California employment case index

A firm filed a wage-and-hour class action duplicating one it had already filed elsewhere, then opposed a stay with a brief — drafted by a contract attorney using generative AI — full of nonexistent citations and at least eight fabricated quotations. The First District affirms $6,000 in section 128.7 sanctions: counsel of record bear ultimate responsibility for what they sign, and the duty to verify authority cannot be delegated to any form of technology.

Ask what California law says about rounding employees' time punches and the honest answer is that nobody knows. One Court of Appeal decision approved the practice in 2012, borrowing its standard from a federal regulation; it has never been overruled and still binds trial courts. But the Supreme Court has twice declined to adopt it, saying in Donohue that it "has never decided the validity of the rounding standard articulated in See's Candy I" — and then deciding that case on an assumption rather than an endorsement. Two Courts of Appeal have since rejected rounding where the employer captured exact minutes and underpaid anyway, and the Supreme Court granted review in both. The result is a genuine vacuum: the binding authority is the weakest, the strongest reasoning cannot bind, and the question sits with the Supreme Court in S277518. This piece sets out precisely what has been decided, what has not, and what to do in the meantime.

There is no California statute or case law authorizing or prohibiting employee time rounding, so Division One borrowed the federal rule: an employer may round punch times to the nearest tenth of an hour if the policy is fair and neutral on its face and, as applied, does not fail over time to compensate employees for the time they actually worked. The posture is narrow – a writ vacating summary adjudication on two of the employer's affirmative defenses, with the court expressly leaving open whether either side will prevail. The plaintiff's expert lost the case by treating the employer's separate grace-period policy as if it were rounding. Whether neutral rounding survives at all is now pending before the California Supreme Court in Camp v. Home Depot, S277518.

In McDonald v. Santa Fe Trail Transportation Co. (1976) 427 U.S. 273, two white employees were discharged for participating in the theft of antifreeze from a shipment in their employer's care, while a Black employee charged with the same misconduct was retained. The Supreme Court held — unanimously as to Title VII, and seven-to-two as to 42 U.S.C. § 1981 — that both statutes protect against racial discrimination directed at any race, including white persons. An employer “may justifiably refuse to rehire one who was engaged in unlawful, disruptive acts against it, but only if this criterion is applied alike to members of all races.” The judgment dismissing the complaint was reversed and the case remanded.