California Employment Law Update

Category Archives: PAGA

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The Monetary Value Of Vacation Accrual Need Not Be Included In Wage Statement

Soto v. Motel 6 Operating, L.P., 4 Cal. App. 5th 385 (2016) Lidia Soto sued her former employer, Motel 6 Operating, L.P., for violation of Labor Code § 226(a) for failing to include the monetary value of accrued vacation pay in its employees’ wage statements. Soto sued in her individual capacity and also on behalf … Continue Reading

California Broadens Its “Fair Pay Act” to Prohibit Race And Ethnicity Discrimination

Around this time last year, Section 1197.5 of the California Labor Code was amended by S.B. 358 in order to “eliminate the gender wage gap in California.” Among other things, the amendment sought to increase wage transparency and made it more difficult for employers to defend against gender-based equal pay claims. On September 30, 2016, … Continue Reading

Court Affirms Dismissal Of PAGA Claims For Inadequate Notice But Orders Certification Of Class Action

Alcantar v. Hobart Serv., 800 F.3d 1047 (9th Cir. 2015) Joséluis Alcantar filed this action against his employer to represent a putative class of service technicians for the time spent commuting in the employer’s service vehicles from their homes to their jobsites and then back again. Alcantar also alleged failure to provide the technicians with … Continue Reading

Gender-Based “Fair Pay Act” Enacted

This law amends Labor Code § 1197.5 (SB 358): Broader Prohibition of Gender Wage Differentials Enacted Currently, Section 1197.5 prohibits an employer from paying an employee at wage rates less than the rates paid to employees of the opposite sex in the same establishment for equal work. The amendment revises this prohibition, instead prohibiting an … Continue Reading

PAGA Cure Period Provided

This law, which became effective immediately, amends the Private Attorneys General Act (“PAGA”) to provide an employer with the right to cure a violation of the requirement that an employer provides its employees with the inclusive dates of the pay period and the name and address of the employer before an employee may bring a … Continue Reading

California Enacts a Raft of New Employment Legislation

The latest legislative session has just ended, and, true to form, the California Legislature has added more than a dozen new laws affecting employers doing business in the nation’s largest state.  These statutes are in addition to the other six new laws that we reported on in September: Signed legislation: Sick Leave: Accrual And Limitations Language … Continue Reading

U.S. Supreme Court Tires (For Now) of Playing “Whack-a-Mole” With California Over Arbitration

On January 20, 2015, the U.S. Supreme Court denied the petition for certiorari filed in CLS Transp. Los Angeles, LLC v. Iskanian, a case in which the California Supreme Court held that waivers of employees’ right to bring representative actions under California’s Private Attorneys General Act of 2004 (“PAGA”) are unenforceable under state law. You … Continue Reading

Multiple PAGA Representative Claims Crumble As Federal Courts Continue To Reject Iskanian and Enforce Arbitration Agreements Containing PAGA Waivers

When the California Supreme Court decided Iskanian v. CLS Transp. Los Angeles, LLC, 59 Cal. 4th 348 (2014), this June, some legal commentators assumed that employees could not waive pre-litigation claims under the Private Attorneys General Act (PAGA). Those assumptions may have been premature. As we noted here, at least one federal court refused to … Continue Reading

PAGA Claims and Arbitration – A Federal Court Parts Ways With Iskanian

The California Supreme Court’s decision in Iskanian v. CLS Transp. Los Angeles, LLC, (discussed here), held that class action waivers in arbitration agreements are enforceable under the Federal Arbitration Act (FAA) except as to claims that were made pursuant to the Private Attorneys General Act (PAGA). PAGA allows aggrieved employees to represent other current and … Continue Reading

Class Action Plaintiffs Must Develop A Trial Plan That May Include Statistical Sampling

Duran v. U.S. Bank Nat’l Ass’n, 59 Cal. 4th 1 (2014) Plaintiffs in this case are loan officers for U.S. Bank (“USB”) who claim they were misclassified as exempt employees under the outside salesperson exemption. After certifying a class of 260 plaintiffs, the trial court devised a plan to determine the extent of USB’s liability … Continue Reading

Employers Should Now Run—Not Walk—Toward Adopting Arbitration Agreements in California

Yesterday, the California Supreme Court issued its long-awaited decision in Iskanian v. CLS Transp. Los Angeles, LLC, upholding class action waivers in employment arbitration agreements. This means that the U.S. Supreme Court’s 2011 opinion in AT&T Mobility LLC v. Concepcion is to be given full force and effect in the employment setting in California. That … Continue Reading

California Courts May No Longer Be Able to Certify a Ham Sandwich

Commentators have quipped that class certification is so easy in California that with little effort a group of plaintiffs could certify even a ham sandwich.  In fact, as we have discussed here, we have seen a proliferation of recent appellate decisions hinging class certification on the mere existence of an employer’s uniform policy – no … Continue Reading

PAGA Action Should Have Been Remanded To State Court

Baumann v. Chase Inv. Servs., 2014 WL 983587 (9th Cir. 2014) Joseph Baumann sued his employer, Chase Investment Services Corporation, under the Private Attorneys General Act (“PAGA”), alleging claims for unpaid overtime, meal breaks and rest periods and timely expense reimbursements. Baumann further alleged his potential share of any recovery and attorney’s fees would be … Continue Reading

California Labor Commissioner Introduces new “Wage Theft” Website, paid for by PAGA

On April 30, 2014, the California Labor Commissioner introduced a new website, WageTheftIsACrime.com in an outreach attempt aimed at what the Commissioner calls the “underserved population of low-wage workers.” Although the Labor Commissioner already operates a thorough and comprehensive website, https://www.dir.ca.gov/dlse/dlse.html, the new site is purposefully written in plain English in an attempt to reach … Continue Reading

Deleon v. Verizon Wireless: Court of Appeal Permits “Charge Back” of Commission Advances

Deleon, a former retail sales representative for Verizon Wireless, filed suit on behalf of himself and other aggrieved employees seeking civil penalties under the Labor Code Private Attorneys General Act of 2004 (Lab. Code, § 2698 et seq.) for violation of Labor Code section 223, which prohibits the secret underpayment of wages. Deleon’s compensation plan included … Continue Reading

Employer Need Only Provide And Not Ensure Meal And Rest Breaks

Hernandez v. Chipotle Mexican Grill, Inc., 189 Cal.App.4th 751 (2010) Rogelio Hernandez worked as a non-exempt employee at Chipotle Mexican Grill. In this putative class action, Hernandez alleged that Chipotle violated California wage and hour law by failing to ensure that its employees took their meal breaks. The trial court granted Chipotle’s motion to deny … Continue Reading
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