EMPLOYERS HAVE CAUSE TO REJOICE: UNPAID WAGES ARE NOT RECOVERABLE UNDER PAGA

by Michelle R. Ferber and Julie Ann Giammona In a sweeping victory for employers, the California Supreme Court announced on September 12, 2019, in ZB, N.A. v. Superior Court (Lawson), that employees cannot recover unpaid wages in actions brought pursuant to the Private Attorney General Act (PAGA).  PAGA allows employees to commence representative actions to recover civil penalties on behalf

NINTH CIRCUIT WITHDRAWS ITS PRIOR DECISION ON RETROACTIVE APPLICATION OF DYNAMEX CASE

by Michelle R. Ferber and Julie Ann Giammona On July 22, 2019, a three-judge panel for the Ninth Circuit reversed its May 2, 2019 Vazquez et al. v. Jan-Pro Franchising International decision concluding that the California Supreme Court’s Dynamex decision — which overturned 30 years of case law allowing employers to classify their workers as independent contractors utilizing a multi-factor

CALIFORNIA SUPREME COURT PROHIBITS EMPLOYEES FROM SUING PAYROLL COMPANIES FOR WAGE VIOLATIONS

by Michelle R. Ferber and Jennifer R. Lucas On February 7, 2019, the California Supreme Court decided the case of Goonewardene v. ADP, LLC, which considered the novel question of whether an employee could sue her employer’s payroll company for wage and hour and other statutory violations.  Ultimately, the Supreme Court’s answer was that the payroll company was not liable

CAUTION: NON-SOLICITATION AGREEMENTS ARE LIKELY UNENFORCEABLE

by Michelle R. Ferber and Julie Ann Giammona In AMN Healthcare Inc. v. Aya Healthcare Services, Inc., the Court of Appeal for the Fourth Appellate District held that non-solicitation agreements are void unless they fall within one of the three statutory exceptions found in Business & Professions Code Sections 16601 – 16602.5 relating to the sale of goodwill in a

NEW PROTECTIONS FOR VICTIMS OF SEXUAL HARASSMENT

by Michelle R. Ferber and Julie Ann Giammona California has passed a myriad of new laws that will become effective January 1, 2019 that expand employer liability for sexual harassment. Below is a brief summary of each law. SB 1300 Under current law, the California Fair Employment and Housing Act (FEHA), provides that an employer can be liable for sexual

Ninth Circuit Denies California Trucking Association’s Attempt to Use Federal Preemption to Avoid Enforcement of State Labor Law

by Michelle R. Ferber and Julie Ann Giammona Last month, the Ninth Circuit concluded that the California Labor Commissioner’s use of the common-law Borello standard to determine employment classification was not preempted by the Federal Aviation Administration Authorization Act (“FAAAA”). In California Trucking Association v. Su, the court determined that the Labor Commissioner could apply California common law to truck

DESPITE LEGALIZATION OF CANNABIS, EMPLOYERS CAN STILL FIRE EMPLOYEES FOR TESTING POSITIVE

by Michelle R. Ferber and Julie Ann Giammona Proposition 64, Adult Use of Marijuana Act (AUMA), effective January 1, 2018, makes recreational use of cannabis legal in California. Marijuana, for medicinal purposes, has been legal in California since 1996 under The Compassionate Care Act, provided the user has a medical marijuana card from a licensed healthcare provider. However, under federal law,