California employment case index

A former Academy Mortgage employee won a False Claims Act qui tam case after the government declined to intervene, and her counsel obtained a fee award enhanced by a 1.75 lodestar multiplier. The Ninth Circuit reverses the enhancement: above-lodestar multipliers are reserved for the “rare and exceptional” case, cannot rest on factors already in the lodestar, and require a reviewable methodology.

Quach v. California Commerce Club, Inc.California abandons its arbitration-specific rule requiring proof of prejudice to establish that a party waived the right to compel arbitration; waiver is now governed by the same general contract principles — proof by clear and convincing evidence of an intentional relinquishment — that apply to any other contractual right.Quach v. […]

In Naranjo II (2024) 15 Cal.5th 1056, the California Supreme Court holds that an employer’s objectively reasonable, good-faith belief that its wage statements complied with the law defeats both Labor Code § 226 penalties (no “knowing and intentional” violation) and § 203 waiting-time penalties (no “willful” failure) — harmonizing the two penalty statutes around a common good-faith defense.

Naranjo v. Spectrum Security Services, Inc. (Naranjo I) Premium pay owed for missed meal and rest breaks under Labor Code section 226.7 constitutes “wages,” so it must be reported on wage statements under section 226 and is subject to waiting-time penalties under section 203 when not timely paid at separation. Naranjo v. Spectrum Security Services, […]

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.