California employment case index

Luis Betanco delivered Living Spaces furniture from the retailer's California distribution centers to California customers and never crossed a state line. In a published decision filed June 25, 2026, the First District held he is still a 'transportation worker' exempt from the Federal Arbitration Act, because he was actively engaged in the interstate transportation of goods even though he made retail — not wholesale — deliveries. The furniture was inevitably destined from the outset of its interstate journey to his customers, so it never left the interstate stream even though it paused in a California warehouse. Because the FAA does not reach a section 1-exempt worker, Labor Code section 229 kept his statutory wage claims in court, and his representative PAGA claims survived under Adolph v. Uber Technologies. The order was affirmed.

Marshalls moved to compel arbitration of the individual component of a single-count PAGA action under a 2014 arbitration agreement, relying on Viking River. Division Four affirmed the denial on pure contract grounds: the parties would have had to be clairvoyant to anticipate a distinction the Supreme Court would not draw for another eight years. The court expressly declined to enter the headless-PAGA dispute, and the authoring justice wrote separately at length questioning whether Viking River's federally imposed claim-splitting rule is constitutionally sound.

Lauren Brown filed the fifth of five overlapping PAGA actions against the same restaurant operator. While her case sat stayed, the employer settled globally with an earlier plaintiff, and the trial court then granted judgment on the pleadings. Division Eight affirmed. The only contested question it reached was whether the settling plaintiff's failure to wait the full 65 days after her amended agency notice destroyed the settlement's preclusive effect – and the court held it did not, because nothing extends the waiting period to amended notices and the agency itself had accepted the settlement. Brown also lacked standing for violations postdating her 2018 separation.

The Department of Consumer Affairs refused to discuss settlement, refused to stipulate to an amendment, demurred, moved for summary adjudication, rejected a $600,000 section 998 offer and lost a six-week trial – and then appealed the $4,889,786.03 fee award that followed. Division Eight affirmed all of it: top-of-market Los Angeles rates supported by the trial judge's own observation of counsel, a 1.75 multiplier through verdict and 1.25 on the fee litigation, and two holdings with reach – that a fee payable from public funds does not bar an enhancement, and that Ketchum's rule does not apply to FEHA fees, which section 12965 makes discretionary and therefore contingent until the final fee order.

Does every PAGA action contain an individual claim an employer can compel to arbitration? The split the California Supreme Court will resolve.

A jury found that the Department of State Hospitals discriminated against Ashley Howell because of a mental disability, and awarded her lost earnings, lost health insurance, and nothing for pain and suffering. By the end of the appeal the insurance award was gone, the zero pain-and-suffering verdict stood, and a $1.75 million attorney fee request had been reduced to $135,102. The insurance award fell because Howell proved an obligation rather than a loss: she introduced a premium invoice she never paid, and she bought no replacement coverage, so there was nothing to compensate. The fee award survived because the trial court could not audit block-billed hours and because the request had grown more than tenfold from counsel's own pretrial estimate. Howell's only appellate win was a remand to rule on the prejudgment interest nobody had opposed. This is an adverse decision, and its value to the plaintiff's bar is as a checklist of what the damages and fee record has to contain.

Between Viking River in June 2022 and Adolph in July 2023, federal courts across California dismissed the non-individual half of PAGA cases for want of standing, on the United States Supreme Court's reading of California law. In Johnson the Ninth Circuit says what to do about those dismissals while the case is still on appeal: affirm the order compelling arbitration of the individual PAGA claim, vacate the dismissal of the non-individual claims – not because the district court erred, but because the California Supreme Court has since corrected the state-law premise – and remand so the district court can apply Adolph. The panel also rejected the argument that Adolph cannot be reconciled with Viking River. Judge Lee concurred to flag what he called a lurking tension between Adolph's bifurcation procedure and the Federal Arbitration Act: if an arbitrator's findings in a low-stakes individual arbitration can bind in a high-stakes representative action, the economics of arbitration change. He saw no irreconcilable conflict on these facts, and explained why – which is also a map of how the argument will be made next time.

Estrada v. Royalty Carpet Mills, Inc. (2024) 15 Cal.5th 582 holds that trial courts lack inherent authority to strike a PAGA claim as unmanageable, even if it is complex or time-intensive. Manageability is a class-action requirement that does not apply to PAGA; complexity must be handled through ordinary case-management tools, not dismissal.

Adolph v. Uber Technologies, Inc. (2023) 14 Cal.5th 1104 holds that a PAGA plaintiff whose individual claims are compelled to arbitration retains standing as an “aggrieved employee” to litigate the non-individual representative claims in court — California’s answer to the standing question left open by Viking River.

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…

Settling and dismissing individual Labor Code claims does not strip an employee of standing to pursue a PAGA claim. PAGA standing depends on being an “aggrieved employee” — someone employed by the alleged violator against whom one or more Labor Code violations were committed — not on maintaining an unredressed…

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.

Government Code section 12965(b) governs both fee and cost awards in FEHA actions and makes them discretionary under the asymmetric Christiansburg standard: a prevailing plaintiff ordinarily recovers fees and costs, but a prevailing defendant may recover them only if the action was objectively frivolous, unreasonable,…

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.

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.

Arias v. Superior Court (2009) 46 Cal.4th 969 holds that a representative PAGA action for civil penalties need not satisfy class-action requirements, while a representative UCL claim for the same Labor Code violations must — and that a non-class PAGA action does not violate the employer’s due-process rights.

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.

Attorney fees awarded under section 12965 belong to the attorneys whose services earned them, except to the extent the attorneys and client have entered an enforceable agreement providing otherwise; the portion of a statutory fee award exceeding fees the client already paid does not belong to the client by default.

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.