Justia Labor & Employment Law Opinion Summaries
Articles Posted in California Courts of Appeal
Mandell-Brown v. Novo Nordisk Inc.
Plaintiff Melissa Mandell-Brown filed a complaint against Novo Nordisk, Inc. and Zamaneh Zamanian, asserting 16 causes of action, including claims for discrimination, sexual harassment, and retaliation under the Fair Employment and Housing Act (FEHA) and the Labor Code, as well as common law claims for breach of contract, wrongful termination, and intentional infliction of emotional distress. Defendants filed a motion for summary judgment, supported by a separate statement of 161 undisputed facts, attorney declarations, and witness declarations. Plaintiff did not file an opposition to the motion or a separate statement.The Superior Court of Los Angeles County granted the defendants' motion for summary judgment after plaintiff failed to file the required opposition or separate statement, despite being granted two continuances. The court found no genuine issues of material fact and concluded that the plaintiff could not prove the elements of her causes of action. Plaintiff appealed the decision.The California Court of Appeal, Second Appellate District, Division Five, reviewed the case. The court held that the trial court did not abuse its discretion under Code of Civil Procedure section 437c, subdivision (b)(3), by granting the motion based on the plaintiff’s failure to file the requisite separate statement. The appellate court noted that the trial court had the discretion to grant the motion for summary judgment when the opposing party fails to comply with the requirement of a separate statement. Given the complexity of the case and the plaintiff's failure to submit any opposition or appear at the hearing, the appellate court affirmed the trial court's judgment. View "Mandell-Brown v. Novo Nordisk Inc." on Justia Law
Moniz v. Adecco USA, Inc.
Rachel Moniz and Paola Correa filed separate lawsuits against Adecco USA, Inc. under the Private Attorney General Act of 2004 (PAGA), alleging violations of the Labor Code. Moniz and Adecco settled their case, but Correa challenged the fairness of the settlement. The trial court approved the revised settlement over Correa's objections and awarded attorney’s fees to Moniz’s counsel. Correa's request for a service award and attorney’s fees for her own work was largely denied. Correa appealed, arguing the trial court's analysis of the revised settlement was flawed and that her request for attorney’s fees and a service award should have been granted.The San Mateo County Superior Court overruled Adecco's demurrer in Moniz's case, while the San Francisco Superior Court sustained Adecco's demurrer in Correa's case. Correa's motion to intervene in Moniz's suit was denied, and her subsequent appeal was also denied. The trial court approved Moniz's settlement with Adecco, awarding Moniz a service award and attorney’s fees, but denied Correa’s requests. Correa's motions for a new trial and to vacate the judgment were denied, leading to her appeal.The California Court of Appeal, First Appellate District, Division Four, reviewed the case. While the appeal was pending, the California Supreme Court decided Turrieta v. Lyft, Inc., which disapproved of the reasoning in Moniz II regarding Correa’s standing. The Court of Appeal concluded that Correa and her counsel lacked standing to challenge the judgment based on the Supreme Court's decision in Turrieta. Consequently, the appeals were dismissed. View "Moniz v. Adecco USA, Inc." on Justia Law
Santa Ana Police Officers Assn. v. City of Santa Ana
The Santa Ana Police Officers Association (SAPOA) and certain anonymous City of Santa Ana police officers (Doe Officers) sued the City of Santa Ana, alleging wrongful disclosure of confidential personnel records, failure to investigate a complaint about the disclosure, and denial of a request for related communications. The first amended complaint included four causes of action: violation of Penal Code section 832.7 and Evidence Code sections 1043 and 1045, negligence, failure to investigate under Penal Code sections 832.5 and 832.7, and violation of the Meyers-Milias Brown Act (MMBA).The Superior Court of Orange County sustained the City’s demurrer to the first amended complaint without leave to amend, leading to the dismissal of the case. The court found that the Doe Officers could not proceed anonymously without statutory authority or court authorization. It also concluded that the SAPOA lacked standing and that there was no private right of action for the alleged violations of the Penal Code and Evidence Code sections cited.The California Court of Appeal, Fourth Appellate District, Division Three, reviewed the case. The court affirmed the judgment as to the Doe Officers, agreeing they lacked authorization to proceed anonymously. It also affirmed the trial court’s decision regarding the first, second, and fourth causes of action, finding no private right of action for damages under the cited statutes and that the SAPOA failed to exhaust administrative remedies for the MMBA claim. However, the appellate court reversed the judgment concerning the third cause of action, holding that the SAPOA had standing to seek mandamus relief to compel the City to investigate the complaint and notify the SAPOA of the disposition, as required by Penal Code sections 832.5 and 832.7. The case was remanded for further proceedings on this cause of action. View "Santa Ana Police Officers Assn. v. City of Santa Ana" on Justia Law
Serrano v. Public Employees’ Retirement System
Gerry Serrano, a police officer for the City of Santa Ana, took a leave of absence to serve as president of the Santa Ana Police Officers Association. The Public Employees’ Retirement System (CalPERS) determined that certain special pay additives Serrano received before and during his service as Association president could not be included in his pension. The Administrative Board of CalPERS and the Superior Court of Sacramento County affirmed the exclusion of most of these pay additives from Serrano’s pension. Serrano appealed, arguing that Government Code section 3558.8 mandates he cannot lose any compensation, including pensionable compensation, while serving as the Association president. He also challenged the specific exclusion of a confidential premium and holiday pay from his pensionable compensation.The Superior Court of Sacramento County denied Serrano’s petition for writ of administrative mandamus, which sought to vacate the Board’s decision and include all pay additives in his retirement calculation. Serrano then appealed to the California Court of Appeal, Third Appellate District.The California Court of Appeal, Third Appellate District, affirmed the lower court’s decision. The court held that section 3558.8 did not require the compensation Serrano earned as a police sergeant to be entirely pensionable while he served as Association president. The court concluded that the confidential premium was not pensionable because it constituted nonpensionable overtime and did not meet the regulatory definition for the confidentiality premium. Additionally, the court found that Serrano’s holiday pay was not pensionable because he was not required to work on holidays, as required by the relevant regulation. The court’s decision was based on the interpretation of the Retirement Law and the specific definitions and requirements for pensionable compensation under that law. View "Serrano v. Public Employees' Retirement System" on Justia Law
Lowry v. Port San Luis Harbor Dist.
John Lowry, a harbor patrol officer, suffered physical and psychiatric injuries, including PTSD, from a workplace accident. His psychiatrist deemed him unfit to return to work, and the Port San Luis Harbor District (the District) indicated that his only option was retirement. Lowry applied for disability retirement, but the District denied his application, stating insufficient information to determine disability. The California Public Employees’ Retirement System (CalPERS) also denied his application, and the District terminated his employment, claiming he voluntarily resigned, which was later admitted to be untrue.The trial court granted summary judgment in favor of the District, concluding that Lowry was not eligible for relief under the California Fair Employment and Housing Act (FEHA) because he could not perform his essential job duties with or without reasonable accommodations. The court found that disability retirement does not qualify as a term, condition, or privilege of employment under FEHA.The California Court of Appeal, Second Appellate District, Division Six, affirmed the trial court's decision. The court held that the denial of disability retirement payments is not an adverse employment action under FEHA. Disability retirement payments serve as income replacement for employees who can no longer work and do not facilitate continued employment, job performance, or advancement opportunities. The court concluded that an individual who is not a qualified employee cannot bring a disability discrimination claim under FEHA for the denial of disability retirement payments. The judgment in favor of the District was affirmed. View "Lowry v. Port San Luis Harbor Dist." on Justia Law
Rodriguez v. Packers Sanitation Services
Packers Sanitation Services Ltd., LLC (Packers) employed Jose A. Parra Rodriguez (Parra) in California from April 2019 to July 2021. In February 2022, Parra filed a complaint against Packers under the Labor Code Private Attorneys General Act of 2004 (PAGA), seeking civil penalties for alleged violations of the Labor Code and California Code of Regulations. Packers moved to compel arbitration based on an agreement Parra allegedly signed, which included a clause for binding individual arbitration. Parra opposed the motion, arguing he did not recall signing the agreement, his PAGA claims lacked an individual component, and the claims fell under exceptions to arbitration.The Superior Court of Imperial County held an evidentiary hearing and found Parra had signed the agreement. However, the court denied the motion to compel arbitration, interpreting "current law" to mean the law as it stood in 2019, when Iskanian v. CLS Transportation Los Angeles, LLC held PAGA claims were not subject to arbitration. The court concluded the parties had not agreed to arbitrate PAGA claims at all.The Court of Appeal, Fourth Appellate District, Division One, State of California, reviewed the case. Packers argued that under Viking River Cruises, Inc. v. Moriana, Parra’s individual PAGA claim should be compelled to arbitration, and non-individual claims should be dismissed. Parra contended his complaint did not include individual PAGA claims, citing Balderas v. Fresh Start Harvesting, Inc., which held a plaintiff could forgo individual relief and bring a representative PAGA action.The Court of Appeal affirmed the lower court's decision, agreeing with Parra that his complaint did not assert individual PAGA claims. The court found that Parra had not sought individual PAGA relief and thus, there were no individual claims to compel to arbitration. The court did not address whether a PAGA action must include an individual claim, as this issue was not ripe for consideration in this appeal. View "Rodriguez v. Packers Sanitation Services" on Justia Law
Ramirez v. Charter Communications, Inc.
Angelica Ramirez sued her former employer, Charter Communications, Inc., under the California Fair Employment and Housing Act (FEHA) for discrimination, harassment, retaliation, and wrongful discharge. Charter moved to compel arbitration based on an arbitration agreement signed by Ramirez during her onboarding process. The trial court found the agreement contained unconscionable provisions and refused to enforce it.The Superior Court of Los Angeles County found the arbitration agreement to be a contract of adhesion and identified several substantively unconscionable provisions, including shortened filing periods for claims, improper allocation of attorney fees, and lack of mutuality in claims subject to arbitration. The court denied Charter's motion to compel arbitration. Charter appealed, and a different panel of the Court of Appeal affirmed the trial court's decision, agreeing that the agreement contained multiple unconscionable provisions.The California Supreme Court reviewed the case and concurred that three provisions were substantively unconscionable but remanded the matter to the Court of Appeal to reconsider whether the unconscionable provisions could be severed from the agreement. On remand, the Court of Appeal concluded that severing the unconscionable provisions would not further the interests of justice. The court found that the agreement's central purpose was tainted with illegality and that the multiple unconscionable provisions indicated a systematic effort by Charter to impose arbitration in a manner that favored the employer. Therefore, the Court of Appeal affirmed the trial court's refusal to enforce the arbitration agreement. View "Ramirez v. Charter Communications, Inc." on Justia Law
Arzate v. ACE American Insurance Company
In this wage-and-hour class action, the plaintiffs, employees of ACE American Insurance Company (ACE), alleged that ACE misclassified them as exempt employees and failed to provide benefits required for nonexempt employees under state law. The plaintiffs also added claims under the Private Attorneys General Act of 2004 (PAGA) for the same alleged violations. The plaintiffs had signed arbitration agreements as a condition of their employment, which required them to submit employment-related legal claims to arbitration.The Superior Court of Los Angeles County initially granted ACE's motion to compel arbitration and stayed the case pending arbitration. However, neither party initiated arbitration. The plaintiffs then moved to lift the stay, arguing that ACE was required to initiate arbitration and had waived its right to arbitrate by failing to do so. The trial court agreed with the plaintiffs, finding that ACE's inaction was inconsistent with its right to arbitrate and lifted the stay.The Court of Appeal of the State of California, Second Appellate District, reviewed the case. The court held that the plaintiffs, not ACE, were required to initiate arbitration under the terms of the arbitration agreements. The agreements specified that the party wanting to start the arbitration procedure should submit a demand, and in this context, it referred to the plaintiffs who had employment-related legal claims. The court concluded that ACE did not breach the arbitration agreements or waive its right to arbitration by failing to initiate the process. Consequently, the trial court's order lifting the stay was reversed, and ACE was awarded its costs on appeal. View "Arzate v. ACE American Insurance Company" on Justia Law
Sandhu v. Bd. of Admin. of CalPERS
The case involves Tarlochan Sandhu, who worked for various public agencies as a finance and accounting professional and was a member of CalPERS, receiving retirement benefits upon his retirement in 2011. After retiring, Sandhu was hired by Regional Government Services (RGS) in 2015, which assigned him to work for several cities. RGS considered Sandhu its employee, providing him with benefits and paying him, while the cities paid RGS for his services. CalPERS determined Sandhu was a common law employee of the cities, violating postretirement employment rules, and the trial court upheld this determination.The Superior Court of Sacramento County reviewed the case, where Sandhu challenged CalPERS’s decision, arguing he was not a common law employee and that the decision was based on underground regulations. The trial court applied its independent judgment, finding the evidence supported CalPERS’s determination that Sandhu was a common law employee of the cities. The court found the cities had the right to control Sandhu’s work, which is the principal test for an employment relationship, and that several secondary factors also supported this conclusion.The California Court of Appeal, Third Appellate District, reviewed the case. The court affirmed the trial court’s judgment, holding that the common law test for employment applies and that substantial evidence supported the trial court’s finding that Sandhu was a common law employee of the cities. The court also found that Sandhu forfeited his argument regarding underground regulations by not properly raising it in the trial court. The judgment was affirmed, and the parties were ordered to bear their own costs on appeal. View "Sandhu v. Bd. of Admin. of CalPERS" on Justia Law
Vo v. Technology Credit Union
Thomas Vo signed an employment arbitration agreement with Technology Credit Union (TCU) before starting his job in 2020. The agreement required both parties to submit any employment-related disputes to binding arbitration. Vo was later terminated and sued TCU for violations of the Fair Employment and Housing Act (FEHA), including harassment, discrimination, and wrongful termination. TCU moved to compel arbitration, but Vo opposed, arguing the agreement was unconscionable because it did not allow for prehearing third-party discovery.The Santa Clara County Superior Court found the arbitration agreement procedurally unconscionable as a contract of adhesion and substantively unconscionable because it did not permit third-party discovery, relying on Aixtron, Inc. v. Veeco Instruments Inc. The court denied TCU's motion to compel arbitration, leading TCU to appeal the decision.The California Court of Appeal, Sixth Appellate District, reviewed the case de novo. The court found that while the agreement was procedurally unconscionable, it was not substantively unconscionable. The court noted that the JAMS Rules incorporated into the agreement allowed the arbitrator to order additional discovery, including third-party discovery, if necessary. The court emphasized that the agreement should be interpreted to allow adequate discovery to vindicate statutory claims, as clarified in Ramirez v. Charter Communications, Inc.The appellate court reversed the trial court's order and remanded with instructions to grant TCU's motion to compel arbitration and stay the proceedings pending arbitration. The court concluded that the arbitration agreement was enforceable and not unconscionable. View "Vo v. Technology Credit Union" on Justia Law