Justia Labor & Employment Law Opinion Summaries

Davis filed sued individual Red Bull executives for age and sexual harassment and hostile work environment in violation of the Fair Employment and Housing Act, and for intentional and negligent infliction of emotional distress. Davis was 56 years old, had been employed by Red Bull for 15 years, and was in a mid-level managerial sales position until he was terminated.Red Bull filed a demand for arbitration with the American Arbitration Association. The individual defendants moved to compel Davis to submit his claims to arbitration. Davis filed a separate lawsuit against Red Bull seeking a declaratory judgment that his claims were not subject to the arbitration agreement. That agreement specifies it is “intended to cover all civil claims which involve or relate in any way to [Davis’s] employment (or termination of employment) with Red Bull, including, but not limited to, claims of employment discrimination or harassment on the basis of . . . sex, age, . . . claims for wrongful discharge, [and] claims for emotional distress.”The trial court concluded and the court of appeal affirmed that the agreement was unconscionable and unenforceable. The court noted the "adhesion" nature of the agreement, which is not mutual and the arbitral discovery process does not guarantee adequate discovery. View "Davis v. Kozak" on Justia Law

Plaintiff, the owner and operator of four massage parlors, received three citations from the Department for violations of California's wage and hour laws. The hearing officer issued findings and an order affirming all three citations, including a total of $198,576 in unpaid wages and liquidated damages for citation no. WA-102321. Plaintiff's subsequent petition for writ of mandate challenging the Commissioner's decision affirming the assessments in citation no. WA-102321 was dismissed by the superior court after his request that it waive the bond requirement under Labor Code section 1197.1, subdivision (c)(3) was denied and he failed to post a bond.The Court of Appeal affirmed and explained that, although section 1197.1, subdivision (c)(3), now requires employers to post a bond as a condition to filing a petition for writ of mandate challenging the Labor Commissioner's citations, employers' substantive, preenactment obligations toward their employees under the Labor Code have not changed. All that changed is the addition of the procedural requirement that plaintiff post a bond to secure payment of the assessed amounts. Therefore, application of that requirement to a proceeding that had not yet been initiated prior to the effective date of section 1197.1, subdivision (c)(3), does not constitute a retroactive application of the statute. The court also held that the trial court did not abuse its discretion in denying plaintiff's request to waive the bond requirement. In this case, plaintiff failed to demonstrate that the trial court's finding that he was not indigent was not supported by substantial evidence. View "Fushan Li v. Department of Industrial Relations" on Justia Law

Jarboe was hired by DKD. Shortly after he began working, Jarboe was transferred to Leehan. Following his termination at Leehan, Jarboe brought this wage and hour action individually and on behalf of a putative class against the Hanlees Auto Group, its 12 affiliated dealerships (each us a separate corporate entity), including DKD and Leehan, and three individuals. The defendants moved to compel arbitration based on an employment agreement between Jarboe and DKD. The trial court granted the motion as to 11 of the 12 causes of action against DKD but denied the motion as to the other defendants. The trial court allowed Jarboe’s claim under the Private Attorneys General Act of 2004 (PAGA), Labor Code section 2698, to proceed in court against all defendants. The trial court refused to stay the litigation pending arbitration of Jarboe’s claims against DKD. The court of appeal affirmed, rejecting an argument that the other defendants are entitled to enforce the arbitration agreement between Jarboe and DKD as third party beneficiaries of Jarboe’s employment agreement or under the doctrine of equitable estoppel. View "Jarboe v. Hanlees Auto Group" on Justia Law

Plaintiff-appellant Virginia Arnold appealed the grant of summary judgment in favor of her employer, defendant-respondent Dignity Health (Dignity) and other individually named defendants. Arnold was employed as a medical assistant. She alleged defendants engaged in discrimination, harassment, and retaliation based on her age and her association with her African-American coworkers, including by terminating her employment in violation of the Fair Employment and Housing Act (FEHA). On summary judgment, the trial court concluded defendants provided evidence of legitimate reasons for plaintiff’s termination and, in rebuttal, plaintiff failed to offer any evidence that defendants’ actions were discriminatory, harassing, or retaliatory. The Court of Appeal concurred with the trial court's findings and affirmed summary judgment. View "Arnold v. Dignity Health" on Justia Law

Robinson worked as a truck driver for Southern in 2015-2017. In 2018, after filing a notice with the California Labor Workforce Development Agency, he filed suit under the Private Attorneys General Act (PAGA) (Lab. Code 2698), alleging that Southern denied Robinson and other employees meal and rest breaks, and, as a result, failed to pay timely wages, furnish complete and accurate wage statements, and pay all wages due upon termination.The San Diego County Superior Court subsequently approved a settlement in a class action that sought individual damages and civil penalties under PAGA for the same alleged Labor Code violations (Gutierrez), which covered all persons employed by Southern in certain jobs, 2013-2018. Robinson and three other employees opted out of the class settlement. Robinson amended the allegations of his complaint to represent Southern employees who opted out of the Gutierrez settlement and persons who were employed by Southern from January 27, 2018, to the present. The court of appeal affirmed the dismissal of the case. Robinson is barred from bringing a PAGA action asserting the same claims that were settled in Gutierrez and lacks standing to bring a representative action on behalf of employees employed during the time period when he was no longer employed by Southern. View "Robinson v. Southern Counties Oil Co." on Justia Law

Daisy Arias suffered sustained, egregious sexual harassment for most of the time she was employed by defendant-petitioner, Blue Fountain Pools & Spas, Inc. The primary culprit was defendant-petitioner, Sean Lagrave, a salesman who worked in the same office as Arias. Arias says Lagrave did everything from repeatedly asking her for dates to grabbing her and describing "his own sexual prowess." Arias complained about Lagrave’s conduct repeatedly over the course of her employment, but things came to a head on April 21, 2017: Lagrave yelled at Arias in front of coworkers, used gender slurs, and then physically assaulted her, bumping her chest with his own. Arias called the police and later left work. Arias told the owner, defendant-petitioner, Farhad Farhadian, she wasn’t comfortable returning to work with Lagrave. Farhadian did nothing initially, refused to remove Lagrave, then terminated Arias’s health insurance, and finally told Arias to pick up her final paycheck. Though Farhadian claimed Arias had quit, she says she was fired. Arias filed a complaint with the Department of Fair Employment and Housing and received a right to sue letter on August 14, 2017. She then filed this lawsuit alleging, relevant to this appeal, hostile work environment sex discrimination and failure to prevent sexual harassment. Petitioners moved for summary judgment, seeking, among other things, to have the hostile work environment claim dismissed as time-barred and the failure to prevent harassment claim dismissed as having an insufficient basis after limiting the allegations to the conduct that wasn’t time-barred. The trial court concluded Arias had created a genuine issue of material fact as to all her causes of action and denied the motion. Petitioners brought a petition for writ of mandate, renewing their statute of limitations argument, claiming Arias could not establish a continuing violation because she admitted she had concluded further complaints were futile. The Court of Appeal concluded Arias has shown she could establish a continuing violation with respect to all the complained of conduct that occurred during Farhadian’s ownership of the company. Further, the Court determined there was a factual dispute over whether and when Arias’s employer made clear no action would be taken and whether a reasonable employee would have concluded complaining more was futile: "that question must be resolved by a jury." The Court denied petitioners' request for mandamus relief and remanded the matter for further proceedings. View "Blue Fountain Pools and Spas Inc. v. Superior Court" on Justia Law

Petitioners California Disability Services Association; Horrigan Cole Enterprises, Inc., doing business as Cole Vocational Services; Unlimited Quest, Inc.; Loyd’s Liberty Homes, Inc.; and First Step Independent Living Program, Inc. petitioned for mandamus relief and damages, and sought a declaration against the California Department of Developmental Services (Department) and its director, Nancy Bargmann (collectively respondents). Petitioners challenged the Department’s denial of their requests for a rate adjustment due to the increase of the minimum wage, which, in turn, impacted the salaries of their exempt program directors, who had to be paid twice the minimum wage. The trial court denied petitioners’ petition and complaint for declaratory relief finding providers’ classification of the program directors as exempt employees was not mandated by law, thus “there is no ministerial duty imposed on the Department to grant a wage increase request in order to accommodate continued entitlement to the exemption.” Finding no reversible error, the Court of Appeal affirmed. View "California Disability Services Assn. v. Bargmann" on Justia Law

A jury returned verdicts in favor of plaintiff Timothy King against defendant U.S. Bank National Association (U.S. Bank) for defamation, wrongful termination in violation of public policy, and breach of the implied covenant of good faith and fair dealing, awarding King almost $24.3 million in compensatory and punitive damages. King started in the position of senior vice president regional manager, market lead, and market president for U.S. Bank’s Sacramento area in January 2007. In 2012, two of King's subordinates contacted the Bank's human resources department, raising claims of gender discrimination and harassment. There was substantial evidence from which the jury found the subordinates were biased and hostile toward King, and thus there were "obvious reasons to doubt the veracity of the informant[s] or the accuracy of his [and her] reports." U.S. Bank moved for judgment notwithstanding the verdict on the ground that there was no substantial evidence to support the jury’s verdicts and the award of punitive damages. The trial court denied the motion. U.S. Bank also moved for new trial on the grounds that there was insufficient evidence to support the verdicts, the damages were excessive, and there was an irregularity in the proceedings that prevented a fair trial. The trial court conditionally granted the motion for new trial on the excessive damages ground conditioned upon King agreeing to a remittitur, but denied the motion on the other grounds asserted. King accepted the remittitur and the trial court entered judgment on the remitted award of over $5.4 million. U.S. Bank appeals, challenging the jury’s verdicts on each of the causes of action and the remitted award of punitive damages. King cross-appealed, challenging the trial court’s new trial orders on excessive damages. The Court of Appeal reversed the trial court’s new trial orders, but agreed with the trial court, following its own independent review, that a one-to-one ratio between compensatory and punitive damages was the constitutional limit under the facts of this case. The Court remanded with directions to modify the judgment accordingly. View "King v. U.S. Bank National Assn." on Justia Law

After the Department discharged plaintiff based on her failure to report another deputy's use of force against an inmate and her failure to seek medical assistance for the inmate, the Commission affirmed the discharge. However, the trial court granted plaintiff's petition for writ of mandate and directed the Commission to set aside the discharge, award her back pay, and reconsider a lesser penalty.The Court of Appeal reversed and held that the Department did not abuse its discretion in discharging plaintiff where plaintiff's conduct furthered the code of silence at the Men's Central Jail, requiring the Department to take action. In this case, plaintiff's conduct in following the code of silence undermined the Department's trust and confidence in plaintiff as a deputy sheriff and negatively impacted the operation of the jail. Furthermore, at the Commission hearing, plaintiff minimized her responsibility to report the use of force. Therefore, given the Department's reasoned explanation that the discharge was necessary, the court concluded that this is not the exceptional case where reasonable minds cannot differ on the appropriate penalty. The court remanded for the trial court to enter a new judgment denying the petition for writ of mandate. View "Pasos v. Los Angeles County Civil Service Commission" on Justia Law

Chris Garner sued Inter-State Oil Company alleging employment claims and seeking certification of a class action. Based on an arbitration agreement between Garner and Inter-State Oil, the trial court granted Inter-State Oil’s petition to compel arbitration of individual claims only, effectively denying Garner the ability to pursue class action claims. The trial court relied on language in the arbitration agreement stating that Garner waived his right to participate in class action lawsuits. On appeal of the order granting the motion to compel arbitration, Garner contended: (1) the plain language of the arbitration agreement gave him the right to pursue his class claims in arbitration; and (2) Inter-State Oil waived reliance on the arbitration agreement. The Court of Appeal concluded: (1) the arbitration agreement required arbitration of Garner’s class claims; and (2) Inter-State Oil did not waive reliance on the arbitration agreement. The Court modified the trial court’s order to require arbitration of both individual and class claims, and affirmed the order as modified. View "Garner v. Inter-State Oil Co." on Justia Law