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$15M Judgment Reversed Due to Flawed Statistical Sampling Approach to Class Action

In a significant victory for California employers, the California Supreme Court threw out a $15 million judgment in favor of allegedly misclassified employees. In Duran v. U.S. Bank National Association, a putative class of...more

No Liability for Off-the-Clock Work Absent Employer Knowledge

A California appeals court refused to hold Kaiser Foundation Health Plan liable for alleged off-the-clock overtime about which it lacked knowledge. In Jong v. Kaiser Foundation Health Plan, Inc., Jong, together with two other...more

Fenwick Employment Brief - June 2014

No Liability for Off-the-Clock Work Absent Employer Knowledge - A California appeals court refused to hold Kaiser Foundation Health Plan liable for alleged off-the-clock overtime about which it lacked knowledge. In...more

FEHA Limitations Period Cannot be Shortened by Agreement

In Ellis v. U.S. Security Associates, a California Court of Appeal held that an employer’s attempt to shorten the one year statute of limitations to file a harassment claim under FEHA was against public policy and...more

NLRB Continues to Scrutinize Employee Handbook Provisions

In Hills and Dales General Hospital, the NLRB recently determined that an employer’s standards of behavior policy that prohibited “negative comments” and “negativity or gossip,” and directed employees to represent the...more

SEC Cautions Employers Not To Discourage Whistleblower Claims

In a recent speech, the SEC recently warned businesses not to attempt to disincentivize company whistleblowers from bringing alleged wrongdoing to the attention of the SEC, and that the SEC is “very concerned” about any...more

Employee Terminated for Stealing Caused by Disability Entitled to Discrimination Trial

Is an employer allowed to enforce a uniformly-applied workplace conduct policy against an employee whose misconduct was caused by her disability? A federal district court in California said “maybe, maybe not,” and determined...more

Supreme Court Confirms FICA Taxes Must be Withheld from Severance Payments

Finding severance payments to be a form of “remuneration for employment,” the United States Supreme Court in United States v. Quality Stores, Inc. held that such payments are taxable wages – and thus subject to withholding –...more

Fenwick Employment Brief - April 2014

Supreme Court Confirms FICA Taxes Must be Withheld from Severance Payments - Finding severance payments to be a form of “remuneration for employment,” the United States Supreme Court in United States v. Quality Stores,...more

No Showing That “Primarily Engaged In” Requirement Met Where Executive Employee Spent More Than 50% Of Time Performing Non-Exempt...

In Guilfoyle v. Dollar Tree Stores, Inc., a federal district court in California held that an employer was unable to meet the “primarily engaged in” requirement of the executive exemption test where the employee spent more...more

Walmart Potentially Liable For Wage Violations As Joint Employer Of Subcontractors’ Employees

Finding that ample evidence existed that Walmart exercised control over the working conditions of the workers employed by Walmart’s warehouse subcontractors, a California federal district court in Carrillo v. Schneider...more

Age Discrimination Claim Survives Dismissal Where Questions Existed Regarding Adequacy Of Job Performance And Employee Presented...

Reversing a trial court’s decision in favor of the employer, a California Court of Appeals in Cheal v. El Camino Hospital held that a former employee may present her age discrimination claim to a jury because there were...more

Access Of Computer System With Log-In Credentials Is Not Unlawful “Hacking”

A California federal court in Enki Corporation v. Freedman held that a former employee’s access of the employer’s computer systems through his log-in credentials did not amount to unlawful hacking under either the Computer...more

Fenwick Employment Brief - February 2014

A California federal court in Enki Corporation v. Freedman held that a former employee’s access of the employer’s computer systems through his log-in credentials did not amount to unlawful hacking under either the Computer...more

New Tax Law—Think Twice Before Agreeing Not to Contest UI Claim

Under amendments to the Unemployment Insurance Integrity Act of 2011 that took effect in late October, employers must now timely and adequately respond to a state unemployment agency’s information request about an employee’s...more

No Duty to Explore Cause of Poor Performance Absent Notice of Correlation to Disability

A federal district court in Washington refused to require an employer, absent some notice from an employee of the need to do so, to investigate the cause of the employee’s poor performance to explore whether it might be...more

Discrimination Claim—Based on Association to Disabled Relative—Survives Dismissal Request

In Rope v. Auto-Chlor System of Washington, Inc., plaintiff Scott Rope, a former branch manager for Auto-Chlor, sued his employer for violation of the newly-enacted Michelle Maykin Memorial Donation Protection Act,...more

Class Action Waiver in Arbitration Agreement Survives NLRA Challenge

Finding the National Labor Relations Board failed to give appropriate weight to the Federal Arbitration Act, the federal Fifth Circuit Court of Appeals overturned a Board decision invalidating an arbitration agreement that...more

Fenwick Employment Brief - December 2013

Finding the National Labor Relations Board failed to give appropriate weight to the Federal Arbitration Act, the federal Fifth Circuit Court of Appeals overturned a Board decision invalidating an arbitration agreement that...more

New Trial To Determine Whether Pregnancy Leave Was “Substantial Motivating Reason” For Termination Upon Return

Following the California Supreme Court’s guidance in Harris v. City of Santa Monica (February 2013 FEB) that an employment action is illegal only where bias is a “substantial motivating factor” for the action, a California...more

Arbitration Agreement Withstands Challenge For Lack of Notice of Arbitration Rules or Mutuality

In Peng v. First Republic Bank, a former employee asserting discrimination and other claims challenged the enforceability of the arbitration agreement she signed as a condition of employment. Specifically, she asserted that...more

Family-Related Legislative and Ordinance Update

California employers should note the following legislative developments related to employees and their familial obligations: SB 770: Governor Brown signed into law a bill that expands the list of family members for...more

Putative Class Targets Purported Deficiencies in Employer Meal and Rest Break Policies

Following the California Supreme Court’s Brinker ruling (April 2012 Employment Alert) that a California employer satisfies its meal/rest period obligations by “providing” rather than “ensuring” employees take rest and meal...more

Employer Liable for Disregarding Complaints About Soiled Toilet, Porn, and Retaliation — Possible Punitive Damages

In Davis v. Kiewit Pacific Company, Lisa Davis, a heavy machine operator and one of two female employees at a 100-employee excavation project, prevailed in her claims of gender discrimination, hostile work environment, and...more

Is an Honor Vacation Policy Right for My Company? [Video]

Companies in California and across the United States are moving away from traditional vacation accrual policies to unlimited vacation policies, or honor vacation policies. What is an honor vacation policy? How can start-ups...more

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