California employment case index

In Western Air Lines, Inc. v. Criswell (1985) 472 U.S. 400, the Supreme Court adopted the two-part age-BFOQ test for the Age Discrimination in Employment Act: the age limit must be reasonably necessary to the essence of the employer's business, and the employer must show either reasonable cause to believe that all or substantially all older workers cannot perform the job safely or that it is impossible or highly impractical to assess older employees individually. The Court rejected a deferential “rational basis” standard.

A worker fired nine months into his vacation year was denied every day of accrued vacation pay because his employer's policy made eligibility turn on still being employed on his anniversary date – a rule it had applied to roughly 300 departing employees. A unanimous Supreme Court held the policy could not defeat the right. Vacation pay is not a gratuity but deferred wages earned by the year's labor, so a proportionate right to it vests as the work is performed, exactly as pension rights vest on acceptance of employment. An anniversary requirement is at most a condition subsequent, and Labor Code section 227.3 forbids an employer policy from turning that condition into a forfeiture of what has already been earned.