On June 15, the U.S. Supreme Court finally brought closure to the long-running, unsettled issue of whether California’s prohibition against arbitration agreement waivers of the right to bring representative actions under the California Labor Code Private Attorneys General Act (PAGA) is preempted by the Federal Arbitration Act (FAA). California’s appellate courts and the Ninth Circuit … Continue Reading
The Class Action Fairness Act of 2005 (“CAFA”) grants federal courts jurisdiction to preside over certain class action cases where, based on the claims alleged, the amount in controversy is more than $5 million, among other factors. While CAFA provides a useful tool for defendants to remove class actions to federal court, CAFA creates an … Continue Reading
California’s Supreme Court has cut off an area of significant potential exposure for California employers by ruling that employees cannot recover unpaid wages on behalf of themselves and other aggrieved employees through California’s Private Attorneys General Act (PAGA). Serving as a quasi-class action, California’s PAGA allows employees to recover civil penalties for California Labor Code … Continue Reading
Nearly four years ago, the California Supreme Court issued its decision in the case of Duran v. U.S. Bank National Ass’n, 59 Cal. 4th 1 (2014), in which it virtually catalogued the many problems inherent in the plaintiffs’ statistical case that purported to demonstrate that a class of 260 outside salespeople were misclassified as exempt. … Continue Reading
With waves of cases already having addressed common targets for wage and hour litigation – assistant managers, healthcare workers, loan officers, donning and doffing claims, and the like – cases alleging more arcane claimed violations are becoming more common. In many of these cases, plaintiffs’ counsel have sighted popular employee perks, like free meals or … Continue Reading
California’s employment laws have consistently caused headaches for employers because even minor technical violations of these laws can fuel class action litigation and prove costly. However, a recent decision by the California Supreme Court, Mendoza v. Nordstrom, Inc. (SC S224611), provides some clarity by tackling three burning questions regarding California’s day of rest statutes – … Continue Reading
Yogi Berra often has been quoted for the phrase “It ain’t over till it’s over,” and Lenny Kravitz even made a hit song of it in 1991. While no one will likely ever make a popular song out of Rule 23, the phrase applies just as well to class action litigation, as a recent case … Continue Reading
“Depending on the nature of the claimed exemption and the facts of a particular case, a misclassification claim has the potential to raise numerous individual questions that may be difficult, or even impossible, to litigate on a classwide basis.” “[T]rial courts deciding whether to certify a class must consider not just whether common questions exist, … Continue Reading
Back in October, we reviewed a number of California cases that, for the most part, denied certification in cases in which certification would have largely been a foregone conclusion only a few years ago. The first few days of 2014 have been quiet on the class action front so far, so let’s review a few … Continue Reading
Dorothy Gale famously remarked upon finding herself in Oz “Toto, I’ve got a feeling we’re not in Kansas anymore.” Class action wage and hour plaintiffs on the west coast are now awakening to the fact that while they may still be in California, California isn’t California any more. In May we noted the almost overnight … Continue Reading
Court Finds No Support For 33%+ Attorney Fee Award It is axiomatic that the class action vehicle exists for the benefit of the claimants. An inherent conflict of interest may arise between the class and plaintiffs’ counsel over the issue of attorney fees, and resolution of that conflict may ultimately cause a court to reject … Continue Reading
Another California case has compelled the arbitration of a wage and hour claim in the wake of the United States Supreme Court’s decision in AT&T Mobility LLC v. Concepcion, 131 S. Ct. 1740 (2011). While the outcome is of note, the case has several other interesting features as well, among them the question of why … Continue Reading
Sometimes, when a heavily hyped movie arrives in theaters, the tremendous business it generates can have a negative effect on all the other surrounding films. For example, The Avengers landed in American cinemas on May 4, 2012. Since that time, not only has it racked up astronomical box office figures of its own (in fact, … Continue Reading
A Decent Ruling, But Not All It Could Be Rest and meal period class actions have vexed California employers and outsiders trying to conduct business in California for several years. Even a minor violation is argued to cascade into an array of class-wide claims that have been used to extract tens or hundreds of millions … Continue Reading
Following down the road paved late last year by the Ninth Circuit in Am. Trucking Ass’ns, Inc. v. City of Los Angeles, (ATA II), 660 F.3rd 384 (2011), and the Southern District of California in Dilts v. Penske Logistics LLC (discussed here), Judge Jacqueline Nguyen in the Central District of California has dismissed a putative … Continue Reading
Court Finds That Insurance Agents Were Independent Contractors As A Matter Of Law As we have noted in prior blogs, litigation involving alleged independent contractor status is on the rise, and is increasingly the topic of class action claims. Plaintiffs in these cases tend to argue that they were misclassified as independent contractors and were … Continue Reading
An Irritable Pessimist’s View of a Welcome Decision After several years of waiting, the California Supreme Court handed down its long-anticipated decision in Harris v. Superior Court last week. Given the natural-born suspicion held by management-side lawyers toward anything that wanders its way out of the wilderness that is the California courts, it probably comes as … Continue Reading
An employer permits its employees to trade shifts voluntarily. A nice favor, right? Unfortunately, there are claimants ready to assert class action wage and hour claims when the employees’ own decisions create potential overtime issues. In Lessard v. Skywest Airlines, Inc., Case No. 2:11-cv-03769-JHN-VBK (C.D. Cal. Oct. 24, 2011), the plaintiffs were former ticket agents … Continue Reading
COURT: EXOTIC PERFORMER MUST DANCE THE DANCE TO LEAD A CLASS ACTION An exotic dancer’s effort to certify a class of dancers in a minimum wage suit against an adult night club in California hit a bump and ground to a temporary halt in early October after a federal court determined she could not serve … Continue Reading
California has been the focus of numerous class action wage and hour suits involving retail managers and assistant managers. One reason is that California law defines the executive exemption slightly, but significantly differently than, federal law. Under both the FLSA and California law, courts will consider whether the employee’s “primary duty” is management. While under … Continue Reading
Thomas Hobbes famously observed that life is short, nasty, and brutish. A recent case from the Ninth Circuit demonstrates that litigation is similar, except that it is not short. In Marlo v UPS.pdf (9th Cir., April 28, 2011), the plaintiff was a UPS employee who held various supervisory positions in connection with the movement of freight. … Continue Reading
The Second Appellate District in California recently affirmed a trial court’s refusal to certify a class of store managers in Mora, et al. v. Big Lots Stores, Inc.pdf., Case No. B221949 (April 18, 2011). Whether this case should be treated as a welcome sign for employers, however, remains an enigma wrapped inside a riddle (served … Continue Reading
If you think wage and hour class actions aren’t very sexy, you’re wrong. A class of exotic dancers in California and other states have received preliminary court approval of a $10 million settlement of their class action suit in which they claimed that their adult nightclub employers misclassified them as independent contractors. Trauth v. Spearmint … Continue Reading
We’ve commented in this blog in the past about the viability of classes that have been conditionally certified under the FLSA and that many are ultimately decertified. Another case underscores the importance of the distinction between conditionally certified classes under the FLSA and those that survive a motion to decertify. This case also underscores the … Continue Reading