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.

Tipped employees won preliminary certification of a nationwide FLSA collective in Arizona, and the district court authorised notice to out-of-state servers because one Arizona plaintiff had sued. The Ninth Circuit held that theory wrong, joining four circuits against the First to hold that Bristol-Myers Squibb applies in FLSA collective actions: where jurisdiction is specific, each opt-in plaintiff's claim must bear its own connection to the forum. The panel simultaneously preserved the Campbell two-step and refused to require pre-notice rulings on absent employees' arbitration agreements — a split decision whose wins and losses both reshape forum strategy in hybrid wage cases.

Citigroup let employees take part of their annual compensation as discounted restricted stock vesting only after two years; an employee who resigned early forfeited both the shares and the pay used to buy them. The California Supreme Court affirmed summary judgment for the company, holding that no earned wages remained unpaid on resignation. The decision agrees that restricted stock is a wage – so it turns on when incentive compensation is earned, not on characterization – and expressly refuses to extend Suastez's pro rata vacation-vesting rule to voluntary incentive programs.