California is the birthplace of the franchise business model. Today, there are approximately 62,000 independent franchisees operating in California, employing more than 1.1 million state residents.
Articles about California Labor And Employment Law.
California Supreme Court Rules That State’s Prevailing Wage Law Is Not Quite So Prevailing: Charter Cities Need Not Require Prevailing Wages on Publicly Funded Municipal Construction Projects
On July 2, 2012, the California Supreme Court issued its long-awaited decision in State Building and Constructions Trades Councils of California, AFL – CIO v. City of Vista, No. S173586. The court held that locally funded public works projects performed by chartered cities are municipal affairs under the California Constitution and, as a result, the wages paid to workers on charter city projects are not subject to California’s prevailing wage law. While this decision resolves the issue as to whether the municipal affairs or “Home Rule” doctrine can be used by charter cities to avoid the application of the state’s prevailing wage law, interested parties will seek to explore the boundaries of the ruling.
California Court Upholds Class Action and PAGA Waivers in Arbitration Agreement
In Iskanian v. CLS Transportation Los Angeles, LLC, a California appellate court applied the Federal Arbitration Act (FAA) and the U.S. Supreme Court’s interpretation of the FAA in AT&T Mobility LLC v. Concepcion to affirm a trial court’s order granting a motion to compel individual arbitration of the plaintiff-employee’s wage and hour claims, dismiss the plaintiff’s class action claims, and preclude the plaintiff from pursuing claims under California’s Private Attorney General Act other than the plaintiff’s own individual PAGA claims. In so holding, the court concluded that the California Supreme Court’s decisions in Gentry v. Superior Court, Broughton v. Cigna Healthplans, and Cruz v. PacifiCare Health Systems were all effectively overruled by Concepcion.
Certain Witness Statements Protected by Attorney Work Product Privilege, California High Court Rules
Recordings of witness interviews conducted by investigators employed by counsel and the identity of witnesses from whom counsel obtained statements are subject to at least a qualified work product protection, the California Supreme Court has ruled. Coito v. Superior Court, No. S181712 (Cal. Jun. 25, 2012). In addition, the Court held such statements and information could be subject to absolute privilege if disclosure would reveal an attorney’s tactics, impressions, or evaluation of the case. The Court reversed an order compelling discovery and returned the case to the trial court.
California Law No Bar to Jury Trial Waiver in Arbitration Agreement, California Appeal Court Rules
California law does not prohibit an employer from requiring an employee to waive his or her right to a jury trial in an agreement with an arbitration provision, the California Court of Appeal has ruled. Pulli v. Pony Int’l, LLC, No. D059137 (Cal. Ct. App. June 19, 2012). The Court held the law simply prohibits an employer from gaining an employee’s release of a wage claim in certain cases. Accordingly, it reversed an order denying the employer’s motion to compel arbitration of an employee’s breach-of-contract and related claims.
Statistical Evidence May Show Prima Facie Age Discrimination in California, Federal Court Rules
Employees can use statistical evidence to establish a prima facie case of age discrimination under California Fair Employment and Housing Act (“FEHA”), the federal appeals court in San Francisco has held. Schechner v. KPIX-TV, No. 11-15294 (9th Cir. May 29, 2012). The statistics, however, must present a sufficiently strong showing of a stark contrast in impact on protected classes, the Court emphasized. The plaintiffs in this case, however, failed to overcome the “same actor inference” to show the employer’s legitimate business reasons for their layoff were pretextual. Therefore, the Court affirmed summary judgment in favor of the employer.
California Law Limiting Employee Arbitration Agreement Waivers Cannot Stand after Concepcion, Court Finds
The Federal Arbitration Act preempts California law disfavoring the enforcement of a class action waiver in employee arbitration agreements, the California Court of Appeal has ruled. Iskanian v. CLS Transp. Los Angeles, LLC, No. B235158 (Cal. Ct. App. June 4, 2012). The Court noted the U.S. Supreme Court’s decision in AT&T Mobility LLC v. Concepcion, 131 S. Ct. 1740 (2011), overruled California law. (For more information, please see our article, Supreme Court Strikes Down California’s Prohibition of Class Action Waivers in Arbitration Agreements.) The Court also ruled the FAA preempted the plaintiff’s claims under the California Private Attorney General Act (“PAGA”). Accordingly, it affirmed an order compelling arbitration and dismissing the employee’s class claims for alleged Labor Code violations and upheld a class action waiver.
Clerks/Cashiers Need Not Be Provided Seats While Operating Cash Register, Court Holds
In a much anticipated decision, a federal judge in California’s Southern District ruled last week that CVS Pharmacy was not required to provide its cashiers with seats to use while operating cash registers. The plaintiff is a former customer service representative (“clerk/cashier”) at CVS who filed a lawsuit on behalf of all California customer service representatives alleging that CVS violated Wage Order 7–2001, section 14(A) when it failed to provide its clerks/cashiers with suitable seats during the performance of their job duties. Section 14 of Wage Order 7–2001 provides:
Car Wash Operator Found Liable for Unpaid Wages, Penalties as Successor of Unrelated Business
A car wash was liable for unpaid wages and penalties owed by a separate and unrelated business that had operated a car wash at the same location before the property owner evicted it, the California Court of Appeal has held under Section 2066 of the California Labor Code, which applies exclusively to the car washing and polishing industry. People ex rel. Harris v. Sunset Car Wash, LLC, No. B233915 (Cal. App. Dist. 2 Div. 5 May 16, 2012). Affirming a $120,000 judgment against the new car wash operator, the Court concluded it was a “successor” within the meaning of Section 2066 of the California Labor Code because it operated in the same location and performed the same services. Justice Orville A. “Jack” Armstrong issued a vigorous dissent, declaring the Court’s decision violated the precepts of statutory interpretation, misapprehended legislative intent, and visited a gross injustice on the new car wash operator.
Partner Could Sue Partnership for Retaliation under FEHA, California Appeals Court Rules
A physician-partner in a medical practice could assert a retaliation claim under the California Fair Employment and Housing Act, the California Court of Appeal has held, reversing a judgment in favor of a medical partnership. Fitzsimons v. California Emergency Physicians Med. Group, No. A131604 (Cal. App. Dist. 1 Div. 3 May 16, 2012). The physician-partner reported alleged harassment of female employees within the practice while she served as the practice’s medical director. The Court ruled that, because the FEHA protects “any person” from retaliation, the physician could assert a claim for retaliation, even though, as a partner, she could not sue the practice for employment discrimination.
Prevailing Parties Cannot Recover Attorney’s Fees for Meal or Rest Violations under California Law
The California Supreme Court has reversed an award of attorney’s fees to an employer that successfully defended a claim for failure to provide rest periods mandated under Section 226.7 of the California Labor Code. Kirby v. Immoos Fire Protection, Inc., No. S185827 (Cal. Apr. 30, 2012). In a seminal decision, the Court ruled the California Labor Code does not permit an attorney’s fee award to a prevailing party on such a claim. This ruling follows on the heels of the Court’s decision that employers need not ensure that their workers take meal periods required by California law, but only that workers are provided the meal periods. Brinker Restaurant Corp. v. Superior Court (Hohnbaum), No. S166350 (Calif. Apr. 12, 2012). For more on Brinker, see our article, California High Court Clarifies California Meal-and-Rest Rules.
Out of the Darkness, into the Shadows:The DLSE Further Modifies Its Interpretation of the California Wage Theft Prevention Act
On April 12, 2012, the Division of Labor Standards Enforcement (DLSE) substantially revised its template notice form (“Notice”) and once again amended its FAQs regarding an employer’s obligations under California’s Wage Theft Prevention Act (WTPA). Cal. Lab. Code § 2810.5; see www.dir.ca.gov/dlse/FAQs-NoticeToEmployee.html.1 This ASAP explains the changes in the template notice and the FAQs.
California High Court Clarifies California Meal-and-Rest Rules
In welcome news for many California employers facing class actions based on the state break rules, the California Supreme Court has held that employers need not ensure that their workers take meal periods required by California law, but only that workers are provided the meal periods. The employer’s obligation “is to relieve its employee of all duty, with the employee thereafter at liberty to use the meal period for whatever purpose he or she desires, but the employer need not ensure that no work is done,” the Court explained. Brinker Restaurant Corp. v. Superior Court (Hohnbaum), No. S166350 (Calif. Apr. 12, 2012). Should the employee choose to work after being relieved of duty, however, he or she must receive pay for the time worked, but is not entitled to the one hour of premium pay under California law for working during a meal break.
California Supreme Court Clarifies Employer Meal & Rest Period Duties
After three years, the California Supreme Court has finally issued its much-anticipated decision regarding how employers must manage meal periods and rest breaks. On April 12, 2012, the state’s highest court issued its unanimous decision in Brinker Restaurant Corporation v. Superior Court, clarifying California employers’ obligations to “provide” meal periods and “authorize or permit” rest periods. To hear a detailed discussion of the decision and its implications for employers, please join Littler’s webinars on April 17, 2012, from 10 to 11 a.m. PST, and on April 26 from 10:00 to 11:00 a.m. PST.
District Court Shows Way to Obtain Non-Solicitation Injunction in California
Companies seeking to prohibit unlawful solicitation of customers should be encouraged by a recent federal court decision.
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