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The California Supreme Court (the “Court”) has confirmed that an arbitration agreement’s formatting—standing alone—does not render its terms substantively unconscionable, even where the text is difficult to read.1 The Court...more
In Fuentes v. Empire Nissan, Inc., the California Supreme Court recently issued an opinion calling on courts to “closely scrutinize” arbitration agreements for substantive unconscionability where there is extreme procedural...more
The California Supreme Court held that illegibility and tiny font are matters of procedural, not substantive, unconscionability. However, courts must closely scrutinize the terms of hard-to-read agreements for unfairness, and...more
In employment cases, Plaintiff’s claim that arbitration agreements with small or blurry print should not be enforced as substantively and procedurally unconscionable due to the difficulty in reading the words in the contract....more
On February 3, 2026, the California Supreme Court issued its decision in Fuentes v. Empire Nissan, Inc. In this decision, which dealt with an illegible arbitration provision, the Supreme Court reversed the lower court and...more
The California Supreme Court held in Fuentes v. Empire Nissan, Inc. (Feb. 2, 2026) that small or blurry print in an arbitration agreement does not automatically invalidate the agreement as unconscionable. Instead, the Court...more
Several employment-related cases are currently pending before the California Supreme Court, and their outcomes could have a significant impact on workplace policies and risk management for employers and HR professionals....more
This case involves the (much-litigated) issue currently pending before the California Supreme Court in Leeper v. Shipt, Inc., 107 Cal. App. 5th 1001, rev. granted (2025): Does the version of PAGA in effect from 2016 to...more
The California Supreme Court recently issued an opinion that serves as an important reminder to employers: good intentions regarding compliance with wage laws are not enough to avoid liquidated damages for minimum wage...more
Even with the statutory clarifications that came along with last year’s PAGA reforms, California courts continue to wrestle with one of the thorniest aspects of the law: whether plaintiffs can maintain particularly troubling...more
On the heels of the California Supreme Court’s ruling in Hohenshelt v. Superior Court, the California Court of Appeal’s recent decision in Wilson v. TAP Worldwide, LLC has provided welcome clarity and significant breathing...more
The California Supreme Court recently held in Iloff v. LaPaille that an employer seeking to assert the good-faith defense to avoid mandated liquidated damages for failing to pay an employee the minimum wages must show that...more
In Hohenshelt v. Superior Court, the California Supreme Court held that Section 1281.98 of the California Arbitration Act (CAA) is not preempted by the Federal Arbitration Act (FAA). Section 12.81.98 provides that if a party...more
The Fifth District Court of Appeal reaffirmed its earlier holding in CRST Expedited, Inc. v. Superior Court that plaintiffs can bring “headless” PAGA actions—claims seeking civil penalties solely for Labor Code violations...more
The California Supreme Court recently granted employers a modicum of relief from the harsh consequences of an employer’s failure to timely pay required arbitration fees within the 30-day deadline imposed by California Code of...more
Hohenshelt v. Golden State Foods Corp., 18 Cal. 5th 310 (2025) - In this closely watched case, the California Supreme Court held that California Code of Civil Procedure Section 1281.98 — a do-or-die statute requiring...more
As defense attorneys, we often encounter matters where an employer’s good-faith mistake gives rise to wage and hour litigation. While ignorance of the law generally provides no defense, a good-faith mistake, historically...more
When it comes to minimum wage law violations in California, employers should take note that ignorance of the law has been ruled out as a valid good-faith defense to an award of liquidated damages. In Iloff v. LaPaille, the...more
In Leeper v. Shipt, the California Supreme Court will revisit the ongoing question of whether, and to what extent, employees can pursue litigation in court for violation of the California Private Attorneys General Act (PAGA),...more
In a unanimous decision that strengthened California’s already robust worker protections laws, the state’s Supreme Court has made it harder for employers to avoid increased damages for minimum wage violations. The ruling in...more
On August 21, 2025, the Supreme Court of California ruled that employers must demonstrate that they took reasonable steps to comply with minimum wage laws to mount a good-faith defense against liquidated damages. The decision...more
On 11 August 2025, California employers scored some relief from a rigidly applied arbitration statute with the California Supreme Court’s highly anticipated decision in Hohenshelt v. Superior Court (Hohenshelt)....more
The California Supreme Court held that an employer must prove that it made a reasonable attempt to decipher the requirements of the law governing minimum wages in order to avail itself of the good faith defense against...more
I have some good news for California employers seeking to enforce arbitration agreements. The California Supreme Court just held that non-payment of arbitration fees does not automatically waive the right to arbitrate....more
On August 11, 2025, the California Supreme Court issued a decision in the matter of Dana Hohenshelt v. The Superior Court of Los Angeles, ruling that the Federal Arbitration Act (“FAA”) does not preempt the California...more