California employment case index

Luis Betanco delivered Living Spaces furniture from the retailer's California distribution centers to California customers and never crossed a state line. In a published decision filed June 25, 2026, the First District held he is still a 'transportation worker' exempt from the Federal Arbitration Act, because he was actively engaged in the interstate transportation of goods even though he made retail — not wholesale — deliveries. The furniture was inevitably destined from the outset of its interstate journey to his customers, so it never left the interstate stream even though it paused in a California warehouse. Because the FAA does not reach a section 1-exempt worker, Labor Code section 229 kept his statutory wage claims in court, and his representative PAGA claims survived under Adolph v. Uber Technologies. The order was affirmed.

A Tesla yard hostler who moved 53-foot trailers of out-of-state auto parts around the Fremont factory — never crossing a state line — sued for wage-and-hour violations, and Tesla moved to compel individual arbitration. In the published portion of its opinion, the First District holds yard hostlers are FAA section 1 transportation workers exempt from arbitration, and clarifies which wage claims Labor Code section 229 keeps in court.

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.

Stoneledge paid furniture sales associates on commission with a guaranteed $12.01 hourly draw that was deducted from later commissions. The Court of Appeal reversed summary judgment for the employer, holding that Wage Order No. 7 requires separate compensation for rest periods and applies equally to commissioned employees, piece-rate employees, or any other system that does not pay for rest breaks. The draws were not compensation at all – at best, interest-free loans.