California employment case index

Martinez v. Combs (2010) 49 Cal.4th 35 holds that the IWC wage orders’ own definitions govern who is an “employer” for minimum-wage claims: to “employ” means (a) to exercise control over wages, hours, or working conditions, (b) to suffer or permit to work, or (c) to engage in a common-law employment relationship. The produce merchants were not the workers’ employers.

The section 226.7 meal/rest payment is a wage (premium pay), not a penalty, and is therefore governed by the three-year statute of limitations applicable to wage claims rather than the one-year period for penalties.

“Discharge” under sections 201 and 203 includes not only firing but also releasing an employee upon completion of the particular job assignment or time duration for which he or she was hired; final wages are then immediately due, and a willful failure to pay triggers waiting-time penalties.

California does not permit wage averaging: the minimum-wage standard applies to each hour worked, and an employer must pay at least the minimum wage for every compensable hour; it cannot use higher pay for some hours to offset unpaid or sub-minimum hours.

Sav-On Drug Stores v. Superior Court (2004) 34 Cal.4th 319 holds that wage-and-hour class certification is reviewed for abuse of discretion and turns on whether the plaintiffs’ theory of recovery is amenable to common proof — not on the existence of individual issues or the ultimate merits. The Court reinstated certification of a manager-misclassification class.

Morillion v. Royal Packing Co. (2000) 22 Cal.4th 575 holds that the wage order’s “subject to the control of an employer” and “suffered or permitted to work” clauses are independent: an employee under the employer’s control is paid even when not working. Compulsory travel on employer-mandated buses is compensable “hours worked,” and the federal Portal-to-Portal Act does not govern California law.

S.G. Borello & Sons, Inc. v. Department of Industrial Relations (1989) 48 Cal.3d 341 sets California’s multifactor control test for employee vs. independent-contractor status — the right to control the manner and means of the work, plus secondary factors, applied in light of the statute’s protective purpose. It still governs the Assembly Bill 5 exemptions after Dynamex.