California employment case index

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 employee with an undisclosed bipolar diagnosis was fired after two episodes of erratic, irrational behavior at work, then sued Target under FEHA. The Second District affirms summary judgment: employer knowledge is a prerequisite to FEHA disability liability, and it is imputed only when disability is the “only reasonable interpretation” of the conduct — not where intoxication, medication, or sleep deprivation could equally explain it.

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.

Must a California employer accommodate an employee who is not disabled but who cares for someone who is? Castro-Ramirez said in 2016 that FEHA “may reasonably be interpreted” to require it — and expressly declined to decide. Nine years on, no published California decision has answered, the Civil Rights Council’s 2020 request for public input produced no regulation, and CACI 2547 still calls the element optional. Meanwhile five federal district courts — Castro v. Classy, McVay, and 2025’s Acosta, Head, and De Wit — have all held that failure-to-accommodate and interactive-process claims may rest on associational disability. This analysis maps the statutory argument, the unpublished contrary authority, and how to plead the caregiver’s claim while the question stays open.

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.

After a harbor patrol officer’s on-duty accident left him unable to work, the Port San Luis Harbor District told him retirement was his “single option” — then denied his CalPERS disability-retirement application and terminated him on a resignation theory it later admitted was false. Division Six affirmed summary judgment on his FEHA claim anyway: denial of disability-retirement payments is not an adverse employment action, because retirement benefits begin when employment ends, and a claimant who cannot perform his essential duties is not a “qualified individual” under Green. The remedy for a wrongful denial is an appeal to the Office of Administrative Hearings and administrative mandamus — a route Lowry lost by following a repealed procedure.

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.

A unanimous Court of Appeal reversed summary judgment for Kaiser, holding that even though the employer granted every accommodation the employee requested, it could still be liable for failing to accommodate and failing to engage in the interactive process because, through her supervisor, it knew of but never provided a needed lighter-tasks accommodation. The court also reinstated the disability-discrimination and retaliation claims on a cat’s-paw theory.

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…

In the Sixth District's treatise-level employment-MSJ opinion, a security supervisor laid off days before his expected return from knee surgery revives his disability discrimination and wrongful termination claims — the employer's RIF showing was inadequate under Guz's "roadmap" because it never explained retaining two lower-ranked supervisors, and its failure to accommodate, the timing, and an overpayment vendetta were substantial evidence of animus — while the retaliation claim fails because pre-2016 accommodation requests were not protected activity.

The Court of Appeal held that a plaintiff suing for failure to engage in the interactive process under Government Code section 12940, subdivision (n) must prove a reasonable accommodation was actually available. Substantial evidence supported finite leave as an available accommodation for the plaintiff’s carpal-tunnel (wrist) injury, but none supported any accommodation for her later shoulder injury. Because the general verdict did not reveal which disability the jury relied on, the judgment was reversed for a limited retrial.

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…