Justia Labor & Employment Law Opinion Summaries
Articles Posted in California Courts of Appeal
Diaz v. Sohnen Enterprises
The Court of Appeal reversed the trial court's denial of Sohnen's motion to compel arbitration of workplace discrimination claims brought by plaintiff, an employee of Sohnen. The court held that the record demonstrated consent to arbitration where plaintiff's continued employment was a manifestation of agreement to the arbitration provisions. The court also held that plaintiff failed to demonstrate that the arbitration agreement was unenforceable where the record contained no evidence of surprise, nor of sharp practices demonstrating substantive unconscionability. Accordingly, the court remanded for further proceedings. View "Diaz v. Sohnen Enterprises" on Justia Law
Martinez v. Public Employees’ Retirement System
The Public Employees Retirement Law, Government Code section 21156, defines disability as being “incapacitated physically or mentally.” A governmental employee loses the right to claim disability benefits if terminated for cause. The Third Appellate District identified exceptions: under “Haywood,” a terminated-for-cause employee can qualify for disability retirement when the conduct which prompted the termination was the result of the disability; under “Smith,” a terminated employee may qualify for disability retirement if he had a “matured right” to a disability retirement before that conduct; Smith further recognized that “a court, applying principles of equity,” could deem an employee’s right to a disability retirement to be matured to survive a dismissal for cause. The Board of Administration of the California Public Employees Retirement System (CalPERS) adopted a precedential decision (Vandergoot) that an employee settling a pending termination for cause and agreeing not to seek reemployment is “tantamount to a dismissal,” precluding a disability retirement. Martinez, a former state employee, settled the termination for cause action against her and agreed to resign and not re-apply for employment. CalPERS denied her application for disability retirement. The trial court and court of appeal concluded that Haywood and Smith were binding as stare decisis and that “Vandergoot is a reasonable extension.” The courts rejected an argument that a 2008 enactment tacitly “superseded” Haywood and Smith. View "Martinez v. Public Employees' Retirement System" on Justia Law
Ryze Claim Solutions LLC v. Superior Court
Ryze’s headquarters and principal place of business was in Noblesville, Indiana. In 2014, Ryze hired Nedd, a California resident, to work for Ryze in El Cerrito. In 2017, Ryze terminated Nedd’s employment. Nedd filed a wrongful termination suit in Contra Costa County, under the Fair Employment and Housing Act (FEHA). The Employment Agreement between Ryze and Nedd contained a forum selection clause, stating that “any claim of any type brought by Employee against [Ryze] … must be maintained only in a court sitting in" Indiana. The court declined to stay or dismiss the case, stating that forum selection clauses will not be enforced when contrary to California public policy and that enforcing the forum selection clause would be contrary to Labor Code section 925 and Government Code section 12965 (governing venue in FEHA cases). The court of appeal directed the trial court to vacate its order. Labor Code section 925 establishes a policy prohibiting employers from requiring California employees from agreeing to litigate in a different forum as a prerequisite to employment, but by its plain language states that it applies to agreements “entered into, modified, or extended on or after January 1, 2017.” The FEHA venue statute has no bearing on the forum selection clause. View "Ryze Claim Solutions LLC v. Superior Court" on Justia Law
Zakaryan v. The Men’s Warehouse, Inc.
If an employee brings a solitary Labor Code Private Attorneys General Act of 2004 (PAGA) claim, a trial court may not split that claim, sending the employee to arbitration (when he has agreed to it) to recover his underpaid wages but retaining jurisdiction to award the additional, statutorily prescribed amounts.The Court of Appeal held that splitting a PAGA claim in this manner was both legally impermissible and inconsistent with labor and arbitration law. The court explained that where, as here, the employee-plaintiff elected to file a solitary PAGA claim, splitting that claim into two effectively rewrites his complaint into one asserting an individual claim for underpaid wages (which is shunted to arbitration) and a PAGA claim (which is not). Accordingly, the court held that the trial court properly denied the motion to compel arbitration in this case and affirmed the judgment. View "Zakaryan v. The Men's Warehouse, Inc." on Justia Law
Johnson v. Raytheon Co.
After plaintiff was seriously injured when he fell from a ladder at work, he filed suit against several defendants, alleging they were all responsible for the unsafe conditions which led to his fall. Plaintiff was employed by an independent contractor which provided maintenance engineering staff for Raytheon. The prime contractor for Raytheon's water cooling tower renovation was Systems XT, and plaintiff was employed by ABM, an independent contractor which provided control room staff to Raytheon.The Court of Appeal affirmed the district court's grant of summary judgment to Raytheon and Systems XT. The court held that there were no triable issues of material fact under the Hooker exception to Privette v. Superior Court (1993) 5 Cal.4th 689, where Raytheon did not represent that the partial extension ladder was a safe replacement for the platform ladder, nor did Raytheon promise to provide ABM's employees with light fixtures at the water cooling tower. In the alternative, there were no triable issues of material fact under the Kinsman exception to Privette where there was undisputed evidence that the hazard could reasonably have been discovered by inspecting the ladder, and once discovered, avoided. The court also held that Systems XT owed no duty to provide plaintiff with lighting. In this case, Systems XT did not leave plaintiff in the dark with no way to perform his task, because he had a flashlight that he simply chose not to use when he inspected the water level. View "Johnson v. Raytheon Co." on Justia Law
Nieto v. Fresno Beverage Co.
After plaintiff was terminated from VWB, he filed a class action against the company alleging various wage and hour violations under California labor law. The Court of Appeal affirmed the trial court's denial of VWB's petition to compel arbitration and held that the trial court correctly found that plaintiff's employment came within the Federal Arbitration Act's exemption granted to transportation workers engaged in interstate commerce. The trial court correctly found that plaintiff, employed as a delivery driver for VWB, engaged in interstate commerce through his participation in the continuation of the movement of interstate goods to their destinations. Therefore, plaintiff was exempt from the FAA. The court need not address plaintiff's alternative argument that the arbitration agreement was unenforceable. View "Nieto v. Fresno Beverage Co." on Justia Law
Retired Oakland Police Officers Association v. Oakland Police and Fire Retirement System
The Retired Oakland Police Officers Association obtained a writ of mandate against the Oakland Police and Fire Retirement System directing that master police officer-terrorism pay (MPO pay) be included in the calculation of pension benefits. Under the retirement system, a retiree’s pension is a fixed percentage of the compensation currently “attached to the average rank” held by the retiree at the time of retirement. The court of appeal reversed. The trial court erred in concluding that MPO pay is “compensation attached to . . . rank” as required by the Oakland City Charter for inclusion in pension benefits. In 2009-2015, MPO pay was paid to all officers who had completed 20 years of service in the Department; maintained fully effective overall performance appraisals during the assignment; attended and completed an approved anti-terrorism/law enforcement response course; and been assigned to the patrol division. The requirement that an officer be assigned to the patrol division to receive MPO pay compels the conclusion that MPO pay is not attached to the officer’s rank. The agreement that added MPO pay did not restructure the relevant ranks or create an additional step within an existing rank. View "Retired Oakland Police Officers Association v. Oakland Police and Fire Retirement System" on Justia Law
Myers v. Raley’s
Plaintiffs Roger Myers, Dave Billings, Greg Neyhart, and Jim Mestas were nonexempt maintenance technicians for Raley’s grocery stores. Plaintiffs alleged they were required to drive company vehicles carrying their own tools as well as specialized tools, and they were not allowed to run personal errands without special permission or carry passengers who were not Raley’s employees except in an emergency. Despite Raley’s control over their driving time, they were not compensated for the time they spent driving to their first store or driving home from the last store they service each day. They claimed Raley’s uniform practice violated California law. These uniform policies and practices, according to the technicians, presented common issues of fact and law and their legality were particularly well suited to a class action. In denying class certification, the trial court made the conclusory finding plaintiffs failed to establish that a well-defined community of interest exists and that the common issues of fact and law predominate. The Court of Appeal determined that because the trial court’s cursory finding rendered its review "impossible," and because cases decided after the trial court’s ruling exposed the dangers of employing the wrong legal criteria, asking the wrong questions, or inflating the significance of the opposing parties’ evidence, the Court of Appeal remanded this case back to the trial court for reconsideration in light of Ayala v. Antelope Valley Newspapers, Inc., 59 Cal.4th 522 (2014) and Jones v. Farmers Ins. Exchange, 221 Cal.App.4th 986 (2013), and for a statement of reasons to ensure the court did not use improper criteria or rely on erroneous legal assumptions. View "Myers v. Raley's" on Justia Law
Su v. Stephen S. Wise Temple
Commissioner, on behalf of preschool teachers employed by the Temple, filed suit alleging that the Temple violated various provisions of the Labor Code by failing to provide its preschool teachers with rest breaks, uninterrupted meal breaks, and overtime pay. The trial court granted summary judgment for the Temple and held that the Commissioner's claims were barred by the ministerial exception.The Court of Appeal reversed and held that the teachers were not "ministers" for purposes of the ministerial exception. In this case, although the Temple's preschool curriculum has both secular and religious content, its teachers were not required to have any formal Jewish education, to be knowledgeable about Jewish belief and practice, or to adhere to the Temple's theology. Furthermore, the Temple did not refer to its teachers as "ministers" or the equivalent, nor did the teachers refer to themselves as such. Therefore, the court remanded for further proceedings. View "Su v. Stephen S. Wise Temple" on Justia Law
Martinez v. O’Hara
Following the termination of his employment, plaintiff Fernando Martinez sued Stephen Stratton O’Hara (O’Hara), Career Solution and Candidate Acquisitions (CSCA), O’Hara Family Trust, OCRE, Inc., Professional Realty Council, Inc., and Pacific Valley Realty, Inc. (collectively, defendants) alleging five employment-related claims. Plaintiff’s wage claim was resolved before trial and his fraud claim was dismissed when the trial court granted defendants’ motion for nonsuit. A jury returned a verdict awarding a total of $8,080 in damages on the claim for sexual harassment in violation of the California Fair Employment and Housing Act (FEHA). Following a bench trial of plaintiff’s remaining claims seeking an injunction for unfair advertising and unfair business practices, the trial court found in favor of defendants. Plaintiff moved for attorney fees, which was denied. Plaintiff appealed the fee order, but the Court of Appeal affirmed. The Court reported plaintiff’s attorney Benjamin Pavone to the California State Bar for manifesting gender bias: the notice of appeal signed by Mr. Pavone on behalf of plaintiff referred to the ruling of the female judicial officer as “succubustic.” The Court published this portion of the opinion to make the point that gender bias by an attorney appearing before the Court would not be tolerated. Furthermore, the attorney was reported to the Bar for a statement in the notice of appeal suggesting the trial court attempted to thwart service of the signed judgment on plaintiff in an effort to evade appellate review and statements in the appellate briefs he signed on behalf of plaintiff accusing the judicial officer who ruled on the motion for attorney fees of intentionally refusing to follow the law. None of these serious charges was supported by any evidence. View "Martinez v. O'Hara" on Justia Law