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.

Nine hospital-system employees sought religious exemptions from a COVID-19 vaccination requirement and sued under Title VII when they were denied. The Ninth Circuit affirms judgment for the employer: after Groff v. DeJoy, undue hardship means a “substantial” burden — including realistic health, safety, and staffing costs — and exempting unvaccinated clinical staff during the Delta surge met that standard.

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.

World Vision revoked a job offer to a customer-service applicant after learning she was in a same-sex marriage. The Ninth Circuit held the ministerial exception barred her Title VII and WLAD claims, because — viewed in the context of World Vision’s religious mission — CSRs perform “vital religious duties” by communicating the faith and praying with donors. A striking extension of the exception’s functional reach to an entry-level, remote position.

Marlean Ames, a heterosexual woman, lost a promotion to a lesbian candidate, then was demoted and replaced by a gay man. The Sixth Circuit threw out her Title VII case because she had not shown “background circumstances” suggesting her employer was the unusual one that discriminates against the majority. A unanimous Supreme Court vacated: Title VII protects “any individual,” and its prima facie standard does not vary with the plaintiff’s group. Justice Thomas, joined by Justice Gorsuch, concurred to question whether McDonnell Douglas belongs at summary judgment at all — an invitation with consequences for FEHA practice under Guz.

A Postmaster of Chinese ethnicity was demoted after coworkers targeted her with complaints her supervisor believed were racially motivated, and the demotion was confirmed by an official who reviewed only the paperwork. The Ninth Circuit reversed summary judgment, holding that replacement by a white man satisfied the McDonnell Douglas fourth element and that a genuine dispute existed over whether the confirming decision was “actually independent or influenced by subordinate bias” — a Ninth Circuit application of the cat’s-paw doctrine.

The Ninth Circuit reversed summary judgment for the Bureau of Prisons, holding that a corrections lieutenant’s off-duty Instagram page targeting a prison psychologist — followed by more than a hundred coworkers — is part of the totality of the circumstances in a Title VII hostile-work-environment claim. There is no rule that only conduct inside the physical workplace counts, ‘especially in light of the ubiquity of social media,’ and the employer’s dismissive, ineffectual response can independently create a hostile environment.

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.

Muldrow v. City of St. LouisA Title VII plaintiff challenging a discriminatory job transfer must show only “some harm” to a term or condition of employment — not a “significant” or “material” disadvantage.Muldrow v. City of St. Louis (2024) 601 U.S. 346Parallel citations: 144 S.Ct. 967; 218 L.Ed.2d 322. Supreme Court of the United States. […]

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.

An Evangelical Christian postal worker who would not work Sundays sued under Title VII after being disciplined for declining Sunday Amazon deliveries. The Third Circuit, reading Hardison to require only 'more than a de minimis cost,' affirmed summary judgment for the employer. A unanimous Supreme Court vacated and clarified the standard: an employer that denies a religious accommodation must show that granting it would result in substantial increased costs in relation to the conduct of its particular business, not merely a more-than-trivial cost.

Eight warehouse workers alleged their employer let staff blast “sexually graphic, violently misogynistic” music for nearly two years over almost daily complaints. The Ninth Circuit vacated a Rule 12(b)(6) dismissal, holding that pervasive sexist content can create a Title VII hostile work environment even if it targets no one and offends both sexes — and that an employer’s “equal opportunity harasser” status “provides no escape hatch for liability.”

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. 411 Parallel citations: […]

An employer that fires an individual merely for being gay or transgender violates Title VII. Discrimination based on sexual orientation or gender identity necessarily entails discrimination because of sex, because it is impossible to discriminate against a person for being gay or transgender without taking the…

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.

UPS accommodated drivers hurt on the job, drivers with ADA disabilities, and drivers who lost their DOT certifications — but told pregnant driver Peggy Young she could not work under a 20-pound lifting restriction. The Supreme Court vacated summary judgment and built the governing framework for PDA accommodation claims: show the employer accommodated others similar in ability to work, and a jury may infer discrimination if the policies significantly burden pregnant workers and the employer’s reasons are not strong enough to justify it. In California, where the PDLL and FEHA impose affirmative accommodation duties, Young is the federal floor — essential in pure Title VII postures, rarely the lead theory at home.

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…

The Supreme Court held 5-4 that an employee is a “supervisor” for Title VII vicarious-liability purposes only if empowered to take tangible employment actions — hire, fire, demote, promote, transfer, or discipline. An employee who merely directs daily work is a co-worker, so the employer is liable only for negligence. The decision does not govern California’s FEHA, which defines “supervisor” more broadly and imposes strict liability for supervisor harassment.

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…

The Supreme Court’s foundational “cat’s paw” decision: an employer is liable when a biased supervisor performs an act intended to cause an adverse employment action that is a proximate cause of the ultimate decision — even if the formal decisionmaker had no discriminatory animus. A decisionmaker’s “independent investigation” does not automatically break the causal chain, especially when it credits the biased actor’s report without independently confirming the action was justified.

Title VII’s anti-retaliation provision is not limited to employer actions affecting the terms and conditions of employment or occurring at the workplace; it prohibits any employer action that a reasonable employee would have found materially adverse — that is, action that might well dissuade a reasonable worker from…

The Supreme Court's per curiam reversal holds that no reasonable person could believe a single offhand exchange violated Title VII and that timing alone proves retaliatory causation only when the employer's knowledge and the adverse action are "very close" — the twin rules that now anchor nearly every FEHA retaliation summary judgment motion.

A world-class AIDS researcher — the only full-time, non-Caucasian faculty member in his department, and the only one without a tenured (FTE) position — was promised a tenure line for over a decade while the university gave the openings to others, then had his

Reversing summary judgment in a FEHA failure-to-promote case, the Ninth Circuit reconciled its competing pretext lines — direct evidence of bias needs only "very little" weight to reach a jury, while circumstantial evidence must be "specific" and "substantial" — a formulation later questioned after Desert Palace but still central to MSJ briefing on both sides.

In Burlington Industries, Inc. v. Ellerth (1998) 524 U.S. 742, the U.S. Supreme Court held that an employer is vicariously liable under Title VII for a supervisor’s hostile-environment harassment of a subordinate, but where the harassment yields no tangible employment action the employer may raise the two-element Ellerth/Faragher affirmative defense. The Court demoted the “quid pro quo” and “hostile work environment” labels from liability tests to threshold proof categories and grounded employer liability in general agency principles.

An employer is vicariously liable for actionable hostile-environment harassment by a supervisor with authority over the employee. When no tangible employment action was taken, the employer may raise an affirmative defense (the Faragher/Ellerth defense): that it exercised reasonable care to prevent and promptly correct…

Title VII’s prohibition of discrimination “because of sex” protects against same-sex sexual harassment; nothing in the statute bars a claim merely because the plaintiff and the harassers are of the same sex, so long as the conduct constitutes discrimination because of sex and meets Title VII’s other requirements.

A unanimous Supreme Court held that Title VII hostile-environment harassment need not “seriously affect [an employee’s] psychological well-being” or cause tangible injury. Reaffirming Meritor, the Court adopted a “middle path” requiring conduct severe or pervasive enough to create an environment that both a reasonable person and the victim find abusive, judged on the totality of the circumstances.

St. Mary’s Honor Center v. Hicks Disproving the employer’s stated reason permits — but does not compel — a finding of intentional discrimination; the plaintiff must persuade the factfinder both that the reason was false and that discrimination was the real reason. St. Mary’s Honor Center v. Hicks (1993) 509 U.S. 502 Parallel citations: 113 […]

In UAW v. Johnson Controls, Inc. (1991) 499 U.S. 187, the Supreme Court held that an employer's fetal-protection policy excluding all fertile women from lead-exposed jobs is facial sex discrimination under Title VII as amended by the Pregnancy Discrimination Act — not a neutral practice to be tested for business necessity. The narrow bona fide occupational qualification defense reaches only qualifications affecting an employee's ability to do the job, and cannot be grounded in feared harm to a future fetus or in cost and tort-liability concerns.

To state a hostile-environment sexual harassment claim, a plaintiff must allege conduct that was unwelcome, based on sex, and sufficiently severe or pervasive to alter the conditions of employment and create an abusive working environment; an employee may be “subjected to” a hostile environment by harassment she…

In Wards Cove Packing Co. v. Atonio (1989) 490 U.S. 642, the Supreme Court held that a disparate-impact plaintiff must identify the specific employment practice causing a statistical disparity and bears the burden of persuasion on business justification, with the employer carrying only a burden of production and the challenged practice needing only to serve legitimate goals — not to be “essential.” The Civil Rights Act of 1991 later superseded the burden-of-persuasion holding, restoring Griggs v. Duke Power Co.

When Lillian Garland returned from pregnancy disability leave to find her receptionist job filled, California’s guarantee of leave and reinstatement collided with her employer’s theory that Title VII forbade treating pregnancy “better” than other disabilities. The Supreme Court sided with California: the Pregnancy Discrimination Act is a floor beneath which pregnancy benefits may not drop, not a ceiling above which states may not rise — and employers can always comply with both laws by leveling benefits up. Guerra remains the constitutional foundation of the PDLL and of every California pregnancy protection built since.

A claim of “hostile environment” sexual harassment is a form of sex discrimination actionable under Title VII; the harassment need not cause economic or tangible loss, but must be sufficiently severe or pervasive to alter the conditions of employment and create an abusive working environment, and must be unwelcome.

The Supreme Court held that an employer cannot use a racially balanced “bottom-line” workforce to defend a discriminatory pass/fail barrier that excludes individual employees. Title VII protects the person, not just the group.

Texas Department of Community Affairs v. Burdine At step two of the McDonnell Douglas framework, the employer bears only a burden of production — to articulate a legitimate, nondiscriminatory reason. The ultimate burden of persuasion remains at all times with the plaintiff. Texas Department of Community Affairs v. Burdine (1981) 450 U.S. 248 Parallel citations: […]

Larry Hardison was fired when his Saturday Sabbath collided with a low-seniority shift at TWA's around-the-clock maintenance base. Reversing the Eighth Circuit, the Supreme Court held that Title VII does not require an employer to override a bona fide seniority system to accommodate an employee's religion, and that requiring an employer to bear more than a de minimis cost is an undue hardship. Justices Marshall and Brennan dissented. The de minimis standard was later clarified and raised by Groff v. DeJoy (2023).

In Teamsters v. United States (1977) 431 U.S. 324, the Supreme Court drew the foundational line between disparate-treatment and disparate-impact discrimination, explained the Government's pattern-or-practice burden to prove that discrimination was a company's “standard operating procedure,” shielded bona fide seniority systems under section 703(h), and recognized the “futile gesture” doctrine excusing non-applicants deterred from applying by a known discriminatory policy.

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.

The Supreme Court held that back pay should normally be awarded to make Title VII victims whole — an employer’s good faith is no defense — and that job-validation studies must meet professional standards before discriminatory employment tests can stand.

Title VII disparate-treatment claims proceed under a three-step framework: (1) the plaintiff must establish a prima facie case of discrimination; (2) the burden of production then shifts to the employer to articulate a legitimate, nondiscriminatory reason for its action; and (3) the plaintiff must then have the…

Title VII prohibits employment practices that operate to exclude protected groups and are not demonstrably related to job performance, regardless of the employer’s intent (disparate-impact liability). If a neutral practice has a disparate impact on a protected class, the employer must show the practice is job-related…

In Weeks v. Southern Bell Tel. & Tel. Co. (5th Cir. 1969) 408 F.2d 228, the Fifth Circuit announced the foundational Title VII sex-BFOQ standard: an employer invoking sex as a bona fide occupational qualification must prove a factual basis for believing that all or substantially all women would be unable to perform safely and efficiently the duties of the job. The court rejected stereotype-based “romantic paternalism” and a state weight-lifting limit as justifications and placed the burden on the employer.