California Employment Law Update

Category Archives: PAGA

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November 2023 California Employment Law Notes

We invite you to review our newly-posted November 2023 California Employment Law Notes, a comprehensive review of the latest and most significant developments in California employment law. The highlights include: Company That Hired Competitor’s Employee Was Not Entitled To Arbitrate Claims Disability Discrimination Claim Was Properly Dismissed On Summary Judgment Employee’s Attorney’s “Pervasive Incivility” Justified … Continue Reading

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  A recent unpublished California … Continue Reading

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 … Continue Reading

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 … Continue Reading

COVID-19 Emergency Order Extending Statute Of Limitations For Civil Cases Upheld

LaCour v. Marshalls of Cal., LLC, 2023 WL 5543622 (Cal. Ct. App. 2023) Plaintiff Robert LaCour, a former “loss prevention specialist” for Marshalls, appealed from a judgment in favor of his former employer and certain affiliated entities.  Marshalls filed a demurrer arguing that because LaCour’s employment with Marshalls ended in May 2019, he had only … Continue Reading

PAGA Plaintiffs May Maintain Representative Claims In Court After Individual Claims Are Compelled To Arbitration

Adolph v. Uber Techs., Inc., 14 Cal. 5th 1104 (2023) After months of anticipation, the California Supreme Court answered “yes” to the critical question of whether “aggrieved” PAGA plaintiffs retain their standing to pursue representative claims in court after their individual claims have been compelled to arbitration. Erik Adolph worked as a driver for Uber, … Continue Reading

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 … Continue Reading

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 … Continue Reading

July 2023 California Employment Law Notes

We invite you to review our newly-posted July 2023 California Employment Law Notes, a comprehensive review of the latest and most significant developments in California employment law. The highlights include: Enforcement of PAGA Carve Out Suggests Need For New Revisions To Arbitration Agreements PAGA Debt Not Dischargeable in Bankruptcy Distributors Not Liable For Unpaid Wages Of … Continue Reading

Enforcement of PAGA Carve Out Suggests Need For New Revisions To Arbitration Agreements

Duran v. EmployBridge Holding Co., 92 Cal. App. 5th 59 (2023) In 2014, the California Supreme Court determined that Private Attorneys General Act (“PAGA”) claims are immune from arbitration in Iskanian v. CLS Transp. Los Angeles, LLC – which, unsurprisingly, led to an avalanche of PAGA claims being filed as plaintiffs’ lawyers scrambled to make their cases … Continue Reading

PAGA Debt Not Dischargeable in Bankruptcy

In re Patacsil, 2023 WL 3964908 (Bankr. E.D. Cal. June 9, 2023) The Private Attorneys General Act (PAGA) permits aggrieved employees to file representative action to recover civil penalties for Labor Code violations.  The law allocates 75% of any recovery to the Labor and Workforce Development Agency (LWDA) for “enforcement of labor laws” and “education … Continue Reading

Exemption of Financial Professionals From ABC Test And Retroactive Application Are Constitutional

Quinn v. LPL Fin. LLC, 91 Cal. App. 5th 370 (2023) Alleging misclassification, John Quinn brought a PAGA action on behalf of a class consisting of securities broker-dealers and investment advisers against his employer LPL Financial.  Quinn brought the PAGA action prior to the enactment of AB 2257, which exempted the occupations identified in Quinn’s PAGA … Continue Reading

No Final Paycheck Due After End Of Temporary Assignment

Young v. RemX Specialty Staffing, 91 Cal. App. 5th 427 (2023) Vanessa Young worked as an employee of staffing company RemX Specialty Staffing and was temporarily assigned to work at Bank of the West.  Young allegedly “verbally abused” a RemX representative on a call about delivery of her paycheck.  Young claimed that the RemX representative “basically” … Continue Reading

Don’t Expect to Discharge That PAGA Debt in Bankruptcy

As we have written here on multiple occasions, the Private Attorneys General Act (PAGA) disadvantages employers in several ways.  Despite permitting recovery similar to what might be obtained in a class action, class certification rules do not apply and it is an open question whether courts can even limit an unmanageable claim before trial.  Plaintiffs … Continue Reading

Under-the-Radar Concessions in Adolph Could Shorten PAGA’s Parade Of Horribles

On May 10, 2023, the California Supreme Court heard oral argument in Adolph v. Uber Technologies, Inc., a closely watched case that will decide whether a Private Attorneys General Act (PAGA) plaintiff loses standing to pursue a representative claim when their individual PAGA claim is compelled to arbitration. Observers hoping for a sign that the court was inclined … Continue Reading

It May Be Time To Update Those Arbitration Agreements Again!

Back in the “good old days,” arbitration agreements barred just about any type of civil litigation that was filed in court. Then, as we reported in 2014, the California Supreme Court determined that Private Attorneys General Act (“PAGA”) claims are immune from arbitration in Iskanian v. CLS Transp. Los Angeles, LLC – which, unsurprisingly, led … Continue Reading

What Appellate Courts Are Missing About PAGA Standing After Viking River Cruises

The California Supreme Court has scheduled oral argument for May 9, 2023 in Adolph v. Uber Technologies, Inc., a closely watched case that concerns whether a Private Attorneys General Act (PAGA) plaintiff loses standing to pursue a representative claim when their individual PAGA claim is compelled to arbitration.  This question was left open by the blockbuster … Continue Reading

The Fate of PAGA Representative Action Waivers in Arbitration Agreements will be Decided by August

As we reported (here), on June 15, 2022, a near unanimous U.S. Supreme Court held that the Federal Arbitration Act (“FAA”) preempted the California Supreme Court’s controversial decision in Iskanian v. CLS Transportation Los Angeles, LLC, 59 Cal. 4th 348 (2014), which held that actions brought under the California Labor Code Private Attorneys General Act (“PAGA”) … Continue Reading

March 2023 California Employment Law Notes

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: No Claim By Employee Who Was Friends With Alleged Harasser Pregnancy Discrimination Lawsuit Was Properly Dismissed Employer That Failed To Layoff Employee Before She Became … Continue Reading

Employee’s PAGA Action Was Not Limited By Sick Pay Statute

Wood v. Kaiser Found. Hosps., 88 Cal. App. 5th 742 (2023) Ana Wood brought a PAGA action against her employer Kaiser for alleged failure to correctly pay for three paid sick days as required under California’s Healthy Workplaces, Healthy Families Act (the “Act”). The Act provided for compensatory relief and civil penalties, but restricted relief … Continue Reading

Court Compels Individual But Not Representative Claims To Arbitration

Piplack v. In-N-Out Burgers, 2023 WL 2384502 (Cal. Ct. App. 2023) In-N-Out Burgers appealed from the trial court’s denial of its motion to compel arbitration. The trial court denied the motion because In-N-Out’s arbitration agreement contained an unenforceable PAGA waiver. After the trial court’s ruling, the United States Supreme Court held in Viking River Cruises, … Continue Reading

Court of Appeal Rules Plaintiff May Recover PAGA Penalties For Violating Sick Pay Statute

In the first ruling of its kind, the California Court of Appeal (4th Dist.) recently ruled that a plaintiff may pursue penalties under the Private Attorneys General Act (PAGA) for alleged violations of California’s sick pay statute, the Healthy Workplaces, Healthy Families Act of 2014.  Wood v. Kaiser Found. Hosps., 2023 WL 2198664 (Cal. Ct. … Continue Reading

Employees Lose on PAGA Claims in Court Following Loss in Arbitration

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 … Continue Reading
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