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 school district analyst who wanted to work entirely from home during and after the pandemic sued under FEHA and the Labor Code when her employer insisted on a phased return to the office. Division One affirmed summary judgment, holding that Government Code section 855.4 immunizes a public entity's discretionary decisions about controlling the spread of disease – including whether to permit remote work, when to require a return, and whether to mandate vaccination. But the court was explicit that it affirmed on immunity because the plaintiff's briefing 'contains no reasoned argument' explaining why her claims fell outside it, and it went on to affirm on three independent grounds: no qualifying disability, no admission of disability from holding interactive meetings, and no adverse employment action where a threatened leave was never imposed and the retirement was voluntary.

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.