An employee with access to customer lists and other key business information leaves the company. You want to enforce your confidentiality agreement, but with the recent restrictions on non-competition/non-solicitation clauses, there’s not much you can do to stop them from using it – right? WRONG! California employers should be forward looking and act now to... Continue Reading…More

The PAGA reform (click here for a full analysis) caps penalties at 15% or 30% for employers that take “all reasonable steps” to comply with the law. This cap is especially meaningful when plaintiffs demand seven figures for alleged PAGA violations. This means that every California employer should immediately conduct a [privileged] wage-and-hour audit to... Continue Reading…More

The comprehensive reform of California’s Private Attorneys General Act is now the law. The PAGA reform (AB 2288 and SB 92) was a result of an agreement approved by Governor Newsom that removed the vote on the repeal of PAGA from the November ballot in exchange for the reform. PAGA is a vital issue to... Continue Reading…More

In a significant victory for employers, the California Supreme Court recently held that if an employer reasonably and in good faith believed it was providing complete and accurate wage statements in compliance with wage statement requirements (Labor Code § 226), then it has not knowingly and intentionally failed to comply with the wage statement law.... Continue Reading…More

PAGA lawsuits keep getting easier to bring—and one court just took it a step further. Employees no longer need to bring an individual PAGA claim to have standing to sue on a representative basis. Let’s first get a lay of the land: In Balderas v. Fresh Start Harvesting, Inc., 101 Cal. App. 5th 533 (2024),... Continue Reading…More

In a win for California employers, the California Court of Appeal held that stock options are not wages. A stock option is a contractual right to buy company stock at a certain price regardless of whether the stock price increases. If the value of the stock increases, the option is more attractive since the person... Continue Reading…More

After four long years of litigation, AB 51, intended to prohibit mandatory arbitration agreements, has been permanently enjoined. California companies may rejoice in a rare win allowing enforceable arbitration agreements to be a condition of employment, so long as the Federal Arbitration Act (“FAA”) governs the agreement. Most arbitration agreements contain this provision, but employers... Continue Reading…More

In a blow for employers, the California Supreme Court held that trial courts may not strike PAGA claims on manageability grounds. The Backdrop on PAGA Manageability PAGA trials are a collection of mini trials, as opposed to class actions that are one trial for common claims. Class actions must be “certified” as consisting of similar... Continue Reading…More

Though you may still be on a sugar high from Halloween, the new year is fast approaching, and with it, the onset of several new California employment laws. Employers should prepare now by updating their handbooks for 2024. While there are a myriad of employment laws to be aware of, we outline the most pertinent... Continue Reading…More

You’ve taken the right steps. You prepared and rolled out an enforceable arbitration agreement to your employees. Not surprisingly in California, you were sued. The Plaintiff, by force or voluntarily, agreed to arbitrate. You selected an arbitrator. The arbitrator sets a due date for payment. The benefits of arbitration are at your fingertips. All you... Continue Reading…More