California employment case index

Tipped employees won preliminary certification of a nationwide FLSA collective in Arizona, and the district court authorised notice to out-of-state servers because one Arizona plaintiff had sued. The Ninth Circuit held that theory wrong, joining four circuits against the First to hold that Bristol-Myers Squibb applies in FLSA collective actions: where jurisdiction is specific, each opt-in plaintiff's claim must bear its own connection to the forum. The panel simultaneously preserved the Campbell two-step and refused to require pre-notice rulings on absent employees' arbitration agreements — a split decision whose wins and losses both reshape forum strategy in hybrid wage cases.

A district court remanded a California wage-and-hour class action on its own motion because the removing employer had not produced evidence justifying the violation rate behind its $15 million amount-in-controversy figure. The Ninth Circuit vacated: a CAFA defendant may rely on a chain of reasoning built from assumptions tethered to the complaint, and cannot fairly be asked to prove violations it denies ever occurred. Ibarra still bites where the defendant's reading of the pleading is unreasonable – but not merely because a lower rate was equally plausible. The uncomfortable corollary for plaintiffs is that vague frequency language such as at times is now a jurisdictional concession made at the drafting table.

A class of 1,500 customer service managers was denied certification because the trial court believed Labor Code section 2802 liability turned on each employee's own cell phone plan and on who actually paid the bill. Division Two reversed and stated the rule in its opening sentence: when employees must use personal cell phones for work-related calls, the employer must reimburse them a reasonable percentage of the bill, whether the plan is limited or unlimited. Whether a third party paid, and whether the employee changed plans, are irrelevant – plan details go to damages, not liability. The disposition is a reversal of a certification denial, not a merits judgment.

Harte-Hanks paid outside sales representatives higher salaries and commission rates than inside representatives and treated the difference as reimbursement for their automobile expenses. The California Supreme Court held the practice permissible in principle, but only where the employer establishes a means to identify which portion of overall compensation is intended as reimbursement and that portion fully covers expenses actually and necessarily incurred. Section 2804 bars any agreement that waives full reimbursement – a holding that unravelled the trial court's denial of class certification.