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California employment case index

Search every indexed California wrongful-termination and employment decision, or browse by subject area, statute, and decade — each summary source-verified against the published reporter.

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4 cases

Cochran v. Schwan’s Home Service: Cell-Phone Reimbursement Under Labor Code 2802

August 12, 2014
A class of 1,500 customer service managers was denied certification because the trial court believed Labor Code section 2802 liability turned on each employee's own cell phone plan and on who actually paid the bill. Division Two reversed and stated the rule in its opening sentence: when employees must use personal cell phones for work-related calls, the employer must reimburse them a reasonable percentage of the bill, whether the plan is limited or unlimited. Whether a third party paid, and whether the employee changed plans, are irrelevant – plan details go to damages, not liability. The disposition is a reversal of a certification denial, not a merits judgment.

Staub v. Proctor Hospital: “Cat’s Paw” (Subordinate-Bias) Liability Under USERRA and Title VII

March 1, 2011
The Supreme Court’s foundational “cat’s paw” decision: an employer is liable when a biased supervisor performs an act intended to cause an adverse employment action that is a proximate cause of the ultimate decision — even if the formal decisionmaker had no discriminatory animus. A decisionmaker’s “independent investigation” does not automatically break the causal chain, especially when it credits the biased actor’s report without independently confirming the action was justified.

Gattuso v. Harte-Hanks Shoppers: § 2802 Expense-Reimbursement Methods

November 5, 2007
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.

Lakin v. Watkins Associated Industries: Section 3291 Prejudgment Interest, Fee-Order Appealability, and No Interest on Punitives

December 16, 1993
In Lakin v. Watkins Associated Industries (1993) 6 Cal.4th 644, a unanimous California Supreme Court resolved three recurring procedural and damages questions: a postjudgment order denying discovery-sanction (cost-of-proof) attorney fees is separately appealable; a personal-injury plaintiff bears the burden of proving which portion of a general award is “damages for personal injury” before claiming Civil Code section 3291 prejudgment interest; and that interest never accrues on punitive damages. The court reversed the Court of Appeal and remanded.