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California’s Amended PAGA Statute Eases Burdens on Employers

The California Legislature passed legislation on June 27, 2024, representing a significant overhaul of the Labor Code Private Attorneys General Act of 2004 (PAGA). PAGA permits a current or former employee to pursue an action...more

California Supreme Court: Exit Security Checks in Personal Vehicles Are Compensable

On March 25, 2024, the California Supreme Court held that workers are entitled to compensation for time spent undergoing exit security checks that included an inspection of their personal vehicle. In the same decision, the...more

California Supreme Court Rejects PAGA Manageability Argument

Defendants have long argued that Private Attorneys General Act (PAGA) claims can be unwieldy and that courts should strike such claims where individual issues make them unmanageable. In Estrada v. Royalty Carpet Mills, Inc.,...more

California Expands Protections for Employees Who Use Recreational Cannabis

Effective Jan. 1, 2024, California employers may not inquire about employees’ prior use of cannabis, even if the employer learns of that prior use from an employee’s criminal history. On Oct. 7, 2023, Gov. Gavin Newsom...more

Uber’s Challenge to Non-Individual PAGA Standing Crashes at the California Supreme Court

In a significant blow to employment-related arbitration agreements, the California Supreme Court ruled in Adolph v. Uber Technologies, Inc. that an employee has standing to bring non-individual, representative California...more

California Protects Employees Who Use Recreational Cannabis and Limits Drug Tests

Effective Jan. 1, 2024, California law will restrict employers from using traditional drug tests to test for cannabis use. California Gov. Gavin Newsom signed the law on Sept. 18, 2022, prohibiting employers from...more

Silvergate, Silicon Valley Bank, Bank Receiverships in General, and Payroll Regulatory Challenges

In the wake of Silvergate’s collapse, Silicon Valley Bank entering receivership and another bank following in SVB’s footsteps, startups and other companies affected by these events are struggling to manage their payroll and...more

Ninth Circuit Holds Federal Arbitration Act Preempts California Law Prohibiting “Forced Arbitration”

On Feb. 15, 2023, the Ninth U.S. Circuit Court of Appeals affirmed a district court’s ruling that the Federal Arbitration Act (FAA) preempts California Assembly Bill 51 (AB 51), which made it a criminal offense for an...more

Employers Face Six-Year Statute of Limitations for Criminal Background Check Claims

On Jan. 12, 2023, the U.S. District Court for the District of New Jersey held in Ramos v. WalMart, Inc. that Pennsylvania plaintiffs have up to six years to file claims against employers for improper use of criminal history...more

New California Employment Laws Take Effect in 2023

California has introduced some significant and widely applicable new employment laws that took effect on Jan. 1, 2023, unless otherwise stated. Minimum Wage Increases - On Jan. 1, 2023, the California state minimum...more

California’s Requirements for Pay Transparency to Increase in 2023

On Sept. 27, 2022, in a continuing effort toward pay equity, California Gov. Gavin Newsom signed Senate Bill 1162, the state’s pay transparency law. S.B. 1162 brings a number of changes employers will need to implement by...more

U.S. Supreme Court: Individual PAGA Claim Must Cruise Into Arbitration

In a significant ruling for California employers, the U.S. Supreme Court on June 15, 2022, held in Viking River Cruises, Inc. v. Moriana, No. 20-1573, that the Federal Arbitration Act (FAA) partially preempts California state...more

California Supreme Court: Meal and Rest Premium Payments Are “Wages”

On May 23, 2022, the California Supreme Court held that premium pay for missed meal and rest breaks pursuant to Cal. Labor Code Section 226.7 are “wages” that must be reported on wage statements per Cal. Lab. Code § 226 and...more

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