Very few companies doing business in California missed the news recently that a San Francisco jury ordered Tesla, the electric car manufacturer, to pay $137 million to a Black former elevator operator who had worked at the company for less than a year before he quit his job due to alleged racial harassment in the workplace.

Sizeable verdicts like this from California juries are not that unusual these days – and, in fact, they’re becoming even more commonplace. In the past nine years, California juries have ordered employers to pay scores of multi-million dollar verdicts. One prominent employee-side lawyer boasts “half a billion in verdicts & settlements” and lists multiple favorable verdicts on behalf of employees in the tens of millions of dollars.

We have summarized here more than two dozen VERY LARGE California jury verdicts in employment cases from the past 9 years. They range between $2.2 million to more than $186 million (in San Diego against AutoZone) – without a doubt the highest single-plaintiff employee verdict in recorded history.  Not all of these verdicts survived appeal or post-trial motions, but they do suggest a disturbing pattern that should concern any California employer.

Because of the inherent risks of litigating employment cases before California juries, many employers have tried to insulate themselves against catastrophe by requesting that employees and applicants sign arbitration agreements. The benefits of arbitration agreements are well known, but in the wake of a recent opinion from the Ninth Circuit Court of Appeals, that option, too, is imperiled in California.

It’s no surprise that many employers are fleeing California altogether, finding the costs of living and doing business here outweigh the benefits.  Just days after the $137 million verdict against his company, Elon Musk announced that Tesla will be relocating its headquarters from California to Austin, Texas. And, according to a study by the Hoover Institution, 272 companies moved their headquarters to other states during the period from January 1, 2018 through June 30, 2021.

Like Tesla, these companies (some of which have been in the Golden State for decades) are relocating to the more business-friendly states of Texas, Arizona, and Nevada where the cost of living for employees is significantly lower.

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Photo of Tony Oncidi Tony Oncidi

Anthony J. Oncidi is the co-chair of the Labor & Employment Law Department and heads the West Coast Labor & Employment group in the firm’s Los Angeles office.

Tony represents employers and management in all aspects of labor relations and employment law, including…

Anthony J. Oncidi is the co-chair of the Labor & Employment Law Department and heads the West Coast Labor & Employment group in the firm’s Los Angeles office.

Tony represents employers and management in all aspects of labor relations and employment law, including litigation and preventive counseling, wage and hour matters, including class actions, wrongful termination, employee discipline, Title VII and the California Fair Employment and Housing Act, executive employment contract disputes, sexual harassment training and investigations, workplace violence, drug testing and privacy issues, Sarbanes-Oxley claims and employee raiding and trade secret protection. A substantial portion of Tony’s practice involves the defense of employers in large class actions, employment discrimination, harassment and wrongful termination litigation in state and federal court as well as arbitration proceedings, including FINRA matters.

Tony is recognized as a leading lawyer by such highly respected publications and organizations as the Los Angeles Daily JournalThe Hollywood Reporter, and Chambers USA, which gives him the highest possible rating (“Band 1”) for Labor & Employment.  According to Chambers USA, clients say Tony is “brilliant at what he does… He is even keeled, has a high emotional IQ, is a great legal writer and orator, and never gives up.” Other clients report:  “Tony has an outstanding reputation” and he is “smart, cost effective and appropriately aggressive.” Tony is hailed as “outstanding,” particularly for his “ability to merge top-shelf lawyerly advice with pragmatic business acumen.” He is highly respected in the industry, with other commentators lauding him as a “phenomenal strategist” and “one of the top employment litigators in the country.”

“Tony is the author of the treatise titled Employment Discrimination Depositions (Juris Pub’g 2020; www.jurispub.com), co-author of Proskauer on Privacy (PLI 2020), and, since 1990, has been a regular columnist for the official publication of the Labor and Employment Law Section of the State Bar of California and the Los Angeles Daily Journal.

Tony has been a featured guest on Fox 11 News and CBS News in Los Angeles. He has been interviewed and quoted by leading national media outlets such as The National Law JournalBloomberg News, The New York Times, and Newsweek and Time magazines. Tony is a frequent speaker on employment law topics for large and small groups of employers and their counsel, including the Society for Human Resource Management (“SHRM”), PIHRA, the National CLE Conference, National Business Institute, the Employment Round Table of Southern California (Board Member), the Council on Education in Management, the Institute for Corporate Counsel, the State Bar of California, the California Continuing Education of the Bar Program and the Los Angeles and Beverly Hills Bar Associations. He has testified as an expert witness regarding wage and hour issues as well as the California Fair Employment and Housing Act and has served as a faculty member of the National Employment Law Institute. He has served as an arbitrator in an employment discrimination matter.

Tony is an appointed Hearing Examiner for the Los Angeles Police Commission Board of Rights and has served as an Adjunct Professor of Law and a guest lecturer at USC Law School and a guest lecturer at UCLA Law School.

Photo of Ariel Brotman Ariel Brotman

Ariel Brotman is an associate in the Labor & Employment Department and a member of the Employment Litigation & Arbitration Group. She represents employers in all aspects of employment litigation, including wage and hour, wrongful termination, discrimination, harassment, retaliation, whistleblower, trade secrets, and…

Ariel Brotman is an associate in the Labor & Employment Department and a member of the Employment Litigation & Arbitration Group. She represents employers in all aspects of employment litigation, including wage and hour, wrongful termination, discrimination, harassment, retaliation, whistleblower, trade secrets, and breach of contract litigation, in both the single-plaintiff and class-action context. She also counsels employers on a diverse range of workplace issues.

Ariel earned her J.D. from USC Gould School of Law, where she was a member of the Southern California Interdisciplinary Law Journal. During law school, she was also a clinical student in the University of Southern California Immigration Clinic. In addition, she served as a judicial extern to the Honorable Robert N. Kwan in the United States Bankruptcy Court, Central District of California.