California employment case index

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.

A trucking-job applicant brought an FCRA class action over confusing, noncompliant background-check disclosure forms; after Limon v. Circle K required concrete injury, the trial court decertified the class. The First District reverses and declines to follow Limon: California courts are not bound by Article III, and a willful FCRA violation supports statutory damages of $100–$1,000 and standing without proof of harm.

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.

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.

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.

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 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.

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.

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.

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.

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.

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.

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.

After Turrieta v. Lyft disapproved Moniz II by name, the objector in the long-running Adecco PAGA settlement tried a new key for the same lock: she was asserting her own personal interests — a penalty share, fees, a service award — not the state’s. Division Four dismissed her appeals. Every interest she claimed arises from PAGA itself and is derivative of the state’s; relabeling it personal is a semantic exercise that would leave Turrieta’s holding with no effect. The first published application of Turrieta makes overlapping-settlement fights a before-judgment affair: object in the approving court, police preclusion scope under LaCour — but intervention, vacatur, and appeal are closed.

Does every PAGA action contain an individual claim an employer can compel to arbitration? The split the California Supreme Court will resolve.

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.

Three Lyft drivers filed overlapping PAGA actions; when one settled, the other two moved to intervene, objected, and moved to vacate the judgment — invoking their status as deputized proxies of the state. A divided Supreme Court held a PAGA plaintiff’s deputization confers no such rights: the statute delegates the power to commence and prosecute one’s own action, and it entrusts settlement oversight to the LWDA and the approving court. Moniz v. Adecco is disapproved. What remains for rival plaintiffs is coordination, informal input to the approving court, and advocacy to the LWDA — plus the open questions the court expressly reserved, including the state’s own rights and personal-interest intervention.

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.

Marshalls bought a sweeping PAGA release in a federal settlement whose plaintiff had noticed only one theory to the LWDA — off-the-clock time in end-of-shift bag checks. When Robert LaCour later sued over expense reimbursement and other never-noticed violations, the trial court struck his claims as precluded. Division Four reversed: a PAGA judgment’s preclusive reach is measured by the claims the settling plaintiff pleaded or was authorized by her LWDA notice to plead, not by the words of her release, and an unauthorized proxy is in privity with no one. The court also upheld pandemic Emergency Rule 9, and it reserved issue preclusion while barring any double recovery.

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.

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…

Settling and dismissing individual Labor Code claims does not strip an employee of standing to pursue a PAGA claim. PAGA standing depends on being an “aggrieved employee” — someone employed by the alleged violator against whom one or more Labor Code violations were committed — not on maintaining an unredressed…

The unpaid-wages component of section 558 is not a civil penalty recoverable through PAGA; only the fixed civil penalties ($50/$100 per employee per pay period) are PAGA penalties. Because the unpaid wages are not part of the PAGA claim, the trial court could not compel that portion to arbitration as if it were.

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.

A PAGA plaintiff is presumptively entitled to discover the identities and contact information of other aggrieved employees statewide, subject to the employees’ privacy interests (which may be protected through a Belaire-West opt-out notice) rather than to a heightened threshold showing of merit before discovery.

For certification, the key question is whether the hiring entity’s right to control the manner and means of the work — the principal test of employment — can be established through common proof (such as the standard contract and uniform policies), not whether each worker was in fact controlled to the same degree; the…

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.

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.

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.

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.

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…

Arias v. Superior Court (2009) 46 Cal.4th 969 holds that a representative PAGA action for civil penalties need not satisfy class-action requirements, while a representative UCL claim for the same Labor Code violations must — and that a non-class PAGA action does not violate the employer’s due-process rights.

Two unions took assignments from more than 150 transportation workers and sued their employers under the UCL and PAGA for meal- and rest-break violations. The Supreme Court unanimously shut the door: after Proposition 64, an assignment cannot confer UCL standing on an uninjured assignee, and a PAGA claim cannot be assigned at all — the act creates no property right, so the aggrieved employee, suing as the state’s proxy, ‘does not own an assignable interest.’ Associational standing does not fill the gap, and representative UCL claims must proceed as class actions per the same-day companion, Arias. The state-proxy architecture announced here is the foundation Iskanian, Kim v. Reins, Adolph, and Turrieta all build on — and the 2024 reform kept its line intact.

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.

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.

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…

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…

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.