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.

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.

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.

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.

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.

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.

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.

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.

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. […]

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.

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 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. 411 Parallel citations: […]

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…