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
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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…
Employers Owe No Duty Of Care To Prevent The Spread Of COVID To Employees’ Household Members
Kuciemba v. Victory Woodworks, Inc., 14 Cal. 5th 993 (2023); 74 F.4th 1039 (9th Cir. 2023)
The California Supreme Court unanimously ruled that employers are not liable to nonemployees who contract COVID-19 from employee household members who bring the virus home from their workplace, because “[a]n employer does not owe a duty of care under California law to prevent the spread of COVID-19 to…
Principal Of Former Employer Liable Based On Alter Ego Theory
Hacker v. Fabe, 92 Cal. App. 5th 1267 (2023)
In 2005, attorney Jacqueline Fabe filed claim for unpaid wages against her employer with the Labor Commissioner. Her employer then filed a malpractice suit against Fabe, and Fabe in response filed a retaliation suit with the Labor Commissioner. Fabe and the Labor Commissioner later won on all claims. In March 2010, Fabe filed a motion…
Nurse May Proceed With Class Certification On Wage Statement Claim
Woodworth v. Loma Linda Univ. Med. Ctr., 93 Cal. App. 5th 1038 (2023)
Nicole Woodworth was a registered nurse at Loma Linda University Medical Center from December 2011 to June 2014. In June 2014, she filed a putative class action against Loma Linda, alleging various wage and hour claims on behalf of herself and other employees. She later amended her complaint to add a…
Fire Chief Was Terminated For Misconduct Not Because Of His Religion
Hittle v. City of Stockton, 76 F.4th 877 (9th Cir. 2023)
Ronald Hittle served as the City’s Fire Chief before he was fired (following an investigation by an outside investigator) because he lacked effectiveness and judgment in his ongoing leadership of the Fire Department; used City time and a City vehicle to attend a religious event and approved on-duty attendance of other Fire Department…
Court Affirms $7.1 Million Whistleblower Verdict
Zirpel v. Alki David Prods., Inc., 93 Cal. App. 5th 563 (2023)
Karl Zirpel worked as the vice president of operations for Alki David Productions (“ADP”) before the principal of ADP, Alki David, fired him for allegedly disclosing information that Zirpel reasonably believed evidenced a violation of safety standards and for disclosing information about ADP’s working conditions. The jury returned a special verdict…
Employer Must Prove “Substantial Increased Costs” Would Result From Religious Accommodation
Groff v. DeJoy, 600 U.S. ___, 143 S. Ct. 2279 (2023)
Gerald Groff, an Evangelical Christian, took a mail delivery job with the USPS at a time when postal service employees were was not required to work on Sundays. However, when the USPS began facilitating Sunday deliveries for Amazon, he was called upon to work Sundays, which ultimately resulted in his resignation from his…
Business Entity Agents Of Employer Share Potential FEHA Liability
Raines v. U.S. Healthworks Med. Group, 2023 WL 5341067 (Cal. S. Ct. 2023)
The Ninth Circuit certified to the California Supreme Court the question of whether FEHA’s definition of “employer” extends to corporate agents of the employer such as a company that conducts preemployment medical screenings. In this putative class action, plaintiffs allege that their employment offers were conditioned upon their completion of pre-employment…
Arbitrator Correctly Enforced Release Agreement Executed By Employee
Castelo v. Xceed Fin. Credit Union, 91 Cal. App. 5th 777 (2023)
Elizabeth Castelo sued her former employer Xceed Financial Credit Union for wrongful termination and age discrimination in violation of FEHA. After the parties stipulated to binding arbitration, the arbitrator granted summary judgment to Xceed based on a release that Castelo signed after she was notified of the termination decision but before her…