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Hot List – Summer Recess Edition

Our weekly California Legislature “hot list” provides you with a preview of the bills that are up (as well as other important legislative action) the following week.

California Employer Challenges Restrictive Covenant Use by Out-of-State Employers

Veeva Systems, a California-based, cloud-based software provider for the life sciences industries, has filed a claim in the superior court of California against three companies that use post-termination non-compete, confidentiality and nondisparagement clauses in employment agreements. Veeva alleges that those practices restrict fair competition and violate California law. The claims were filed against New York-based Medidata, Connecticut-based QuintilesIMS and New Jersey-based Sparta Systems. All three of these companies are rivals that have sought court orders against former employees seeking to work for Veeva, as well as filing claims against Veeva itself.

Pay Equity at the Local Level: San Francisco Bans Salary History Inquiries

Under current California law, employers may ask job applicants about their wages in current or former jobs. A new ordinance in San Francisco, however, will make such inquiries illegal.

Another San Francisco Treat: Mayor Lee Signs Salary History Ban

On July 19, 2017, Mayor Ed Lee signed an ordinance that will significantly affect the hiring practices of San Francisco employers. When Ordinance No. 170350 becomes operative on July 1, 2018, it will be illegal for employers to inquire about a job applicant’s salary history or to provide such information about current or former employees.1

San Francisco Becomes Latest to Ban Salary History Inquiries

Joining a growing list of state and local governments, San Francisco Mayor Ed Lee today signed an ordinance which will ban employers from asking job applicants about their salary histories. The new ordinance will go into effect on July 1, 2018.

San Francisco Employers Face New Gender Equality Laws

The San Francisco Board of Supervisors has just added two new employment ordinances to the burgeoning list of employment-related ordinances in the City by the Bay. First, the Parity in Pay Ordinance prohibits employers from inquiring about an applicant’s salary history.

California Supreme Court Clarifies Discovery under PAGA

Emphasizing the broad right of discovery and the remedial nature of the California Private Attorneys General Act of 2004, the California Supreme Court has ruled that, in pretrial discovery, plaintiffs under PAGA has a right to employer records containing other employees’ names and contact information. Williams v. Marshalls of California, LLC, No. S227228 (July 13, 2017).

California Court Certifies FCRA Class of Over Forty Thousand Applicants

As Littler has reported, the number of class action lawsuits against employers alleging violations of the Fair Credit Reporting Act (FCRA) has continued to spike. Most lawsuits proceed in federal court, but the FCRA allows plaintiffs to file in either federal or state court. On July 13, 2017, a class action was certified in state court in Los Angeles. The suit alleges violations of the FCRA’s disclosure and notice provisions. The state court judge did not decide any issues of liability, but rather that those questions can be decided in one proceeding on behalf of the class members. The court’s opinion serves as another reminder of the importance of vigilance with regard to FCRA compliance.

Hot List – What’s Happening in the California Legislature 7/17-7/21

Our weekly California Legislature “hot list” provides you with a preview of the bills that are up (as well as other important legislative action) the following week.

Employers Litigating PAGA Actions Take Hit From California Supreme Court

In a unanimous decision, the California Supreme Court ruled late last week that plaintiffs in lawsuits brought pursuant to the California Private Attorneys General Act (PAGA) can seek the contact information for their fellow “aggrieved employees” at the outset of their lawsuit, without a showing of good cause for the potentially private information. As any employer who has faced a PAGA action knows, a list of contact information for all employees can be a treasure trove of information that should be protected from disclosure at all costs, so this decision could have serious repercussions.