California employment case index

Six BART employees who objected on religious grounds to the agency's COVID-19 vaccine mandate were told they could not be accommodated, lost their jobs, tried the case, and won $7,824,580. The Ninth Circuit affirmed, and in doing so gave the employer's undue-hardship defence a shape it had not previously had in a tried case: it is not enough to prove that vaccination was the most effective available measure, because an employer must show the alternatives were "not only less safe, but less safe by a 'substantial,' 'excessive,' or 'unjustifiable' margin." Reliance on public-health guidance is permissible but not dispositive — and here the guidance BART said it relied on was never put in the record, leaving the agency with two retained experts the jury was free to discount. The panel read its own recent vaccine-mandate decisions, Petersen v. Snohomish Regional Fire & Rescue and Williams v. Legacy Health, as resting on their records rather than on the mandate itself: a transit agency staffing a utility worker, a ticket clerk behind bullet-proof glass and a technician who worked ninety percent alone is not a fire department or a hospital. Most consequentially for practitioners, the court held that undue hardship is a fact-specific inquiry ordinarily reserved to the jury, resolvable as a matter of law only where the burden is so obvious that reasonable minds could not differ. Front pay to one plaintiff who had elected it below was not plain error. The conditional cross-appeal on free exercise was mooted and not reached — though the author of the opinion wrote separately, at length, to say the district court's analysis of it was wrong.

Luis Betanco delivered Living Spaces furniture from the retailer's California distribution centers to California customers and never crossed a state line. In a published decision filed June 25, 2026, the First District held he is still a 'transportation worker' exempt from the Federal Arbitration Act, because he was actively engaged in the interstate transportation of goods even though he made retail — not wholesale — deliveries. The furniture was inevitably destined from the outset of its interstate journey to his customers, so it never left the interstate stream even though it paused in a California warehouse. Because the FAA does not reach a section 1-exempt worker, Labor Code section 229 kept his statutory wage claims in court, and his representative PAGA claims survived under Adolph v. Uber Technologies. The order was affirmed.

Nine hospital-system employees sought religious exemptions from a COVID-19 vaccination requirement and sued under Title VII when they were denied. The Ninth Circuit affirms judgment for the employer: after Groff v. DeJoy, undue hardship means a “substantial” burden — including realistic health, safety, and staffing costs — and exempting unvaccinated clinical staff during the Delta surge met that standard.

Marshalls moved to compel arbitration of the individual component of a single-count PAGA action under a 2014 arbitration agreement, relying on Viking River. Division Four affirmed the denial on pure contract grounds: the parties would have had to be clairvoyant to anticipate a distinction the Supreme Court would not draw for another eight years. The court expressly declined to enter the headless-PAGA dispute, and the authoring justice wrote separately at length questioning whether Viking River's federally imposed claim-splitting rule is constitutionally sound.

Lauren Brown filed the fifth of five overlapping PAGA actions against the same restaurant operator. While her case sat stayed, the employer settled globally with an earlier plaintiff, and the trial court then granted judgment on the pleadings. Division Eight affirmed. The only contested question it reached was whether the settling plaintiff's failure to wait the full 65 days after her amended agency notice destroyed the settlement's preclusive effect – and the court held it did not, because nothing extends the waiting period to amended notices and the agency itself had accepted the settlement. Brown also lacked standing for violations postdating her 2018 separation.

World Vision revoked a job offer to a customer-service applicant after learning she was in a same-sex marriage. The Ninth Circuit held the ministerial exception barred her Title VII and WLAD claims, because — viewed in the context of World Vision’s religious mission — CSRs perform “vital religious duties” by communicating the faith and praying with donors. A striking extension of the exception’s functional reach to an entry-level, remote position.

Marlean Ames, a heterosexual woman, lost a promotion to a lesbian candidate, then was demoted and replaced by a gay man. The Sixth Circuit threw out her Title VII case because she had not shown “background circumstances” suggesting her employer was the unusual one that discriminates against the majority. A unanimous Supreme Court vacated: Title VII protects “any individual,” and its prima facie standard does not vary with the plaintiff’s group. Justice Thomas, joined by Justice Gorsuch, concurred to question whether McDonnell Douglas belongs at summary judgment at all — an invitation with consequences for FEHA practice under Guz.

Overlapping PAGA actions against one employer are now routine, and so is the race to settle. Turrieta v. Lyft decided what the losing racer may do about it: nothing. A non-settling plaintiff suing as the state's deputy on identical claims has no authority to intervene in the settling plaintiff's action, to require the court to hear objections, or to move to vacate the judgment — and Moniz v. Adecco (2025) holds that recasting the asserted stake as personal rather than sovereign changes none of it. What survives is not a voice in the first case but a defence in the second. Under Arias a PAGA judgment does bind non-party aggrieved employees; under LaCour v. Marshalls that preclusion must be proved, and a release reaching past the settling plaintiff's own agency authority binds her alone. The practical consequence is that the leverage has moved to the LWDA notice letter, which now measures what a PAGA plaintiff can ever release.

A Postmaster of Chinese ethnicity was demoted after coworkers targeted her with complaints her supervisor believed were racially motivated, and the demotion was confirmed by an official who reviewed only the paperwork. The Ninth Circuit reversed summary judgment, holding that replacement by a white man satisfied the McDonnell Douglas fourth element and that a genuine dispute existed over whether the confirming decision was “actually independent or influenced by subordinate bias” — a Ninth Circuit application of the cat’s-paw doctrine.

Does every PAGA action contain an individual claim an employer can compel to arbitration? The split the California Supreme Court will resolve.

The Ninth Circuit reversed summary judgment for the Bureau of Prisons, holding that a corrections lieutenant’s off-duty Instagram page targeting a prison psychologist — followed by more than a hundred coworkers — is part of the totality of the circumstances in a Title VII hostile-work-environment claim. There is no rule that only conduct inside the physical workplace counts, ‘especially in light of the ubiquity of social media,’ and the employer’s dismissive, ineffectual response can independently create a hostile environment.

Muldrow v. City of St. LouisA Title VII plaintiff challenging a discriminatory job transfer must show only “some harm” to a term or condition of employment — not a “significant” or “material” disadvantage.Muldrow v. City of St. Louis (2024) 601 U.S. 346Parallel citations: 144 S.Ct. 967; 218 L.Ed.2d 322. Supreme Court of the United States. […]

Between Viking River in June 2022 and Adolph in July 2023, federal courts across California dismissed the non-individual half of PAGA cases for want of standing, on the United States Supreme Court's reading of California law. In Johnson the Ninth Circuit says what to do about those dismissals while the case is still on appeal: affirm the order compelling arbitration of the individual PAGA claim, vacate the dismissal of the non-individual claims – not because the district court erred, but because the California Supreme Court has since corrected the state-law premise – and remand so the district court can apply Adolph. The panel also rejected the argument that Adolph cannot be reconciled with Viking River. Judge Lee concurred to flag what he called a lurking tension between Adolph's bifurcation procedure and the Federal Arbitration Act: if an arbitrator's findings in a low-stakes individual arbitration can bind in a high-stakes representative action, the economics of arbitration change. He saw no irreconcilable conflict on these facts, and explained why – which is also a map of how the argument will be made next time.

For three years the first move in every large PAGA defence was a motion to strike the claim as unmanageable. Estrada v. Royalty Carpet Mills ended that unanimously, and ended it structurally: the Supreme Court did not weigh the policy and come out against, it found that no California court had ever possessed such a power and declined to create one. The question since is what remains, and the answer is more than defendants expected and less than they wanted. Evidence limits, scope limits, witness control, consolidation and ordinary merits rulings all survive untouched, and in 2024 the Legislature put the first two into Labor Code section 2699, subdivision (p) in almost the court's own words — while pointedly leaving out the dismissal power. The word manageability appears nowhere in the statute. What is left open is narrow: a due-process authority of last resort that Estrada reserved and no published decision has yet defined.

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.

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.

California religious-accommodation litigation runs on two tracks that are routinely confused, and Groff v. DeJoy answers only one of them. Groff told the lower courts that the de minimis gloss they had drawn from a single line of Hardison does not establish undue hardship, and that an employer must instead show substantial increased costs in relation to the conduct of its particular business — while expressly declining to adopt the ADA's "significant difficulty or expense" standard, which is the very phrase Government Code section 12926, subdivision (u) has long used to define undue hardship under FEHA. This analysis sets the two texts side by side, states precisely what Groff did and did not do to Hardison, traces the collective-bargaining limit through Soldinger, and then marks the point at which none of it matters: where the ministerial exception applies, it is an affirmative defence that removes the claim rather than a weight in the hardship calculus.

An Evangelical Christian postal worker who would not work Sundays sued under Title VII after being disciplined for declining Sunday Amazon deliveries. The Third Circuit, reading Hardison to require only 'more than a de minimis cost,' affirmed summary judgment for the employer. A unanimous Supreme Court vacated and clarified the standard: an employer that denies a religious accommodation must show that granting it would result in substantial increased costs in relation to the conduct of its particular business, not merely a more-than-trivial cost.

Eight warehouse workers alleged their employer let staff blast “sexually graphic, violently misogynistic” music for nearly two years over almost daily complaints. The Ninth Circuit vacated a Rule 12(b)(6) dismissal, holding that pervasive sexist content can create a Title VII hostile work environment even if it targets no one and offends both sexes — and that an employer’s “equal opportunity harasser” status “provides no escape hatch for liability.”

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…

An employer that fires an individual merely for being gay or transgender violates Title VII. Discrimination based on sexual orientation or gender identity necessarily entails discrimination because of sex, because it is impossible to discriminate against a person for being gay or transgender without taking the…

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…