California employment case index

The California Supreme Court granted review on March 25, 2026 in Barbosa v. Sierra Pacific Orthopaedic Center Medical Group to decide whether an arbitration agreement that designates the Federal Arbitration Act thereby imports the FAA's substantive provisions and their preemptive force, even where no interstate commerce is shown. The underlying Court of Appeal opinion is nonpublished, and the Court denied the requests to publish it on granting review. The paired grant-and-hold, Tuufuli v. West Coast Dental Administrative Services, is published but itself under review, and answered the question yes. This pending-review analysis sets out the Court's own issue statement, the competing answers below with their correct citability under rule 8.1115(e)(1), and what the answer decides for Armendariz, Labor Code section 432.6, the arbitration-fee statutes and the EFAA.

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.

Almost every California wage case carries two penalty claims that do not depend on their own facts: waiting-time penalties under Labor Code section 203 for failing to pay a wage, and wage-statement penalties under section 226, subdivision (e)(1) for failing to report it. A good-faith dispute had long defeated the first. Whether it also defeated the second had split the Court of Appeal, with Kao, Furry and Gola holding that an employer aware of the underlying facts violated section 226 knowingly and intentionally whatever it believed about the law. In May 2024 the Supreme Court resolved the conflict in Naranjo v. Spectrum Security Services, Inc., holding that an objectively reasonable, good-faith belief in compliance precludes section 226 penalties. This article sets out the holding, explains why Naranjo did not create the section 203 rule it applied, identifies precisely what the decision disapproved in Gola and Furry and how much of both survives, and marks the remedy that a good-faith finding leaves untouched.

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.

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) […]

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.