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.

Nine hospital-system employees sought religious exemptions from a COVID-19 vaccination requirement and sued under Title VII when they were denied. The Ninth Circuit affirms judgment for the employer: after Groff v. DeJoy, undue hardship means a “substantial” burden — including realistic health, safety, and staffing costs — and exempting unvaccinated clinical staff during the Delta surge met that standard.

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 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.

World Vision revoked a job offer to a customer-service applicant after learning she was in a same-sex marriage. The Ninth Circuit held the ministerial exception barred her Title VII and WLAD claims, because — viewed in the context of World Vision’s religious mission — CSRs perform “vital religious duties” by communicating the faith and praying with donors. A striking extension of the exception’s functional reach to an entry-level, remote position.

The University of California refuses to employ undocumented students who lack federal work authorization. The First District held that the policy facially discriminates based on immigration status under the FEHA national-origin regulations, and that the University’s only justification — fear that the federal government might read IRCA to cover it and prosecute — could not sustain the policy, because the University never attempted the regulation’s clear-and-convincing showing that federal law requires the discrimination. The court issued a writ directing the Regents to reconsider the policy on proper criteria, while pointedly declining to decide whether IRCA applies to state entities at all.

Marlean Ames, a heterosexual woman, lost a promotion to a lesbian candidate, then was demoted and replaced by a gay man. The Sixth Circuit threw out her Title VII case because she had not shown “background circumstances” suggesting her employer was the unusual one that discriminates against the majority. A unanimous Supreme Court vacated: Title VII protects “any individual,” and its prima facie standard does not vary with the plaintiff’s group. Justice Thomas, joined by Justice Gorsuch, concurred to question whether McDonnell Douglas belongs at summary judgment at all — an invitation with consequences for FEHA practice under Guz.

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.

A Postmaster of Chinese ethnicity was demoted after coworkers targeted her with complaints her supervisor believed were racially motivated, and the demotion was confirmed by an official who reviewed only the paperwork. The Ninth Circuit reversed summary judgment, holding that replacement by a white man satisfied the McDonnell Douglas fourth element and that a genuine dispute existed over whether the confirming decision was “actually independent or influenced by subordinate bias” — a Ninth Circuit application of the cat’s-paw doctrine.

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

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.

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.

In Hoglund v. Sierra Nevada Memorial-Miners Hospital (2024) 102 Cal.App.5th 56, a 62-year-old hospital laboratory supervisor won a bench verdict for FEHA age discrimination, harassment, and wrongful termination after her director made years of ageist remarks and steered her selection for layoff. The Court of Appeal affirmed. Applying the “cat's-paw” (imputed-animus) theory, it held that a biased subordinate's discriminatory motive may be imputed to the employer where the subordinate was a “significant participant” in the adverse decision — even though a separate, formally unbiased officer signed off on the final call. Animus by a significant participant supports an inference that the decision itself was discriminatory.

Muldrow v. City of St. LouisA Title VII plaintiff challenging a discriminatory job transfer must show only “some harm” to a term or condition of employment — not a “significant” or “material” disadvantage.Muldrow v. City of St. Louis (2024) 601 U.S. 346Parallel citations: 144 S.Ct. 967; 218 L.Ed.2d 322. Supreme Court of the United States. […]

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.

An Evangelical Christian postal worker who would not work Sundays sued under Title VII after being disciplined for declining Sunday Amazon deliveries. The Third Circuit, reading Hardison to require only 'more than a de minimis cost,' affirmed summary judgment for the employer. A unanimous Supreme Court vacated and clarified the standard: an employer that denies a religious accommodation must show that granting it would result in substantial increased costs in relation to the conduct of its particular business, not merely a more-than-trivial cost.

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…

When a medical resident sues her residency program for discrimination, the program's 'academic' justification for dismissing her is not entitled to the deference courts extend to genuine academic judgments. The Second District held that a resident is predominantly an employee, not a student, so the jury must evaluate the program's real reason without deference — and the contrary instruction required a new trial.

An employer cannot rebut a discrimination plaintiff’s prima facie case by professing ignorance: stage-two production under McDonnell Douglas demands the actual nondiscriminatory reason for a failure to interview, not a witness’s “I don’t know.”

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.

A 60-year-old engineer cut in a 306-person, budget-driven layoff lost on both procedure and merits: his EEOC and post-closure DFEH amendments could not exhaust class and disparate-impact theories, and his pretext case failed for want of combined-position qualifications, controlled statistics, and comparators.

An employer that fires an individual merely for being gay or transgender violates Title VII. Discrimination based on sexual orientation or gender identity necessarily entails discrimination because of sex, because it is impossible to discriminate against a person for being gay or transgender without taking the…

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…