As we previously reported, California recently enacted AB 1076, which reinforces the state’s broad statutory ban on noncompete agreements. The law took effect on January 1, 2024, and expressly codifies Edwards v. Arthur Andersen LLP, 44 Cal. 4th 937 (2008), a California Supreme Court opinion barring any noncompete, no matter how narrowly tailored it may be. The new law also affirms
Jonathan Slowik
Jonathan Slowik is a special counsel in the Labor Department and a member of the Employment Litigation & Counseling Group.
Trial Courts May Control, But They May Not Dismiss, PAGA Claims On “Manageability” Grounds
The California Supreme Court has issued its much-anticipated decision in Estrada v. Royalty Carpet Mills, Inc., determining whether Private Attorneys General Act (PAGA) claims can be dismissed as unmanageable. The Court affirmed a lower court’s decision, holding that “trial courts lack inherent authority to strike PAGA claims on manageability grounds”—that is, trial courts may not “dismiss [them] with prejudice.” Slip op. at 1-2. In…
Courts Are Overwhelmingly Staying Non-Individual Claims When Compelling Individual PAGA Claims to Arbitration
As we wrote previously, last summer’s blockbuster decision in Adolph v. Uber Technologies, Inc., 14 Cal. 5th 1104 (2023) contained a notable silver lining. In ruling that a Private Attorneys General Act (“PAGA”) plaintiff’s “non-individual” claims survive in court even after the “individual” claims are compelled to arbitration, the California Supreme Court strongly suggested that the non-individual claims should be stayed until the…
The Case for a PAGA Adequacy Requirement
In Arias v. Superior Court, 46 Cal. 4th 969 (2009), the California Supreme Court ruled that Private Attorneys General Act (PAGA) actions need not satisfy class action requirements, and in the fourteen years since, PAGA plaintiffs have routinely (and often successfully) resisted attempts to apply class action principles to PAGA actions. A recent unpublished California Court of Appeal decision bucks that trend by lending…
Is the California Supreme Court Going to Throw Employers a Bone on PAGA?
On November 8, 2023, the California Supreme Court heard oral argument in Estrada v. Royalty Carpet Mills, Inc., a case that could have profound implications for the future of Private Attorneys General Act (PAGA) litigation. The Court granted review in order to decide whether courts have the power to strike or limit PAGA claims that would prove to be unmanageable at trial.
A prior…
In a Surprise Move, California Enacts Boatload of New Pro-Employer Laws – Nah, Just Kidding, It’s Going to be More Burdensome than Ever!
In what has become an annual tradition, California – that fabled workers’ paradise on earth – has enacted a slew of new laws that, come January, may keep even the most hearty HR professionals up at night.
As we reported earlier this year (here), the California Chamber of Commerce initially identified 11 “Job Killer Bills” that were introduced early in the legislative session, but…
Industry and Labor Serve Up $20 Minimum Wage Deal For Fast Food Workers
A two-year standoff between the fast food industry and labor unions ended this week as stakeholders announced a deal that will increase the minimum wage to $20 for California workers at fast food chains with more than 60 locations nationwide.
As we previously reported, in September 2022, California passed A.B. 257, which created a 10-member fast-food council with authority to set wage, hour, and…
Put it in Writing: Los Angeles Imposes New Requirements on Employers of Independent Contractors
As readers may know, the Los Angeles Freelance Worker Protections Ordinance took effect on July 1, 2023. The new law imposes additional requirements on businesses in the City of Los Angeles who have contracts with freelance workers.
SCOTUS Provides Further Support For Staying PAGA Court Actions Pending Arbitration
With Adolph v. Uber Technologies, Inc. in the books, it is now clear that Private Attorneys General Act (PAGA) plaintiffs do not lose standing to pursue representative claims in court when their individual PAGA claims are sent to arbitration. In Adolph’s wake, disputes may arise regarding whether the representative court action should be stayed pending the individual arbitration. Adolph strongly suggested a stay is…
Adolph Parts With Viking River, Opening Path for Arbitration-Bound Plaintiffs to Pursue PAGA Claims in Court
On July 17, 2023, approximately one year after the U.S. Supreme Court’s landmark decision in Viking River Cruises, the California Supreme Court issued its highly-anticipated decision in Adolph v. Uber Technologies. The Court answered the critical question of whether a Private Attorneys General Act (PAGA) plaintiff retains their standing to pursue non-individual claims after their individual claims are compelled to arbitration. As many…