An astronomical $137 million jury verdict against Tesla has again been reduced, for a second (and potentially final) time. Last Monday, following a five-day trial on damages, a federal court jury awarded Owen Diaz, a former Tesla elevator operator, $175,000 in emotional distress damages and $3 million in punitive damages, totaling nearly $3.2 million—almost $134 million shy of the award he originally obtained in 2021.

We invite you to review our newly-posted March 2023 California Employment Law Notes, a comprehensive review of the latest and most significant developments in California employment law. The highlights include:

Armstrong v. Michaels Stores, Inc., 59 F.4th 1011 (9th Cir. 2023)

Teresa Armstrong executed an arbitration agreement with her employer Michaels Stores. After filing her claims in state court, Michaels answered, asserting its right to arbitration as an affirmative defense and removing the action to federal district court. The parties then submitted a joint case management statement that referenced as an issue in dispute

Rocha v. U-Haul Co. of Cal., 88 Cal. App. 5th 65 (2023)

Thomas and Jimmy Rocha alleged FEHA and Labor Code violations against their employer U-Haul. The brothers’ individual PAGA claims were compelled to arbitration where they subsequently lost on all causes of action. The Rochas then moved to vacate the arbitrator’s award, but the trial court confirmed the award and imposed sanctions. The

Earlier this month, the California Court of Appeal (2d Dist.) ruled that issue preclusion bars a derivative Private Attorneys General Act (PAGA) claim where the plaintiff litigates individual Labor Code claims in arbitration and loses.  Rocha v. U-Haul Co. of Cal., 2023 WL 1462594 (Cal. Ct. App. Feb. 2, 2023) (certified for publication).  Rocha, while at odds with a prior decision from the

Yesterday, a three-judge Ninth Circuit panel revisited its own 2021 order and finally struck down California’s anti-mandatory employment arbitration law, Assembly Bill 51 (“AB 51”).  In an opinion drafted by the former dissenting judge, Judge Sandra Ikuta, the new majority declared AB 51 was preempted by the Federal Arbitration Act (“FAA”).

The statute in question, signed into law by Governor Newsom in 2019, was California

We invite you to review our newly-posted November 2022 California Employment Law Notes, a comprehensive review of the latest and most significant developments in California employment law. The highlights include:

Espinoza v. Superior Court, 83 Cal. App. 5th 761 (2022)

Rosa M. Quincoza Espinoza sued her former employer, Centinela Skilled Nursing & Wellness Centre West, LLC, for discrimination and retaliation.  The employer filed a motion to stay the litigation and compel arbitration, invoking the terms of an arbitration agreement that Espinoza had signed.  After the employer’s motion to compel arbitration was granted, Espinoza’s counsel

On February 10, 2022, the Senate passed H. 4445, the Ending Forced Arbitration of Sexual Assault and Sexual Harassment Act (the “Act”), by a voice vote.  The bill had previously passed the House of Representatives by a vote of 335-97. The White House has indicated President Biden will sign the bill.

If enacted, the Act would amend the Federal Arbitration Act to prohibit enforcement

As we recently reported, California juries continue to award massive verdicts to employees with alarming regularity.  And, just in time for the holidays, a Los Angeles Superior Court jury upped the ante on Thursday, handing a fired insurance company executive a verdict totaling $155.4 million – including $150 million in punitive damages.

Plaintiff Andrew Rudnicki worked for Farmers Insurance Exchange as a senior executive