California employment case index

A former SpaceX employee who lived and worked in Redmond, Washington filed a FEHA complaint in California, and SpaceX refused to answer the Civil Rights Department's investigatory subpoena on the ground that FEHA stops at the state line. The Second District affirmed the order compelling compliance, and in the published portion of its opinion it did two things that matter to every multistate employer and every remote worker. It separated the question of what California connections trigger FEHA's investigatory provisions from the question of what connections trigger its substantive ones, observing that the potential for conflict with other sovereigns is far less when the Department investigates than when it enjoins, so that it is at least conceivable that fewer connections are required to open an investigation than to impose liability. And it refused to read Kearney, or the Tidewater-Sullivan-Ward-Oman wage-and-hour line, as laying down any categorical rule that California's employment laws never protect a worker outside the state, leaving Campbell v. Arco Marine intact but confined to a record in which the California connections were already settled. The court did not hold that FEHA reaches this employee; it held that SpaceX had not shown it cannot. Note that the opinion is published except as to part 2 of the Discussion, which may not be cited.

A sheriff’s deputy proved every element of his whistleblower retaliation claim — and still left the courthouse owing costs. The jury found his protected disclosures were a factor in the County’s actions against him, but also that the County would have made the same decisions anyway. Division Four held that a plaintiff defeated by the section 1102.6 same-decision defense who obtains no relief has not brought a “successful action” under section 1102.5(j): no attorney’s fees, and the employer is the prevailing party for costs. The panel declined to extend Harris v. City of Santa Monica’s FEHA rule, agreed the contrary result would be “a rational policy choice,” and pointedly left the fix to the Legislature.

The First District held that an employer's same-decision showing under Labor Code § 1102.6 is a complete defense to a § 1102.5 whistleblower claim — barring declaratory relief and attorney's fees along with damages — expressly declining to import Harris v. City of Santa Monica's FEHA partial-defense rule.

An environmental consultant told his supervisor that the client's instruction to omit a decade of prior helicopter operations from a NEPA assessment was illegal, and was fired days later. The district court held the disclosure unprotected because the supervisor had no power to correct the client's noncompliance. Applying California's last-antecedent rule, the Ninth Circuit held that the 'authority to investigate, discover, or correct' clause in Labor Code section 1102.5(b) modifies only 'another employee,' so a report to one's own supervisor is protected standing alone. The panel also treated a disclosure to the client agency's project leader as a disclosure to a government agency, rejected the job-duties and wrongdoer defenses, and held that section 1102.5(b) reaches anticipated whistleblowing – while affirming judgment on the refusal-to-participate claim.

Months after Lawson, the Third District affirmed summary judgment for the County of Sacramento under Labor Code § 1102.6 — undisputed evidence of insubordination, disrespect, and dishonesty proved clearly and convincingly that the county would have released the probationary employee anyway — while leaving open whether § 1102.5 requires an actual belief that the law was violated.

Reversing summary judgment for the UC Regents, the Second District mapped the post-Lawson landscape — Labor Code § 1102.6 governs § 1102.5 claims, Government Code § 8547.10(e) supplies the same framework for University of California whistleblowers, and McDonnell Douglas still governs Health and Safety Code § 1278.5 claims, under which Scheer's clause-by-clause dismantling of his termination letter raised a triable issue of pretext.

The California Supreme Court holds that Labor Code §1102.6 — not McDonnell Douglas — governs §1102.5 whistleblower-retaliation claims: the employee need only show protected activity was a contributing factor, shifting to the employer the clear-and-convincing burden of proving it would have acted the same anyway.

Piece-rate employees are entitled to separate hourly compensation for time spent waiting for repair work or performing other nonrepair tasks directed by the employer during their work shifts; piece-rate earnings cannot be averaged across that nonproductive time to satisfy the minimum-wage obligation (215 Cal.App.4th…

Section 203(b) contains a single, three-year limitations period governing all actions for section 203 penalties, regardless of whether the penalty claim is accompanied by a claim for unpaid final wages; and the penalties may be recovered even though the underlying wages were eventually paid.

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.

“Discharge” under sections 201 and 203 includes not only firing but also releasing an employee upon completion of the particular job assignment or time duration for which he or she was hired; final wages are then immediately due, and a willful failure to pay triggers waiting-time penalties.

California does not permit wage averaging: the minimum-wage standard applies to each hour worked, and an employer must pay at least the minimum wage for every compensable hour; it cannot use higher pay for some hours to offset unpaid or sub-minimum hours.