California employment case index

Green v. Ralee Engineering Co. (1998) 19 Cal.4th 66 holds that administrative safety regulations — here FAA airline-safety rules — can supply the fundamental public policy supporting a Tameny wrongful-discharge claim, extending Gantt beyond constitutional and statutory sources.

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.

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 former Academy Mortgage employee won a False Claims Act qui tam case after the government declined to intervene, and her counsel obtained a fee award enhanced by a 1.75 lodestar multiplier. The Ninth Circuit reverses the enhancement: above-lodestar multipliers are reserved for the “rare and exceptional” case, cannot rest on factors already in the lodestar, and require a reviewable methodology.

A sheriff’s deputy proved every element of his whistleblower retaliation claim — and still left the courthouse owing costs. The jury found his protected disclosures were a factor in the County’s actions against him, but also that the County would have made the same decisions anyway. Division Four held that a plaintiff defeated by the section 1102.6 same-decision defense who obtains no relief has not brought a “successful action” under section 1102.5(j): no attorney’s fees, and the employer is the prevailing party for costs. The panel declined to extend Harris v. City of Santa Monica’s FEHA rule, agreed the contrary result would be “a rational policy choice,” and pointedly left the fix to the Legislature.

When a trial court takes an across-the-board percentage cut to a prevailing plaintiff’s lodestar, must it explain why that particular percentage — or is a general finding of overlitigation enough? Warren demanded case-specific explanation and Snoeck brought that rule into FEHA; Morris rejected it as imported federal law, and Cash v. County of Los Angeles — a 30 percent, $195,234 haircut affirmed over Justice Baker’s meat-cleaver dissent — squarely joined Morris. The Supreme Court granted review on August 20, 2025 (S291827). Until it rules, Cash is persuasive-only under rule 8.1115(e)(1), the published split remains live, and the smart fee motion is built to win under either standard — starting with a written request for specific findings.

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…

The California Supreme Court holds that Labor Code §1102.6 — not McDonnell Douglas — governs §1102.5 whistleblower-retaliation claims: the employee need only show protected activity was a contributing factor, shifting to the employer the clear-and-convincing burden of proving it would have acted the same anyway.

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.

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.

Government Code section 12965(b) governs both fee and cost awards in FEHA actions and makes them discretionary under the asymmetric Christiansburg standard: a prevailing plaintiff ordinarily recovers fees and costs, but a prevailing defendant may recover them only if the action was objectively frivolous, unreasonable,…

In Salas v. Sierra Chemical Co. (2014) 59 Cal.4th 407, a production worker who had obtained his job with a false Social Security number sued under FEHA for disability discrimination and retaliation; after litigation began, the employer discovered the fraud and won summary judgment on after-acquired-evidence and unclean-hands theories. The California Supreme Court reversed. It held that Senate Bill No. 1818 (Gov. Code § 7285; Civ. Code § 3339; Lab. Code § 1171.5) extends FEHA's remedies to workers “regardless of immigration status,” and that federal immigration law (IRCA, as read in Hoffman Plastic) does not preempt those state remedies except as to lost-pay damages for the period after the employer discovers the worker's ineligibility. Neither after-acquired evidence nor unclean hands is a complete defense; both bear on the remedy, not on liability.

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.

Neither Labor Code section 1194 nor section 218.5 authorizes an award of attorney fees to a party that prevails on a section 226.7 claim; such claims are not actions for the nonpayment of minimum wages or overtime (§1194) and are not the kind of nonpayment-of-wages action that triggers §218.5 fee-shifting, so each…

A trial court has discretion to deny or reduce a FEHA fee award when the plaintiff’s recovery is modest and the case could have been litigated as a limited civil case; where the fees sought are grossly disproportionate to a minor recovery (here, the judgment could have been rendered in a limited civil case), the court…

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.

In a mixed legal-equitable trial, the First District held that a judge must follow a jury's factual findings on the legal claims when fashioning equitable relief on common facts — yet may independently resolve an equitable defense such as estoppel that turns on facts the jury never decided. Hoopes v. Dolan affirmed a defense judgment and supplies the procedural architecture for sequencing and trying equitable affirmative defenses alongside a jury verdict — a structure FEHA practitioners invoke when an employer raises equitable defenses.

Attorney fees awarded under section 12965 belong to the attorneys whose services earned them, except to the extent the attorneys and client have entered an enforceable agreement providing otherwise; the portion of a statutory fee award exceeding fees the client already paid does not belong to the client by default.

Statutory attorney fees are calculated by the lodestar method — the reasonable hours expended multiplied by a reasonable hourly rate — and the lodestar may be adjusted by a multiplier based on factors including the contingent risk of the representation, the novelty and difficulty of the issues, the skill displayed,…

A jury found Rosie Thompson, a human-resources director, was constructively discharged in retaliation for opposing employment practices she reasonably believed unlawful. The Court of Appeal affirmed the verdict and the full damages award, holding the after-acquired-evidence defense — an equitable doctrine akin to unclean hands — limits relief only where the employer proves the employee in fact would have been terminated for the later-discovered conduct, a burden Tracor failed to meet.

An undocumented assembler bought false papers to get hired, then sued for relentless sexual harassment. The employer's only defense was after-acquired evidence of her document fraud. Following McKennon, the Court of Appeal reversed: after-acquired evidence is no complete bar to a FEHA harassment claim, an undocumented worker keeps full employment-law protection while employed, and the defense's factual predicate — whether the employer in fact would have fired her — is a jury question.

A married couple fired by a law firm sued for wrongful termination, but the firm discovered during litigation that both had concealed felony convictions. The Court of Appeal affirmed summary judgment: their at-will acknowledgments doomed the contract claims, and the after-acquired-evidence doctrine barred the statutory and public-policy claims because the Camps had misrepresented a government-imposed job qualification, leaving them unlawfully unqualified for the position. Camp marks the point where after-acquired evidence shifts from limiting remedies to barring recovery outright.

In McKennon v. Nashville Banner Publishing Co. (1995) 513 U.S. 352, a 62-year-old secretary discharged in what the employer conceded for summary-judgment purposes was age discrimination admitted in deposition that she had copied confidential company documents during her final year. The lower courts held this after-acquired evidence barred all ADEA relief. A unanimous Supreme Court, per Justice Kennedy, reversed. Such evidence does not bar liability — the ADEA violation that prompted the discharge cannot be disregarded — but it bears on the remedy: as a general rule it forecloses reinstatement and front pay, and back pay runs only from the date of the unlawful discharge to the date the employer discovered the wrongdoing. And the employer must first prove the wrongdoing was so severe that it would in fact have discharged the employee on that ground alone.

A 10-year employee sued for wrongful discharge and age discrimination; the employer then discovered application misrepresentations made nearly a decade earlier and won summary judgment on the theory that the fraud forfeited all remedies. The Court of Appeal reversed, declining to adopt a blanket rule that material application falsification is a complete defense to a claim the employer did not know about when it fired the worker. The first published California decision on the point, Cooper anticipated the Supreme Court's McKennon by less than a year.

In Lakin v. Watkins Associated Industries (1993) 6 Cal.4th 644, a unanimous California Supreme Court resolved three recurring procedural and damages questions: a postjudgment order denying discovery-sanction (cost-of-proof) attorney fees is separately appealable; a personal-injury plaintiff bears the burden of proving which portion of a general award is “damages for personal injury” before claiming Civil Code section 3291 prejudgment interest; and that interest never accrues on punitive damages. The court reversed the Court of Appeal and remanded.

Punitive damages are recoverable under the FEHA in a court action for intentional employment discrimination; the statute’s remedial scheme does not limit a plaintiff to the relief the administrative agency could award, so the full range of tort-type remedies, including punitive damages, is available.