California employment case index

The California Supreme Court holds that CCP §1281.98's arbitration-fee-payment forfeiture rule is not preempted by the FAA — but, rejecting the rigid automatic-forfeiture reading, only where a late payment is willful, grossly negligent, or fraudulent rather than a good-faith mistake or excusable neglect.

Analysis · Key Case Cvejic v. Skyview Capital, LLC (2023) 92 Cal.App.5th 1073 Court of Appeal, Second Appellate District, Division Eight · Docket No. B318880 · Decided June 28, 2023 Verify before relying. A summary and analysis as of its publication date — not legal advice, and not a representation that the decision remains good […]

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.

Tilly’s required retail workers to phone the store exactly two hours before every on-call shift — under threat of written discipline — and paid nothing if the answer was ‘don’t come in.’ Division Three held, 2–1, that this triggers Wage Order 7 reporting-time pay: ‘reporting for work’ means presenting oneself as ordered, and the employer’s own directions define the manner, whether that is walking through the door, logging on remotely, or making a mandatory call. The holding is deliberately tied to the two-hour call-in regime, the retroactivity question was expressly left open, and Justice Egerton’s partial dissent — built on 18,000 pages of IWC history — supplies the employer playbook. Review was denied; Ward remains the leading California authority on call-in scheduling.

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.

Answering three questions certified by the Ninth Circuit, the California Supreme Court held that the “nature of the work” under the wage orders' seating provision refers to the tasks an employee performs at a given location – not to the whole job – and that whether the work reasonably permits sitting is an objective, totality-of-the-circumstances question in which employer business judgment and workplace layout are relevant but not dispositive. If the employer contends no suitable seat exists, it bears the burden of proving unavailability.