California employment case index

Tipped employees won preliminary certification of a nationwide FLSA collective in Arizona, and the district court authorised notice to out-of-state servers because one Arizona plaintiff had sued. The Ninth Circuit held that theory wrong, joining four circuits against the First to hold that Bristol-Myers Squibb applies in FLSA collective actions: where jurisdiction is specific, each opt-in plaintiff's claim must bear its own connection to the forum. The panel simultaneously preserved the Campbell two-step and refused to require pre-notice rulings on absent employees' arbitration agreements — a split decision whose wins and losses both reshape forum strategy in hybrid wage cases.

A district court remanded a California wage-and-hour class action on its own motion because the removing employer had not produced evidence justifying the violation rate behind its $15 million amount-in-controversy figure. The Ninth Circuit vacated: a CAFA defendant may rely on a chain of reasoning built from assumptions tethered to the complaint, and cannot fairly be asked to prove violations it denies ever occurred. Ibarra still bites where the defendant's reading of the pleading is unreasonable – but not merely because a lower rate was equally plausible. The uncomfortable corollary for plaintiffs is that vague frequency language such as at times is now a jurisdictional concession made at the drafting table.

The unpaid-wages component of section 558 is not a civil penalty recoverable through PAGA; only the fixed civil penalties ($50/$100 per employee per pay period) are PAGA penalties. Because the unpaid wages are not part of the PAGA claim, the trial court could not compel that portion to arbitration as if it were.