by Stephen Moses On Oct. 29, the California Court of Appeal’s Second Appellate District, Division Eight, issued an opinion in MGA Entertainment Inc. v. Mattel Inc., upholding the trial court’s dismissal of MGA’s trade secret misappropriation claims against Mattel over the irreverent Bratz dolls made by MGA.[1] MGA appealed the judgment of Superior Court Judge Carolyn B. Kuhl, who granted
Mandatory Arbitration Agreements Declared Illegal for Claims Arising Under the California Fair Employment and Housing Act and the Labor Code
by Michelle R. Ferber and Julie Ann Giammona Beginning January 1, 2020, California employers will be prohibited from requiring an employee or a job applicant to execute a mandatory arbitration agreement that waives a worker’s right to file a civil action in court for alleged violations of the California Fair Employment and Housing Act (“FEHA”), and/or the Labor Code. FEHA
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
CALIFORNIA LEGISLATURE PASSES ASSEMBLY BILL 5 CODIFYING THE DYNAMEX DECISION
by Michelle R. Ferber and Julie Ann Giammona Yesterday, the California Legislature passed AB 5, the controversial bill that codifies the notorious 2018 California Supreme Court Dynamex decision. Governor Newsom has already expressed his support for the Bill and is expected to sign AB 5 before the deadline of October 13. Dynamex overturned 30 years of established law by holding
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
NINTH CIRCUIT HOLDS THAT DYNAMEX APPLIES RETROACTIVELY
by Michelle R. Ferber and Connor M. Day On May 2, 2019, the Ninth Circuit Court of Appeals held that the California Supreme Court’s landmark decision in Dynamex should apply retroactively. In Vazquez v. Jan-Pro Franchising Int’l (9th Cir. 17-16096 5/2/210), the Ninth Circuit stated that California law calls for the retroactive application of Dynamex and that doing so is
CALIFORNIA APPELLATE COURT ENFORCES MANDATORY ARBITRATION AGREEMENT
by Michelle R. Ferber and Julie Ann Giammona In a victory for employers, a California Appellate Court determined that mandatory arbitration agreements are enforceable where an employee has been given notification that commencement or continued employment constitutes acceptance of the arbitration agreement. In Diaz v. Sohnen Enterprises, the employer announced at a company-wide meeting that it was instituting a mandatory
DEPARTMENT OF LABOR ANNOUNCES NEW SALARY THRESHOLD FOR WHITE COLLAR EXEMPTIONS
by Michelle R. Ferber and Julie Ann Giammona Last week, the U.S. Department of Labor (DOL) issued its highly anticipated salary overtime exemption rule, replacing the controversial Obama administration rule. Effective January 1, 2020, the new minimum salary threshold for workers to qualify as exempt under the Fair Labor Standards (FLSA) “white collar” exemption is $35,308 per year. The prior
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
FEDERAL DEPARTMENT OF TRANSPORTATION DETERMINES CALIFORNIA TRUCKERS ARE EXEMPT FROM MEAL PERIOD AND REST BREAK REQUIREMENTS
by Michelle R. Ferber and Julie Ann Giammona On December 21, 2018, in a victory for the American Trucking Association (ATA), the Federal Motor Carrier Safety Administration (FMCSA), an Agency regulated by the Department of Transportation, granted the ATA petition to exempt commercial motor vehicle drivers covered by the FMCSA’s hours of service regulations from California meal period and rest