California employment case index

A former Work Practice Apprentice at the San Francisco Zen Center won a wage award, but the trial court held the First Amendment’s ministerial exception barred his claims. The First District reverses, adopting its companion case Lorenzo: the exception bars only claims that require resolving ecclesiastical questions, and the Center showed none. NOTE: the controlling ministerial-exception issue is now before the California Supreme Court in Lorenzo (S294565), so this opinion is citable for persuasive value only.

Cambodian villagers forced to work at Thai seafood factories sued a U.S. marketer under the trafficking civil-remedy statute; their case was dismissed because the statute then reached only those who succeeded in benefiting, not those who attempted to. After Congress amended the law, the en banc Ninth Circuit holds the clarifying amendment retroactive — and that Landgraf governs all such amendments, overruling the “clarifying amendment” exception — reviving the claims.

A work practice apprentice at one of North America’s largest Soto Zen Buddhist temples conceded she was a minister, sued only for the minimum and overtime wages she had already earned, and lost on summary judgment to the First Amendment ministerial exception. Division Five of the First District reversed on two independent grounds. The exception, it held, bars only those employment claims that necessarily require an inquiry into matters of a religious entity’s internal government closely linked to its faith and doctrine — and the Center never explained how a minimum-wage claim required one, conceding in its brief that adjudicating the case raised no ecclesiastical question. Separately, because the Labor Commissioner had found two individuals liable as the employer under Labor Code section 558.1, each of them had to post an undertaking under section 98.2 to perfect a de novo appeal; neither did, so the trial court had no jurisdiction over their appeals. The California Supreme Court granted review on February 11, 2026, limited to the ministerial-exception question, but denied depublication and directed that the opinion may still be cited both for its persuasive value and to establish a conflict in authority. This analysis sets out the Court’s own issue statement, what the Court of Appeal actually held and on what evidence, and exactly how much weight the opinion carries while review is pending.

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.

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) […]