Goonewardene v. ADP, LLC, 5 Cal. App. 5th 154 (2016)
In her fifth amended complaint, Sharmalene Goonewardene alleged claims against her former employer (ADP) for wrongful termination, violation of the Labor Code, breach of contract, negligent misrepresentation and negligence. The trial court sustained ADP’s demurrer to the complaint without further leave to amend, and the Court of Appeal affirmed in part and reversed in part, holding that only the wrongful termination and Labor Code claims were properly dismissed. The Court held that there were not sufficient facts alleged establishing an employment relationship between Goonewardene and ADP (the payroll company used by her employer, Altour International Inc.) and on that basis affirmed dismissal of the Labor Code and FLSA violation claims. Similarly, ADP was not liable as a matter of law for either discrimination or wrongful termination in violation of public policy because of the absence of an employment relationship. As for the breach of contract claim, the Court of Appeal held that Goonewardene and other Altour employees were third-party beneficiaries of an agreement between Altour and ADP. The Court also held that the negligent misrepresentation and professional negligence claims survived demurrer based on ADP’s alleged failure to properly calculate wages owed to Goonewardene.
