California employment case index

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.

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.

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…