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 former UPS seasonal driver sued for wage violations; the district court compelled arbitration of her individual claims but refused to decide whether the FAA or state arbitration law governed, reasoning the result was the same. The Ninth Circuit grants a writ of mandamus: under New Prime, the court — not an arbitrator — must decide whether the FAA section 1 transportation-worker exclusion applies before compelling arbitration.

An employee with an undisclosed bipolar diagnosis was fired after two episodes of erratic, irrational behavior at work, then sued Target under FEHA. The Second District affirms summary judgment: employer knowledge is a prerequisite to FEHA disability liability, and it is imputed only when disability is the “only reasonable interpretation” of the conduct — not where intoxication, medication, or sleep deprivation could equally explain it.

A staffing agency hired a worker under an arbitration agreement and placed him at a client; when the placement ended, the client hired him directly, and he later sued the client over that direct-employment period. The First District affirms denial of arbitration: the client was not a party or “affiliate” of the agency, the claims fell outside the agreement’s scope, and the worker was not equitably estopped — a nonsignatory cannot simply borrow a staffing agency’s arbitration clause.

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.

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.

After two of four bellwether arbitrators found a travel-nursing agency’s arbitration agreements invalid, a district court used non-mutual offensive collateral estoppel to void 255 other employees’ separate agreements. The Ninth Circuit reverses: the FAA guarantees individualized, one-on-one proceedings, and forbids using other arbitrators’ rulings to invalidate other parties’ agreements wholesale.

Two Chico State physics professors sued the CSU Trustees for retaliation, alleging a sham investigation and sabotage of their move to a new university after they reported harassment. The Trustees moved to strike the claims under the anti-SLAPP statute as “based in part” on protected speech. The Third District affirms denial: a movant must analyze each claim element-by-element and identify which acts are protected — “based in part” is not enough.

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.

The California Supreme Court holds that illegible, one-sided arbitration print is procedural (not substantive) unconscionability — and that no presumption favors arbitration.

Twenty-two months into a wage-and-hour class action, TEKsystems rolled out a new mandatory arbitration agreement to the recruiter class members and moved to compel arbitration. The Ninth Circuit affirms denial of that motion: Rule 23(d) lets a district court refuse to enforce an agreement obtained through misleading, mid-litigation communications that threaten the fairness of the class action — the FAA gives arbitration no special protection.

A coworker’s off-site sexual advances were not work-related and not imputable to the employer — yet the Fifth District held the employee still stated a FEHA hostile-work-environment claim, because the employer’s refusal to act and its HR representative’s mocking response could independently alter the workplace in an objectively severe manner. A pleading-stage reversal that imports the Ninth Circuit’s totality-of-the-circumstances, employer-response framework (Fuller, Okonowsky) into California law.

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.

Must a California employer accommodate an employee who is not disabled but who cares for someone who is? Castro-Ramirez said in 2016 that FEHA “may reasonably be interpreted” to require it — and expressly declined to decide. Nine years on, no published California decision has answered, the Civil Rights Council’s 2020 request for public input produced no regulation, and CACI 2547 still calls the element optional. Meanwhile five federal district courts — Castro v. Classy, McVay, and 2025’s Acosta, Head, and De Wit — have all held that failure-to-accommodate and interactive-process claims may rest on associational disability. This analysis maps the statutory argument, the unpublished contrary authority, and how to plead the caregiver’s claim while the question stays open.

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.

An LAPD captain never witnessed officers passing around a fake nude photo of her and was never confronted to her face — yet the Second District affirmed a $4 million FEHA verdict, holding that her secondhand knowledge of the department-wide circulation, and the LAPD’s refusal to stop it, supplied substantial evidence of a severe or pervasive hostile work environment. A leading application of Government Code section 12923.

After a harbor patrol officer’s on-duty accident left him unable to work, the Port San Luis Harbor District told him retirement was his “single option” — then denied his CalPERS disability-retirement application and terminated him on a resignation theory it later admitted was false. Division Six affirmed summary judgment on his FEHA claim anyway: denial of disability-retirement payments is not an adverse employment action, because retirement benefits begin when employment ends, and a claimant who cannot perform his essential duties is not a “qualified individual” under Green. The remedy for a wrongful denial is an appeal to the Office of Administrative Hearings and administrative mandamus — a route Lowry lost by following a repealed procedure.

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.

Charter’s mandatory arbitration agreement directed employees’ claims into arbitration while carving out the claims Charter itself would bring, compressed FEHA filing to the one-year administrative window, and made anyone who unsuccessfully resisted arbitration pay the fees incurred to compel it. The Supreme Court held all three terms substantively unconscionable — but validated the four-deposition discovery cap, disapproving the line of cases that judged discovery limits by a particular plaintiff’s later needs. On remedy, the court rejected clause-counting: severance is a qualitative, totality inquiry under Armendariz, and the refusal to enforce was reversed and remanded for that analysis.

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.

Delivery drivers sued for wage and misclassification violations; their employer moved to compel arbitration and dismiss. A unanimous Supreme Court held that FAA § 3 gives a district court no discretion to dismiss a suit it sends to arbitration when a party requests a stay — ‘shall’ means ‘shall’ and ‘stay’ means ‘stay.’ Staying rather than dismissing preserves the parties’ return ticket to court if arbitration breaks down, a point with real stakes for employees whose employers later default on arbitration fees.

A unanimous Supreme Court held that the Federal Arbitration Act’s § 1 exemption for transportation workers turns on what a worker does, not the industry the employer occupies. Bakery-goods delivery drivers who sued for wage violations therefore could not be forced into arbitration merely because their employer sells bread rather than transportation. The decision resolves a circuit split and completes the § 1 line running from Circuit City through Saxon, while expressly leaving open whether these particular distributors qualify as transportation workers at all.

In the first California decision to articulate the elements of a reasonable-accommodation claim under the Pregnancy Disability Leave Law (Gov. Code, § 12945, subd. (a)(3)(A)), the Court of Appeal held that a plaintiff must prove a pregnancy-related condition, a request made on her health care provider's advice, the employer's refusal of a reasonable accommodation, and that she could perform the essential functions of the job with that accommodation. Although section 12945 affords protections over and above section 12940, none entitles an employee to a job she cannot perform. Judgment for the employer affirmed.

A Rite Aid district manager sent a staff pharmacist lewd photos in a late-night, off-site text exchange that grew out of a friendship predating her employment. The Fifth District affirmed summary judgment for the employer, holding that FEHA strict liability for supervisor harassment attaches only when the supervisor acts “in the capacity of supervisor,” not where the conduct arises from a completely private relationship — and that the plaintiff, invited back after the harasser was fired, was not constructively discharged.

A unanimous Court of Appeal reversed summary judgment for Kaiser, holding that even though the employer granted every accommodation the employee requested, it could still be liable for failing to accommodate and failing to engage in the interactive process because, through her supervisor, it knew of but never provided a needed lighter-tasks accommodation. The court also reinstated the disability-discrimination and retaliation claims on a cat’s-paw theory.

The Ninth Circuit held the Federal Arbitration Act preempts AB 51 (Labor Code § 432.6), California's attempt to ban mandatory employment arbitration, because a state rule that burdens the formation of arbitration agreements stands as an obstacle to the FAA.

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…

Morgan v. Sundance, Inc.A court may not condition waiver of the right to arbitrate on a showing that the opposing party was prejudiced; the FAA’s “policy favoring arbitration” places arbitration agreements on equal footing with other contracts and does not authorize arbitration-specific procedural rules.Morgan v. Sundance, Inc. (2022) 596 U.S. 411Parallel citations: 142 S.Ct. 1708; […]

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.

The Court of Appeal held that a plaintiff suing for failure to engage in the interactive process under Government Code section 12940, subdivision (n) must prove a reasonable accommodation was actually available. Substantial evidence supported finite leave as an available accommodation for the plaintiff’s carpal-tunnel (wrist) injury, but none supported any accommodation for her later shoulder injury. Because the general verdict did not reveal which disability the jury relied on, the judgment was reversed for a limited retrial.

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.