Reversing the dismissal of an employee’s complaint for constructive discharge in violation of public policy under California law, the California Court of Appeal has ruled that the employee stated a claim where he alleged he was forced to resign because his employer required him to use his own vehicle extensively for work without reimbursement. Vasquez v. Franklin Management Real Estate Fund, Inc., No. B245735 (Cal. Ct. App. Dec. 31, 2013). Stating the employer “effectively passed on a portion of its normal operating expenses to a low wage worker,” the Court noted that the allegations, if proven, would establish the employer caused the employee to be paid less than the minimum wage and created intolerable working conditions in contravention of California public policy. However, the Court affirmed the dismissal of the employee’s intentional infliction of emotional distress claim.
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