Justia Labor & Employment Law Opinion Summaries

The Court of Appeal affirmed the trial court's denial of plaintiff's request for entry of a default judgment against Noble and dismissal of the case. The trial court denied the request because plaintiff failed to comply with the trial court's order to distribute 25 percent of the penalties to be allocated under the Labor Code Private Attorney General Act of 2004 (PAGA) to the 23 aggrieved employees in a pro rata amount.The court held that PAGA civil penalties must be distributed to all aggrieved employees. In this case, allocation of 25 percent to all aggrieved employees was consistent with the statutory scheme under which the judgment binds all aggrieved employees, including nonparties. The court also held that the trial court did not err in dismissing the case where the order of dismissal was the result of plaintiff's decision not to submit a default judgment in compliance with the trial court's order, not Noble's failure to defend the action. View "Moorer v. Noble LA Events, Inc." on Justia Law

Plaintiffs filed a class action complaint alleging causes of action for violations of the Labor Code and the Industrial Welfare Commission's (IWC) wage orders based on the City's alleged failure to pay workers employed as pages and recreation leader specialists wages at or above the statewide minimum wage. On appeal, plaintiffs challenged the trial court's dismissal of their action after it sustained without leave to amend the City's demurrer.The Court of Appeal held that legislation setting a statewide minimum wage, generally applicable to both private and public employees, addresses the state's interest in protecting the health and welfare of workers by ensuring they can afford the necessities of life for themselves and their families. Therefore, the Legislature may constitutionally exercise authority over minimum wages, despite the constitutional reservation of authority in charter cities to legislate as to their municipal affairs. In this case, the court held that the trial court erred in sustaining the City's demurrer where the state minimum wage law was designed to address a statewide concern for the health and welfare of workers and was reasonably related to its purpose. Furthermore, the application of the minimum wage requirement did not unconstitutionally impair the memorandum of understanding between plaintiffs and the City. View "Marquez v. City of Long Beach" on Justia Law

Plaintiffs Mark Correia and Richard Stow sued their former employer, NB Baker Electric, Inc. (Baker), alleging wage and hour violations and seeking civil penalties under the Private Attorney General Act of 2004 (PAGA). Baker responded by petitioning for arbitration under the parties' arbitration agreement. The agreement provided that arbitration shall be the exclusive forum for any dispute and prohibited employees from bringing a "representative action." The trial court granted the arbitration petition on all causes of action except for the PAGA claim. On the PAGA claim, the court followed the California Supreme Court decision in Iskanian v. CLS Transportation Los Angeles, LLC, 59 Cal.4th 348 (2014), and the California Court of Appeal decision in Tanguilig v. Bloomingdale's, Inc., 5 Cal.App.5th 665 (2016). The trial court stayed the PAGA claim pending the conclusion of the arbitration. Baker contended the court erred because: (1) plaintiffs' response to its arbitration petition was untimely; (2) Iskanian was no longer binding as it was inconsistent with a recent United States Supreme Court decision, Epic Systems Corp. v. Lewis, 138 S.Ct. 1612 (2018); and (3) the parties' arbitration agreement should have been interpreted to mean that if the representative-action waiver was unenforceable, the PAGA claim for statutory penalties remained subject to arbitration. The Court of Appeal determined the trial court acted within its discretion in considering plaintiffs' response to the arbitration petition despite that plaintiffs filed the response after the statutory deadline. Furthermore, Iskanian was still good law: "Although the Epic court reaffirmed the broad preemptive scope of the Federal Arbitration Act (FAA), Epic did not address the specific issues before the Iskanian court involving a claim for civil penalties brought on behalf of the government and the enforceability of an agreement barring a PAGA representative action in any forum." Therefore, the Court concluded the trial court properly ruled the waiver of representative claims in any forum is unenforceable. The Court rejected Baker's contention the court erred in failing to order plaintiffs' PAGA claim to arbitration. "We are aware the federal courts have reached a different conclusion regarding the arbitrability of a PAGA representative claim, but find these decisions unpersuasive because the courts did not fully consider the implications of the qui tam nature of a PAGA claim on the enforceability of an employer-employee arbitration agreement. Moreover, although we provided Baker the specific opportunity to do so, it failed to identify a sound basis for this court to apply the federal decisions on this issue." View "Correia v. NB Baker Electric, Inc." on Justia Law

In this declaratory relief action, the trial court ruled the Orange County Department of Education (Employer) had to pay approximately $3.3 million in additional contributions to fund pension benefits promised to its employees. Employer argued the Court of Appeal should independently review the legal issues raised in its complaint because the judgment arose from an order granting a motion for judgment on the pleadings. Applying this standard, the Court nevertheless reached the same conclusion as the trial court: the requested payment from Employer, which related to an unfunded liability of its employees’ pension benefits, was permissible and did not violate the California constitution. View "Mijares v. Orange Co. Employees Retirement System" on Justia Law

Plaintiff Jorge Fierro filed suit on behalf of himself and others like him against defendant Landry's Restaurants, Inc., seeking remedies for what Fierro alleged to be Landry's Restaurants's violations of specified California labor laws and wage orders. Landry's Restaurants demurred to the complaint on the basis that each of the causes of action was barred by the applicable statute of limitations. As to Fierro's individual claims, the trial court overruled the demurrer, concluding that the statute of limitations defense did not appear affirmatively on the face of the complaint. As to the class claims, the trial court sustained the demurrer without leave to amend on the basis that a prior class action with identical class claims against Landry's Restaurants had been dismissed for failure to bring the case to trial in five years as required by Code of Civil Procedure sections 583.310 and 583.360. Under the "death knell" doctrine, Fierro appealed that portion of the order sustaining without leave to amend the demurrer to the class claims. Previously, the Court of Appeal issued an opinion reversing the order on the basis that the applicable statutes of limitations on the class claims had been tolled. However, the California Supreme Court granted review and transferred the matter to the Court of Appeal with directions to vacate the opinion and to reconsider the cause in light of the United States Supreme Court's opinion in China Agritech, Inc. v. Resh, 138 S.Ct. 1800 (2018) an opinion issued following the filing of the appellate court's opinion but before issuance of the remittitur. After vacating its decision, the Court of Appeal requested and received supplemental briefing from the parties as to the potential application of China Agritech to the issues presented in this appeal. In determining whether the statutes of limitations barred Fierro's class claims, the Court of Appeal concluded there was no basis on which to apply equitable (or any other form of) tolling. Although that determination will result in at least some of the class's claims being time-barred, on the record, the Court could not say that all of the class's claims were untimely. Thus, the Court reversed the order sustaining Fierro's demurrer without leave to amend and remanded for further proceedings in which the trial court could decide, on a more developed record, issues related to class certification and/or timeliness of class claims. View "Fierro v. Landry's Restaurant, Inc." on Justia Law

Former employees of Dark Horse filed suit alleging wage and hour claims on behalf of themselves and other similarly situated employees. The Court of Appeal reversed the trial court's denial of plaintiffs' motion for class certification. The court held that, in denying the motion for class certification, the trial court used improper criteria or erroneous legal assumptions, which affected its analysis of whether plaintiffs' claims and one of defendant’s defenses presented predominantly common issues, suitable for determination on a class basis. Accordingly, the court remanded to the trial court to reconsider and redetermine the motion for class certification. View "Jimenez-Sanchez v. Dark Horse Express, Inc." on Justia Law

Plaintiff worked as an anesthesiologist at the hospital, beginning in 1991. In 2011, the California Department of Public Health conducted an unannounced “medication error reduction plan” survey at the hospital, found that Plaintiff was responsible for numerous deficiencies regarding the use of the drug droperidol and that the deficiencies “placed patients at risk for undue adverse medical consequences,” and declared that the hospital was in “immediate jeopardy.” The medical group that is responsible for providing the hospital with physicians agreed to remove Plaintiff from the anesthesia schedule pending further investigation. Plaintiff went through required remediation, returned to work, and continued to improperly use the drug. The practice group terminated his “staff privileges, membership, or employment” with the hospital “based on a medical disciplinary cause or reason” without giving prior notice and a hearing under Business and Professions Code section 809. The trial court awarded Plaintiff damages. The court of appeal affirmed. A hospital may not avoid its obligation to provide notice and a hearing before terminating a doctor’s ability to practice in the hospital for jeopardizing the quality of patient care, by directing the medical group employing the doctor to refuse to assign the doctor to the hospital View "Economy v. Sutter East Bay Hospitals" on Justia Law

Plaintiff filed suit challenging the on-call scheduling practices of her former employer, Tilly's, as violating wage order No. 7-2001, which regulates the wages, hours, and working conditions in the mercantile industry. The Court of Appeal held that the on-call scheduling alleged in this case triggered Wage Order 7's reporting time pay requirements. The court found that on-call shifts burdened employees, who cannot take other jobs, go to school, or make social plans during on-call shifts—but who nonetheless received no compensation from Tilly's unless they ultimately are called in to work. The court noted that this was precisely the kind of abuse that reporting time pay was designed to discourage. Accordingly, the court reversed the trial court's judgment of dismissal and remanded for further proceedings. View "Ward v. Tilly's, Inc." on Justia Law

After EDI assigned plaintiffs to pack produce for San Miguel Produce, plaintiffs filed suit against San Miguel for labor law violations. The Court of Appeal reversed the trial court's denial of EDI and San Miguel's joint motion to compel arbitration, holding that the arbitration was mandated. The court held that EDI and San Miguel were co-employers with an identity of interests and mutual responsibility for complying with state law governing employers in the produce packing industry, and it was inconsequential that plaintiffs chose not to name EDI as a defendant. In this case, plaintiffs had agreed to arbitrate all disputes arising from their employment and, at all relevant times, EDI was plaintiffs' employer. The court remanded with directions to stay the court proceedings and to order the parties to arbitrate their dispute. View "Vasquez v. San Miguel Produce, Inc." on Justia Law

Plaintiff alleged that she was terminated in retaliation for having brought to the attention of Defendant’s management and the Board of Equalization defendant’s failure to pay use taxes (Labor Code section 1102.5). Proceeding as if the case turned on whether Plaintiff correctly accused Defendant of failing to pay use taxes, Plaintiff pursued and Defendant resisted efforts to obtain copies of Defendant’s tax returns. The court of appeal held that Defendant had not “waived the privilege against forced disclosure of tax returns” and that no exception to that privilege applied. In moving for summary judgment Defendant did not address Plaintiff’s allegation that she was terminated in retaliation for raising the tax-avoidance issue, nor did it seek to establish an affirmative defense to the claim. The motion was granted on the theory that Plaintiff could not prove her case without the tax returns. The court of appeal reversed. Defendant made no attempt to demonstrate that the reason Plaintiff was discharged was not the reason she alleges, nor has it argued that discharge for that reason would not violate section 1102.5(b) or fundamental public policy. Firing a “whistleblower” for complaining of the employer’s willful failure to pay taxes that are due would support a right to relief under both of Plaintiff’s causes of action. View "Siri v. Sutter Home Winery, Inc." on Justia Law