California employment case index

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.

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.

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.

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.

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.

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.

A former Work Practice Apprentice at the San Francisco Zen Center won a wage award, but the trial court held the First Amendment’s ministerial exception barred his claims. The First District reverses, adopting its companion case Lorenzo: the exception bars only claims that require resolving ecclesiastical questions, and the Center showed none. NOTE: the controlling ministerial-exception issue is now before the California Supreme Court in Lorenzo (S294565), so this opinion is citable for persuasive value only.

An employer must prove a reasonable, good-faith attempt to comply before escaping liquidated damages under Labor Code section 1194.2.

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.

Two veterinary workers signed a standing written waiver of their meal break for shifts of six hours or less — revocable at any time — then sued years later, arguing meal periods can be waived only shift by shift after the right accrues. Division Seven disagreed: section 512 and the wage orders are silent on timing and form, and eighty years of IWC history treats written prospective waivers as employee protection, not evasion. But the holding is expressly conditional: the court reserved unconscionable, coerced, unknowing, and irrevocable waivers, and oral prospective waivers entirely. Bradsbery is a safe harbor for clean waiver programs — and a litigation roadmap against defective ones.

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.

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.

The California Supreme Court unanimously upholds Proposition 22 (Bus. & Prof. Code, § 7451), holding that the Legislature’s “plenary” and “unlimited” authority over workers’ compensation under article XIV, section 4 is not exclusive of the people’s reserved initiative power — while expressly reserving the harder questions about Proposition 22’s seven-eighths amendment rule.

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.

In Naranjo II (2024) 15 Cal.5th 1056, the California Supreme Court holds that an employer’s objectively reasonable, good-faith belief that its wage statements complied with the law defeats both Labor Code § 226 penalties (no “knowing and intentional” violation) and § 203 waiting-time penalties (no “willful” failure) — harmonizing the two penalty statutes around a common good-faith defense.

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. […]

A solar-project electrician queued unpaid at a security gate while guards inspected vehicles, drove miles of access road under strict site rules, and ate lunch confined to a designated area under a CBA calling meal periods “unpaid.” Answering the Ninth Circuit, a unanimous Supreme Court held the exit procedure is compensable “hours worked”; the gate-to-lot drive is compensable only as “employer-mandated travel,” and only if the gate is the first location required for a reason beyond site access; and no collective bargaining agreement can waive the minimum wage for a meal period during which the employer’s confinement forecloses otherwise feasible personal activities.

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.

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.

Home Depot’s Kronos system recorded Delmer Camp’s time to the minute — then quarter-hour rounding paid him for 470 fewer minutes than his own timecards showed. The Sixth District reversed summary judgment: under Troester and Donohue, an employer that can capture and has captured exact worktime must pay for all of it, and no California text authorizes rounding that underpays an identifiable employee. The panel invited the Supreme Court to decide whether See’s Candy neutral rounding survives at all — and the Court granted review (S277518), where the case remains pending. Cite it as persuasive only, with the review-granted parenthetical, and re-verify status before filing.

Naranjo v. Spectrum Security Services, Inc. (Naranjo I) Premium pay owed for missed meal and rest breaks under Labor Code section 226.7 constitutes “wages,” so it must be reported on wage statements under section 226 and is subject to waiting-time penalties under section 203 when not timely paid at separation. Naranjo v. Spectrum Security Services, […]

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.

Ferra v. Loews Hollywood Hotel, LLC (2021) 11 Cal.5th 858 holds that the meal/rest premium under Labor Code § 226.7(c) must be paid at the “regular rate of compensation,” which is synonymous with the overtime “regular rate of pay” and includes all nondiscretionary payments — not just base hourly wages. The holding is retroactive.

Donohue v. AMN Services, LLC (2021) 11 Cal.5th 58 holds that employers may not round meal-period time punches, and that time records showing short, late, or missed meal periods raise a rebuttable presumption of a violation — usable even at summary judgment.

Vazquez v. Jan-Pro Franchising International, Inc. (2021) 10 Cal.5th 944 holds that the ABC test adopted in Dynamex applies retroactively — to all cases not yet final when Dynamex was decided — exposing pre-2018 wage-order conduct to the new worker-classification standard.

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.

The Court of Appeal affirms a statewide preliminary injunction against Uber and Lyft, holding the People likely to prevail under prong B of the ABC test (Lab. Code, § 2775) — rideshare driving is within the usual course of the companies’ business — and rejecting the “technology platform” defense as a false dichotomy. (Predates Proposition 22; see Castellanos.)

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…

Frlekin v. Apple Inc. (2020) 8 Cal.5th 1038 holds that time spent waiting for and undergoing mandatory exit bag-and-device searches is compensable “hours worked” under the control clause — even after clocking out, and even though employees could have avoided a search by not bringing a bag. It applies Morillion and rejects the “optional” defense.