California Employment Law Notes
Cambodian Villagers Could Proceed With Human Trafficking Lawsuit
Ratha v. Rubicon Resources, LLC, 168 F.4th 541 (9th Cir. 2026) (en banc)
Plaintiffs are villagers from rural Cambodia who allegedly were forced to work at seafood factories in Thailand and who alleged that Rubicon marketed in the United States seafood products from those factories, thus participating in a venture that benefited from human trafficking. The district court had previously…
Employer That Violates Consumer Reporting Act Is Liable For at Least $10,000 per Violation
Parsonage v. Wal-Mart Assocs., Inc., 118 Cal. App. 5th 399 (2026)
Before beginning employment with Wal-Mart, Tina Parsonage executed a “Background Report Disclosure” form that authorized Wal-Mart to conduct a background check on her. Three years later, Parsonage sued Wal-Mart for violating the California Investigative Consumer Reporting Agencies Act (ICRAA, Cal. Civ. Code § 1786, et seq.) by failing to identify the…
Resident Property Manager Was Properly Compelled to Vacate Premises Upon Termination of Employment
De Paolo v. Rosales, 118 Cal. App. 5th Supp. 1 (2026)
John R. De Paolo is the owner and trustee of the real property for which Jenny Rosales was the property manager/tenant. After De Paolo terminated Rosales’s employment, he served her with a 30-day notice to quit the premises. The trial court found that Rosales did not have an independent right of possession…
Unsuccessful PAGA Claimant Was Properly Denied Standing in Civil Action
Sorokunov v. NetApp, Inc., 2026 WL 590943 (Cal. Ct. App. 2026)
Alexander Sorokunov sued NetApp for various Labor Code violations, including PAGA. NetApp filed a petition to compel arbitration of Sorokunov’s individual claims, which the trial court granted. After the arbitrator entered an award in favor of NetApp, the trial court confirmed the award and granted NetApp’s motion for judgment on the pleadings on…
Employer’s Roll Out Of Arbitration Agreement During Class Action Litigation Was Ineffective
Avery v. TEKsystems, Inc., 165 F.4th 1219 (9th Cir. 2026)
More than 22 months after the commencement of a putative class action alleging various wage and hour law violations, TEK rolled out a new, mandatory arbitration agreement that automatically applied to putative class members unless they quit their jobs or affirmatively opted out of the Agreement. The district court declined to enforce…
“Nearly Unreadable” Arbitration Agreement May Be Unconscionable
Fuentes v. Empire Nissan, Inc., 19 Cal. 5th 93 (2026)
When applying to work at Empire Nissan, Evangelina Yanez Fuentes was given an employment application packet that included an arbitration agreement that was written in a very small font with text that was “so blurry and broken up that it is nearly unreadable.” When Fuentes went on medical leave for cancer treatment two…
If it’s Tuesday, There’s a New California Regulation for That – This Time Against Venture Capital Firms!
A new California law imposes significant new registration and reporting requirements on a broad range of asset management firms. Although the statute is styled as a “venture capital” law, its expansive definitions and California nexus provisions mean that many firms that do not traditionally view themselves as venture capital companies may nevertheless be subject to its requirements. Meet the new “Fair Investment Practices by Venture…
January California Employment Law Notes
Miscellaneous PAGA Developments
- LaCour v. Marshalls of CA, LLC, 2025 WL 3731034 (Cal. Ct. App. 2025) (Arbitration agreement that existed before Viking River Cruises, Inc. v. Moriana, 596 U.S. 639 (2022) could not result in compelled arbitration of employee’s “individual PAGA claim” because that concept did not exist prior to Viking River opinion).
- Brown v. Dave & Buster’s of Cal., Inc. 116 Cal. App. 5th