California Employment Law Update

Category Archives: Employment Contracts

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May 2023 California Employment Law Notes

By Tony Oncidi on Posted in Age discrimination, California Labor & Employment Law, Computer and Internet Use, Day Laborers, Discrimination, Employee Benefits, Employment Contracts, Employment Law Notes, Employment Policies, Independent Contractors, Privacy, Religion
We invite you to review our newly-posted May 2023 California Employment Law Notes, a comprehensive review of the latest and most significant developments in California employment law. The highlights include: Art Teacher’s Age Discrimination Case May Not Be Barred By “Ministerial Exception” Users May Have Privacy Interest In Emails Sent Over Company Network Absent Express … Continue Reading

Unions, Legislature Dealt Yet Another Blow in AB 5 Appeal

By Tony Oncidi on Posted in California Labor & Employment Law, Day Laborers, Employee Benefits, Employment Contracts, Employment Policies, Independent Contractors
Olson v. State of Cal., 62 F.4th 1206 (9th Cir. 2023) In the latest in a string of defeats for the State of California, a Ninth Circuit panel unanimously held that AB 5 (the anti-independent contractor law) may violate the equal protection rights of independent contractor drivers and the gig companies that retain them.  The … Continue Reading

Employer Need Not Reimburse Travel Expenses for Drug Test

By Tony Oncidi and Dixie Morrison on Posted in Class Actions, Drug Testing, Employment Applications, Employment Contracts, Expense Reimbursement, Hiring
A federal appeals court recently affirmed a summary judgment entered in favor of WinCo Foods in a class action alleging that WinCo should have reimbursed successful job applicants for the time and travel expenses they incurred in obtaining a drug test as a pre-condition of employment.  In Johnson v. WinCo Foods, LLC, the court agreed … Continue Reading

California Court of Appeal Publishes Opinion Upholding Customer Non-Solicitation Covenant

By Kate Gold and Sehreen Ladak on Posted in Breach of Contract, California Labor & Employment Law, Employment Contracts, Non-Competition Covenants
Despite California’s general hostility towards post-termination restrictive covenants, the California Court of Appeal, in a recently published opinion, Blue Mountain Enters., LLC v. Owen, 74 Cal.App.5th 537 (1st Dist. Jan. 10, 2022), affirmed that a post-termination customer non-solicitation agreement was enforceable under California Business & Professions Code § 16601. Under most circumstances, contractual provisions that … Continue Reading

Court Rejects Netflix’s Challenge to Poaching Injunction

By Tony Oncidi, Philippe A. Lebel and Dixie Morrison on Posted in Breach of Contract, Employment Contracts, Entertainment Industry, Unfair Competition
In the latest blow against Netflix’s aggressive recruiting practices, a California appellate court has affirmed a trial court’s injunction against Netflix and in favor of Twentieth Century Fox Film Corporation (“Fox”), thus permanently barring the streaming giant from poaching Fox executives by inducing them to breach their fixed-term employment contracts. Netflix challenged the injunction, which … Continue Reading

California Enacts a Raft of New Employment Laws

By Tony Oncidi on Posted in #MeToo, Arbitration Agreements, California Labor & Employment Law, Employment Contracts, FEHA, Harassment, New and Proposed Laws and Legislation, Sexual Harassment
On Thursday, October 10, 2019, California Gov. Gavin Newsom signed into law several new measures that employers will need to comply with by January 1, 2020 and that will generally make it easier for employees to sue their employers.  Specifically: AB 9 extends the statute of limitations period for employees to file claims of discrimination, harassment and/or retaliation … Continue Reading

California Employee Required to Challenge Non-Compete Clause in Indiana

By Tony Oncidi and Pietro Deserio on Posted in California Labor & Employment Law, Employment Contracts, Non-Competition Covenants
Despite California’s prohibition against non-compete agreements, a federal court in the Eastern District of California recently ruled that a California resident may be subject to the non-compete covenant in his employment agreement due to a provision in the agreement identifying Indiana as the parties’ choice of forum and that state’s law as the parties’ choice … Continue Reading

FAQ About California’s New Law on Venue and Choice of Law in Employment Agreements

By Tony Oncidi, Elaine H. Simson, Hal Brody and Pietro Deserio on Posted in Arbitration Agreements, Attorney's Fees, Employee Handbooks, Employment Contracts, New and Proposed Laws and Legislation
We recently blogged about Governor Brown signing S.B. 1241, which is now codified as Section 925 of the California Labor Code. The law, which affects venue and choice of law provisions in agreements entered into as a condition of employment, will begin applying to agreements entered into, modified, or extended beginning on January 1, 2017. … Continue Reading

California Protects Employees’ Rights to Have Their Claims Heard in the State, Under California Law

By Tony Oncidi and Elaine H. Simson on Posted in Arbitration Agreements, Attorney's Fees, Employee Handbooks, Employment Contracts, Employment Policies
In recent years, some employers doing business in the Golden State have required their employees to sign arbitration and employment agreements that require the employee to sue or arbitrate in – or under the law of – another state.  After January 1, 2017, this practice will be illegal unless the employee was represented by legal … Continue Reading

Ninth Circuit Strikes Down Employer’s Class Action Waiver

By Tony Oncidi on Posted in Arbitration Agreements, California Labor & Employment Law, Class Actions, Employment Contracts, Exempt Employees, FLSA, NLRA
Morris v. Ernst & Young, LLP, 2016 WL 4433080 (9th Cir. 2016) As a condition of employment, Stephen Morris and Kelly McDaniel were required to sign agreements not to join with other employees in bringing legal claims via arbitration against their employer. Morris and McDaniel filed a class and collective action against the company, alleging … Continue Reading

Employee Could Proceed With Misclassification Claim, Though Wrongful Termination Claim Was Properly Rejected

By Tony Oncidi on Posted in Attorney's Fees, Discrimination, Employment Contracts, Independent Contractors, Wrongful Termination
Davis v. Farmers Ins. Exch., 245 Cal. App. 4th 1302 (2016) William A. Davis brought suit against Farmers, claiming he had been wrongfully classified as an independent contractor rather than an employee and asserting that he had been wrongfully terminated on the basis of his age. The trial court directed a verdict in Farmers’s favor … Continue Reading

Employee Who Dismissed Claims Upon Receipt Of Settlement Can Recover Costs As Prevailing Party

By Tony Oncidi on Posted in Attorney's Fees, Employment Contracts, Settlement
DeSaulles v. Community Hosp. of the Monterey Peninsula, 62 Cal. 4th 1140 (2016) Maureen deSaulles agreed to dismiss her causes of action for breach of contract and breach of the implied covenant of good faith and fair dealing in exchange for a settlement payment from her former employer in the amount of $23,000. The trial … Continue Reading

Employee’s Qui Tam Fraud Claims Should Not Have Been Dismissed

By Tony Oncidi on Posted in Employment Contracts, FCA, Whistleblowers
United States ex rel. Mateski v. Raytheon, 816 F.3d 565 (9th Cir. 2016) Steven Mateski worked as an engineer at Raytheon. Mateski filed a complaint in federal court alleging that Raytheon had violated the False Claims Act (“FCA”) by failing to comply with numerous contractual requirements in developing a project for the government, fraudulently covering … Continue Reading

Second Circuit Reaffirms Enforceability of Arbitration Agreements Containing Collective Action Waivers In Two FLSA Cases

By Charles J. Stiegler and Laura Reathaford on Posted in Arbitration Agreements, Class Actions, Employment Contracts, FAA, FLSA, Wage and Hour
Two recent decisions from the U.S. Court of Appeals for the Second Circuit have reaffirmed the enforceability of employment-related arbitration agreements containing class action waivers. In Sutherland v. Ernst & Young and Raniere v. Citigroup, Inc. the Second Circuit held that the Federal Arbitration Act (FAA) requires courts to enforce a valid agreement to arbitrate … Continue Reading

California Court Upholds Arbitration Agreement

By Tracey Silver on Posted in Arbitration Agreements, Employment Contracts
Baltazar v. Forever 21, Inc., 2012 Cal. App. LEXIS 1292 (Dec. 20, 2012) Maribel Baltazar sued her former employer, Forever 21, Inc., alleging she was constructively discharged and subjected to discrimination and harassment based on her race and sex.  In response, Forever 21 filed a motion to compel arbitration pursuant to an arbitration agreement between … Continue Reading

Trial Court Erred In Failing To Certify Class Action For Unpaid Overtime And Meal-And-Rest Breaks

By Proskauer Rose on Posted in Class Actions, Employment Contracts, Employment Law Notes, Independent Contractors, Meal Periods and Rest Breaks, Off-the-clock Issues
Bradley v. Networkers Int’l, LLC, 2012 WL 6182473 (Cal. Ct. App. 2012) The three named plaintiffs in this case were among approximately 140 skilled workers retained by Networkers to provide repair and installation services at cell sites. Each worker was required to sign a standard contract, which stated that he or she was an independent … Continue Reading

$1.347 Million Award To Former General Counsel For Breach Of Implied Contract Is Upheld

By Proskauer Rose on Posted in Employment Contracts, Employment Law Notes
Faigin v. Signature Group Holdings, Inc., 211 Cal. App. 4th 726 (2012) Alan W. Faigin worked as an in-house attorney for Fremont General Corporation (which later became Signature Group Holdings) for 17 years before his employment was terminated for cause in March 2008. Faigin sued Fremont based on a number of theories, including breach of … Continue Reading

Touchstone Television Productions v. Superior Court (Sheridan): Refusal To Renew An Employment Contract Is Not A Termination

By Proskauer Rose on Posted in Employment Contracts, Wrongful Termination
Touchstone Television Productions v. Superior Court, No. BC435248, 2012 WL 3525609 (Aug. 16, 2012) If you are among the throngs of Desperate Housewives fans, you may recall when Wisteria Lane’s Edie Williams, played by actress Nicollette Sheridan, tragically died of electrocution following a car accident during the show’s fifth season. Sheridan later filed a lawsuit … Continue Reading

Proskauer Wins Summary Judgment on Behalf of Paramount in Breach of Contract, Discrimination Case

By Proskauer Rose on Posted in Background Investigations, Discrimination, Employment Contracts, News
The plaintiff was an Australian citizen working as an associate attorney for the law firm of O’Melveny & Myers LLP on a work visa. In October 2009, Paramount extended to her a conditional offer of employment to serve as its Vice President, IT Legal, the offer being contingent upon the completion of a background investigation … Continue Reading

Talent Agencies Act Applies To Personal Managers As Well As Agents

By Tony Oncidi on Posted in Employment Contracts, Employment Law Notes
Marathon Entm’t, Inc. v. Blasi, 42 Cal. 4th 974 (2008) Marathon Entertainment and Rosa Blasi entered into an oral contract by which Marathon would serve as Blasi’s personal manager in exchange for 15% of Blasi’s earnings from entertainment employment obtained during the course of the contract. Marathon sued Blasi after she reneged on her agreement … Continue Reading

Predispute Waiver Of Right To Jury Trial Is Unenforceable

By Tony Oncidi on Posted in Employment Contracts, Employment Law Notes
Grafton Partners LP v. Superior Court, 115 Cal. App. 4th 700, 9 Cal. Rptr. 3d 511 (2004) Grafton Partners and related parties (Grafton) retained PricewaterhouseCoopers (PwC) to perform an independent audit on their accounting records. The parties’ engagement letter contained a predispute jury waiver whereby both parties agreed not to demand a trial by jury “in the … Continue Reading

Employee Who Was Induced To Resign Previous Job Was Entitled To Proceed With Fraud Claim

By Tony Oncidi on Posted in Employment Contracts, Employment Law Notes, Wrongful Termination
Blitz v. Fluor Enterprises, Inc., 115 Cal. App. 4th 185, 8 Cal. Rptr. 3d 833 (2004) Mr. Blitz had been employed in a financial position at Raytheon in New Jersey for 12 years before he was contacted by a member of Fluor’s management team and offered a job in California. Before resigning his position with Raytheon and … Continue Reading

Airline Was Not The Joint Employer Of Service Workers For Purposes Of FMLA/CFRA

By Tony Oncidi on Posted in Employment Contracts, Employment Law Notes, FMLA, Leaves of Absence, Wrongful Termination
Moreau v. Air France, 356 F.3d 942 (9th Cir. 2003) Stephane Moreau worked as the Assistant Station Manager for Air France at San Francisco International Airport (SFO). Moreau requested a 12-week leave of absence under the Family Medical Leave Act and the California Family Rights Act to assist his ill father in France. Air France … Continue Reading
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