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.

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.

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.

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.

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. 411Parallel citations: 142 S.Ct. 1708; […]

Arbitration agreements providing for individualized proceedings — including class- and collective-action waivers in the employment context — are enforceable under the FAA, and the NLRA does not override the FAA or render such agreements unlawful; courts must enforce the agreements according to their terms.

A provision in a predispute arbitration agreement that waives the right to seek public injunctive relief in any forum is contrary to California public policy and unenforceable (the “McGill rule”); and because that rule applies to contracts generally and does not single out arbitration, the FAA does not preempt it.

In Bareno v. San Diego Community College District (2017) 7 Cal.App.5th 546, the Fourth District reversed summary judgment for the employer on a CFRA retaliation claim, holding that the 30-day advance-notice rule does not apply when the need for medical leave is unforeseeable — notice need only be given “as soon as practicable” — and that whether an employee sufficiently requested leave and supplied adequate certification is a question of fact. The employer’s decision to treat the employee’s medical absences as a “voluntary resignation,” coming virtually immediately after she sought leave, raised triable issues of retaliatory causation.

An employee who cannot work under a particular supervisor because of anxiety and stress tied to that supervisor’s ordinary oversight has no disability under FEHA. In Higgins-Williams, the Third District affirmed summary judgment for Sutter on that single ground, which dissolved the plaintiff’s discrimination, accommodation, retaliation, and wrongful-termination claims, while remanding only the cost award under Williams v. Chino Valley.

The arbitrator’s award was upheld. Under the narrow standard of review governing arbitration awards, the court declined to decide whether the “honest belief” defense applies to CFRA claims; even assuming the arbitrator erred in invoking it, the error did not deprive the employee of an unwaivable statutory right, so…

Iskanian v. CLS Transportation (2014) 59 Cal.4th 348 holds that class-action waivers in employment arbitration agreements are enforceable after Concepcion (abrogating Gentry), but a predispute waiver of a representative PAGA action is contrary to public policy and not preempted by the FAA, because a PAGA claim belongs to the state.

Concepcion preempts a categorical, arbitration-specific rule that a Berman-hearing waiver is per se unconscionable; but generally applicable unconscionability doctrine survives, and an arbitration agreement remains unenforceable if it is unreasonably one-sided. The court concluded this agreement’s waiver was markedly…

In Olofsson v. Mission Linen Supply (2012) 211 Cal.App.4th 1236, the First District held that an employer’s regulatory duty to respond to a CFRA leave request within ten calendar days is not a duty to grant or deny it within that window. Affirming a defense judgment, the court ruled substantial evidence supported findings that the employer neither misrepresented that a route driver’s family leave was approved nor stayed silent when it had a duty to speak, even though it disclosed his ineligibility — 175 to 176 hours short of the 1,250-hour threshold — only the day before he left to care for his mother.

The Court of Appeal reversed a $356,000 CFRA judgment, holding that the right to reinstatement to the same or a comparable position expires at the end of the 12-week protected leave — so an employee who returned after 19 weeks had no interference claim — and that her retaliation claim failed for lack of evidence rebutting the County’s reorganization rationale.

The FAA preempts the Discover Bank rule. A state rule that conditions the enforceability of an arbitration agreement on the availability of classwide arbitration interferes with the fundamental attributes of arbitration and stands as an obstacle to the FAA’s objective of enforcing arbitration agreements according to…

An employee fired under a no-fault attendance policy after a pancreatitis hospitalization sued under FEHA, CFRA, and Tameny. The Court of Appeal affirmed summary judgment on the FEHA disability claims — telling the employer he was “sick” or hospitalized did not give notice of a disability — but reversed on CFRA and the related Tameny claim, holding that while “calling in sick” alone is insufficient CFRA notice, hospital records showing inpatient care can constitute a request for CFRA-qualifying leave, shifting to the employer the burden to inquire and designate, and that causation does not require the decision-maker to know the absences were protected.

The California Supreme Court held that a CFRA employee’s simultaneous performance of a similar part-time job for another employer is strong but not conclusive evidence that she could perform the functions of her own full-time position. Because the phrase “functions of the position of that employee” means the job this employer assigned — not job functions “generally” — whether Lonicki had a serious health condition disabling her from her Sutter job remained a triable issue, and summary judgment was reversed. The Court separately held that an employer’s failure to invoke the second- and third-opinion dispute-resolution procedure does not estop it from litigating the medical merits.

Reversing summary judgment, the Court of Appeal held that an employee need not mention the CFRA to request protected medical leave — and that an employer that never gave notice of CFRA rights, rejected a chiropractor's certification out of hand, and refused to communicate with the employee's designated representatives could not defeat his interference, retaliation, disability discrimination, and wrongful termination claims as a matter of law.

The Sixth District affirmed summary judgment for the City, holding that a five-year pattern of stripping a female employee's coveted technical duties was "a collection of isolated employment decisions" that had acquired permanence by 1996 under Richards v. CH2M Hill — and that a biased supervisor's sexist remarks could not show pretext where he neither knew of her candidacy nor took part in the challenged hiring.

In Pang v. Beverly Hospital, Inc. (2000) 79 Cal.App.4th 986, the Court of Appeal drew the first California line around what it means to take family leave “to care for” a parent. A physical therapist fired after flying to New York to help her independent, 81-year-old mother pack and relocate to a one-level apartment was held not to be “caring for” her mother under the Family Rights Act: her participation had to be “warranted” during “a period of the treatment or supervision” of her mother, and packing boxes and directing movers was not. Affirming judgment on the pleadings, the court confirmed that courts — not the agency — bear ultimate responsibility for construing CalFRA.