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.

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.

There is no California statute or case law authorizing or prohibiting employee time rounding, so Division One borrowed the federal rule: an employer may round punch times to the nearest tenth of an hour if the policy is fair and neutral on its face and, as applied, does not fail over time to compensate employees for the time they actually worked. The posture is narrow – a writ vacating summary adjudication on two of the employer's affirmative defenses, with the court expressly leaving open whether either side will prevail. The plaintiff's expert lost the case by treating the employer's separate grace-period policy as if it were rounding. Whether neutral rounding survives at all is now pending before the California Supreme Court in Camp v. Home Depot, S277518.