California employment case index

A trucking-job applicant brought an FCRA class action over confusing, noncompliant background-check disclosure forms; after Limon v. Circle K required concrete injury, the trial court decertified the class. The First District reverses and declines to follow Limon: California courts are not bound by Article III, and a willful FCRA violation supports statutory damages of $100–$1,000 and standing without proof of harm.

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, Inc. (2022) […]

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.

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.