While perhaps overlooked in favor of other high-profile rulings (we’re looking at you, Viking River Cruises), the California Supreme Court’s decision in Naranjo v. Spectrum Security Services, Inc., No. S258966 (Cal. May. 23, 2022) may turn out to be one of the most significant cases of the year for California employers. As we previously reported, Naranjo held that
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FAST Act Becomes Law in California, but Voter Referendum Filed in Response
On Sept. 5, 2022, California Governor Gavin Newsom signed into law AB 257, the controversial Fast Food Accountability and Standards Recovery Act, also known as the “FAST Act” (the Act). Its passing was swiftly met with a voter referendum filed Sept. 7, 2022, to potentially block the new law. If the proponents of the referendum collect sufficient signatures to qualify…
Superior Courts Officially Have the Discretion to Stay Later-Filed PAGA Actions
In Shaw v. Superior Court, 78 Cal. App. 5th 245 (2022), the California Court of Appeal held that trial courts have discretion to apply the doctrine of exclusive concurrent jurisdiction to stay a later-filed PAGA action when there are two or more pending Private Attorney General Act (PAGA) actions arising from the same facts and theories.
Judge Rules That Gender Quotas for Corporate Board Members Violate the California Constitution
As we reported in our blog discussing an LASC judge striking down a law that required California companies to have racially diverse boards (AB 979): Judge Rules That Race and LGBT Quotas for Corporate Board Members Violate the California Constitution, another LASC judge was presiding over a trial in which the plaintiff was challenging a different law that required…
Wage Transparency Laws Are Here to Stay
Some employers wish to post job openings without providing a salary range. They also would like to ask applicants about their salary history. Although this may benefit the employer in the negotiation process, asking about an applicant’s salary history and not providing salary information may be unlawful. Legislators have been concerned that employers’ lack of transparency in job listings…
In Viking River Cruises, US Supreme Court Sides With Employers: Individual PAGA Claims Are Arbitrable – For Now
In a victory for California employers, the U.S. Supreme Court held in Viking River Cruises, Inc. v. Moriana that the Federal Arbitration Act (FAA) requires enforcement of arbitration agreements that waive an employee’s right to bring a Private Attorneys General Act (PAGA) claim on a representative basis – requiring such claims be brought on an individual basis in arbitration.
Supreme Court Holds Waiving Arbitration Does Not Require Proof of Prejudice
In Morgan v. Sundance, Inc., the U.S. Supreme Court resolved a circuit split regarding whether a party has waived its right to arbitrate. Under the test reviewed by the Court, a party waived its right to arbitration if it knew of the right to arbitrate, acted inconsistently with that right, and prejudiced the other party by its inconsistent actions.…
California Court of Appeals are Split on Whether Employers Can Dismiss a PAGA Claim Based on Manageability
In Estrada v. Royalty Carpet Mills, Inc., 76 Cal. App. 5th 685 (2022), the California Court of Appeal, in relevant part, reversed a trial court’s order decertifying a subclass and dismissing related Private Attorneys General Act (PAGA) claims as unmanageable. In doing so, the court held “a court cannot strike a PAGA claim based on manageability.”
Plaintiffs, employees at…
Judge Rules That Race and LGBT Quotas for Corporate Board Members Violate the California Constitution
A Los Angeles Superior Court judge recently ruled that a California law (Assembly Bill 979) requiring California corporations to implement race and LGBT quotas for their board of directors is unconstitutional.
The History of AB 979
On Sept. 30, 2020, California Gov. Gavin Newsom signed into law AB 979, which required publicly held corporations with a principal executive office in…
California’s ‘FAST Recovery Act’: The Anticipated Impact on the Restaurant Industry, Franchise Industry, Jobs and Food Prices
On Jan. 31, 2022, the California State Assembly passed AB 257, the Fast Food Accountability and Standards Recovery Act, also known as the “FAST Recovery Act.” If passed by the Legislature and signed by California Gov. Gavin Newsom, the FAST Recovery Act would dramatically change how the majority of California restaurants are regulated in multiple critical ways.