California employment case index

The employee-non-solicitation provision was void under section 16600 because it restrained the individual defendants — recruiters whose profession is recruiting and placing nurses — from engaging in their chosen profession; applying Edwards, the court declined to use the older “reasonableness” analysis and held such…

Answering three questions certified by the Ninth Circuit, the California Supreme Court held that the “nature of the work” under the wage orders' seating provision refers to the tasks an employee performs at a given location – not to the whole job – and that whether the work reasonably permits sitting is an objective, totality-of-the-circumstances question in which employer business judgment and workplace layout are relevant but not dispositive. If the employer contends no suitable seat exists, it bears the burden of proving unavailability.

Citigroup let employees take part of their annual compensation as discounted restricted stock vesting only after two years; an employee who resigned early forfeited both the shares and the pay used to buy them. The California Supreme Court affirmed summary judgment for the company, holding that no earned wages remained unpaid on resignation. The decision agrees that restricted stock is a wage – so it turns on when incentive compensation is earned, not on characterization – and expressly refuses to extend Suastez's pro rata vacation-vesting rule to voluntary incentive programs.

Section 16600 voids contracts that restrain anyone from engaging in a lawful profession, trade, or business; Edwards’s noncompetition agreement was therefore invalid. California does not recognize the federal courts’ “narrow-restraint” exception — even a limited or partial restraint on practicing one’s profession is…