California employment case index

A firm filed a wage-and-hour class action duplicating one it had already filed elsewhere, then opposed a stay with a brief — drafted by a contract attorney using generative AI — full of nonexistent citations and at least eight fabricated quotations. The First District affirms $6,000 in section 128.7 sanctions: counsel of record bear ultimate responsibility for what they sign, and the duty to verify authority cannot be delegated to any form of technology.

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.

In McDonald v. Santa Fe Trail Transportation Co. (1976) 427 U.S. 273, two white employees were discharged for participating in the theft of antifreeze from a shipment in their employer's care, while a Black employee charged with the same misconduct was retained. The Supreme Court held — unanimously as to Title VII, and seven-to-two as to 42 U.S.C. § 1981 — that both statutes protect against racial discrimination directed at any race, including white persons. An employer “may justifiably refuse to rehire one who was engaged in unlawful, disruptive acts against it, but only if this criterion is applied alike to members of all races.” The judgment dismissing the complaint was reversed and the case remanded.