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Labor & Employment

The following summaries are of recent published decisions of the California appellate courts, the Ninth Circuit, and the United States Supreme Court. The summaries are presented without regard to whether Severson & Werson represented a party in the case.

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The FAA does not preempt California law insofar as it invalidates a waiver of an employee's right to bring PAGA claims arising out of Labor Code violations that affected the plaintiff employee.  However, the FAA does preempt California law (Iskanian v. CLS Transportation Los Angeles, LLC (2014) 59 Cal.4th 348 and progeny) insofar as it precludes waiver of the employee's… Read More

This decision affirms a summary judgment for Walmart on a model's claim for waiting time penalties for Walmart's failure to pay her all earned wages after each one- or two-day photo shoot.  Although triable issues of fact remained as to whether plaintiff was an employee to whom Labor Code 203 applied, Walmart had established its defense of a good faith… Read More

An airline employee whose duties involved loading and unloading baggage and cargo onto and from airplanes that flew interstate routes was an employee engaged in interstate commerce and thus the FAA did not apply to the arbitration clause in his employment agreement.  9 USC 1 exempts a class of workers--not a class of their employers; so the fact that Southwest… Read More

This decision reverses a summary judgment for defendant, finding a triable issue of fact as to whether defendant willfully violated the FCRA's requirement that an employer provide a job applicant a stand alone disclosure of its potential use of credit reports for employment screening.  (15 USC 1681b(b)(2)(A).)  Wilful for this purpose includes reckless conduct that increases the risk of violation… Read More

While an easily correctible defect is not a disability protected under the Americans with Disabilities Act, a disability need not be permanent or long-term to be protected.  Here, the employee adequately alleged an ADA claim against her former employer by pleading facts plausibly establishing that she had a physical impairment both during an immediate post-surgical period after a bone biopsy… Read More

One union representing some of Antioch's employees brought an administrative grievance making the same claim as the retired employee plaintiff brought in this later suit--that the City was stinting them on contributions for their benefit to CalPers,  This decision holds that the due process limits on collateral estoppel keep it from operating to bar the current suit based on the… Read More

The common law rule of exclusive concurrent jurisdiction applies to PAGA suits.  Nothing in the PAGA statutes clearly or unequivocally evince an intent to abrogate that well-established rule in PAGA suits.  Absence of an express first-filed suit requirement in the statute is insufficient to show such an intent.  Invoking the exclusive concurrent jurisdiction rule, the trial court properly stayed this… Read More

Plaintiff employee's initial complaint sought individual and class relief for Labor Code violations as well as PAGA claims for statutory penalties for the same violations.  After defendant employer moved to compel arbitration, plaintiff amended the complaint to delete the individual and class claims, leaving only the PAGA claims.  This decision holds that the amendment was effective to avoid arbitration.  Under… Read More

Four federal statutes bar discrimination on the basis of race, gender, disability or other protected characteristics by recipients of federal financial assistance; namely Title VI and IX of the 1964 Civil Rights Act, the Rehabilitation Act and the Affordable Care Act.  None of these acts expressly grant private rights of action to victims of discrimination that violates those Acts' provisions. … Read More

While an employer has an affirmative duty to provide employees with a safe place to work (Lab. Code, § 6400(a); Seabright Ins. Co. v. US Airways, Inc. (2011) 52 Cal.4th 590, 603), this decision holds that this duty does not  include ensuring that an off-site meeting place for coworkers and business associates--such as at an employee’s private residence is safe… Read More

Employer's arbitration clause was unenforceable because it was unconscionable.  The clause was a mandatory, non-negotiable requirement of employment.  It was procedurally unconscionable because it was given to plaintiff only in English, which he cannot read, and without a schedule of the arbitration fees he could be charged.  It was substantively unconscionable because it allowed the arbitrator to shift attorney fees… Read More

A summary judgment in favor of defendant in this whistleblower action is reversed because the defendant brought the motion using the McDonnell Douglas test rather than the statutory test under Lab. Code 1102.6, as explicated in Lawson v. PPG Architectural Finishes, Inc. (2022) 12 Cal.5th 703.  The decision also holds that the same Lawson test applies under Gov. Code 8547.10,… Read More

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