If a background check includes information about a job applicant’s character, California’s background check law applies, the California Court of Appeal has held, rejecting an employer’s challenge to the California Investigative Consumer Reporting Agencies Act (Cal. Civ. Code § 1786 et seq.) (“ICRAA”). Connor v. First Student, Inc., No. B256075 (Cal. Ct. App. Aug. 12, 2015).
Articles Discussing Human Resource Issues In California.
California Supreme Court: Federal Arbitration Act Preempts Plaintiff’s State Rights
An arbitration clause in a consumer agreement was enforceable, including the class action waiver, despite four supposedly one-sided arbitration provisions in the agreement, the California Supreme Court has held. Sanchez v. Valencia Holding Co., LLC, No. S199119 (Aug. 3, 2015). The much-anticipated decision has significant implications for arbitration agreements between employers and employees.
Amendments to California Paid Sick Leave Law Effective
Significant amendments to California’s Healthy Workplaces, Healthy Families Act of 2014, also known as the California Paid Sick Leave Law, went into effect immediately upon Governor Jerry Brown’s signature on Assembly Bill no. 304 on July 13, 2015.
Paid Sick Time Law Developments in the State of California; Emeryville, California; Eugene, Oregon; and Bloomfield, New Jersey
The wave of new sick leave legislation continues across the country. At the same time, state and local governments continue to refine existing laws to address new laws passed, as well as the complexities that surround providing for and administering paid sick leave benefits.
California Labor Agency Overseeing Paid Sick Leave Law Says Employers Must Use Caution When Asking for Doctors’ Notes
Executive Summary: In a public webinar recently hosted by the California Department of Industrial Relations regarding California’s new paid sick leave law, the state labor agency commented that requiring employees to submit documentation as a condition for payment of sick leave arguably can interfere with the employee’s use of paid sick leave. While the agency’s response was for informational purposes only and, thus, not legally binding, employers in California are advised to exercise caution when implementing the state’s new paid sick leave law.
California Supreme Court Clarifies When An Arbitration Award May Be Corrected
On January 29, 2015, the California Supreme Court issued a decision clarifying the circumstances under which an arbitrator’s award may be corrected. In Richey v. Autonation, Inc., No. BC408319 (Cal. Jan. 29, 2015), the court examined an arbitrator’s award and concluded that, although the arbitrator may have committed error in applying the defendants’ proffered “honest belief” defense (a defense not provisioned under California law) the plaintiff was nevertheless afforded his statutory rights. The court explained that, because the arbitrator determined the plaintiff’s employment was terminated for violating his employer’s policy prohibiting outside employment while on medical leave, the plaintiff was not prejudiced by the arbitrator’s arguably misplaced application of the honest belief defense.
Federal Arbitration Act Preempts State Arbitration Rule, California Court of Appeal Holds
The Federal Arbitration Act (“FAA”) preempts California’s Broughton-Cruz rule, which states arbitration agreements for injunctive relief claims under the state unfair competition and false advertising laws are against public policy and invalid, the California Court of Appeal has held in an insurance consumer class action, allowing arbitration to proceed. McGill v. Citibank, N.A., No. G049838 (Cal. Ct. App. Dec. 18, 2014).
Newspaper Carriers were Employees, Despite Independent Contractor Agreement, California Court Rules
A newspaper misclassified its newspaper carriers as independent contractors, the Superior Court for the County of Sacramento has ruled following a trial in a class action for employees’ unpaid mileage expenses under Section 2802 of the California Labor Code. Sawin v. The McClatchy Co., No. 34-2009-00033950 (Cal. Super. Ct. Sept. 22, 2014). Although the newspaper carriers signed agreements stating they were independent contractors, set their own schedules and routes, and could hire their own workers, the Court found the newspaper exercised such significant control over the newspaper carriers’ performance of their duties that it “belie[d] the contrary pronouncement in the form contracts….”
California Enacts Paid Sick Leave Law
With the enactment of the Healthy Workplaces, Healthy Families Act of 2014 (AB1522), California has become the second state in the nation, after Connecticut, to mandate employers provide their employees, including part-time and temporary workers, paid sick leave.
The Epidemic Continues: California Enacts Statewide Paid Sick Leave Law
On September 10, 2014, California Governor Edmund G. Brown, Jr. signed into law the Healthy Workplaces, Healthy Families Act of 2014 (“California paid sick leave act”) with an effective date of January 1, 2015. With the signing of this law, California becomes the second state to mandate that certain employers provide paid sick leave to employees.1 In addition, at least 13 cities, three of which are in California, have passed their own paid sick leave laws.2
Arbitrator, Not Court, Decides Whether Arbitration Agreement Applies to Class Claims, California Court Rules
Whether the parties to an arbitration agreement agreed to class arbitration is a question for the arbitrator, not the trial court, the California Court of Appeal has ruled, reversing an order dismissing class claims alleging violations of California’s Fair Employment and Housing Act and Unfair Competition Act. Sandquist v. Lebo Automotive, Inc., No. B244412 (Cal. Ct. App. July 22, 2014).
California Supreme Court Holds Independent Contractor Misclassification Claims Can Be Determined by Common Proof – But Only in Certain Circumstances
In its first employment-related class certification decision since its seminal ruling in Duran v. U.S. Bank,1 the California Supreme Court, in a fragmented opinion, reversed the denial of class certification for a group of newspaper delivery carriers who alleged they were employees misclassified as independent contractors. In Ayala v. Antelope Valley Newspapers, Inc.,2 the California high court held that the trial court improperly focused its analysis on variations in how the carriers did their jobs rather than whether the newspaper retained the right to control the method and manner of how they performed their duties through its standard written contracts with the carriers.
Arbitrator, Not Court, Decides Arbitration Agreement’s Enforceability, California Court Holds
A clause delegating to an arbitrator the authority to decide questions of an arbitration agreement’s enforceability was not unconscionable under California law, the California Court of Appeal has ruled. Malone v. Superior Court, No. B253891 (Cal. Ct. App. June 17, 2014).
California High Court: Class Action Waivers in Arbitration Valid, But Waivers of Representative Actions under State Law Are Not
The Federal Arbitration Act preempts California law disfavoring enforcement of a class action waiver in employment arbitration agreements, the California Supreme Court has held, overruling its prior holding to the contrary in Gentry v. Superior Court, 42 Cal. 4th 443 (2007). Iskanian v. CLS Transp. Los Angeles, LLC, No. S204032 (Cal. Jun. 23, 2014).
Employer Did Not Waive Right to Arbitration Despite One-Year Delay, California Court Rules
An employer that petitioned to compel arbitration one year after the employee filed his employment-related complaint did not waive its right to arbitrate the complaint, the California Court of Appeal has ruled, confirming the burden of proving a party waived its right to arbitration is a heavy one. Gloster v. Sonic Automotive, Inc., No. A137081 (Cal. Ct. App. May 21, 2014).