanket rule that material application falsification is a complete defense to a claim the employer did not know about when it fired the worker. The first published California decision on the point, Cooper anticipated the Supreme Court's McKennon by less than a year.

In Lakin v. Watkins Associated Industries (1993) 6 Cal.4th 644, a unanimous California Supreme Court resolved three recurring procedural and damages questions: a postjudgment order denying discovery-sanction (cost-of-proof) attorney fees is separately appealable; a personal-injury plaintiff bears the burden of proving which portion of a general award is “damages for personal injury” before claiming Civil Code section 3291 prejudgment interest; and that interest never accrues on punitive damages. The court reversed the Court of Appeal and remanded.

The discharge stated an actionable Tameny claim and was not preempted by the workers’-compensation law (id. at p. 1085). More durably, the court held that the public policy underpinning a Tameny claim must be “tethered to” specific constitutional or statutory provisions, not merely the court’s own notions of sound…

The FEHA does not displace other state-law remedies, including common-law claims, for employment discrimination; an employee need not exhaust FEHA’s administrative process before pursuing nonstatutory causes of action; and sex discrimination in employment may support a tort claim for wrongful discharge in…

The Tameny claim failed because Foley’s report about a coworker served the employer’s private interest, not a fundamental public policy. Foley nonetheless adequately pleaded an implied-in-fact contract to discharge only for good cause — based on longevity of service, promotions, raises, assurances, and the employer’s…

Punitive damages are recoverable under the FEHA in a court action for intentional employment discrimination; the statute’s remedial scheme does not limit a plaintiff to the relief the administrative agency could award, so the full range of tort-type remedies, including punitive damages, is available.

Yes. The longevity of Pugh’s service, together with the employer’s commendations and assurances and its acknowledged practices, supported an implied-in-fact promise that he would not be discharged except for good cause; the nonsuit was therefore error and the judgment was reversed (id. at p. 330).