News & Analysis as of

Negligence › Unpaid Wages

Parker Poe Adams & Bernstein LLP

Fourth Circuit Says Negligence Not Grounds for Awarding Additional Year of FLSA Overtime Pay

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Employers that fail to pay required minimum wage or overtime under the Fair Labor Standards Act are liable for the amount of missed wages: doubled, plus attorneys fees, costs, and interest. The court can award such damages...more

Fox Rothschild LLP

In FLSA Claims, Second Circuit Tightens Pleading Standard To Extend Statute Of Limitations

Fox Rothschild LLP on

In a victory for employers, the Second Circuit held that plaintiffs seeking to invoke the expansive three-year statute of limitations in the Fair Labor Standards Act (FLSA) must plead specific facts to support a claim that an...more

Weintraub Tobin

California Supreme Court Holds that Payroll Services Provider ADP Cannot Be Sued for Breach of Contract, Negligence, and Negligent...

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Can an employee sue the employer’s payroll service for failure to correctly process and report payroll? According to the California Supreme Court recent decision in Goonewardene v. ADP, LLC (2019) 6 Cal.5th 817, the answer...more

Ogletree, Deakins, Nash, Smoak & Stewart,...

California Supreme Court Holds Employees Cannot Sue Their Employers’ Payroll Companies for Wage Claims

Ogletree, Deakins, Nash, Smoak & Stewart,... on

On February 7, 2019, the Supreme Court of California issued its decision in Goonewardene v. ADP, LLC, holding that employees may not sue their employers’ payroll companies for wage claims in connection with their employment....more

Jackson Lewis P.C.

Payroll Company Not Liable Under Third Party Beneficiary Doctrine

Jackson Lewis P.C. on

On February 7, 2019, the California Supreme Court determined that an employee cannot sue a payroll company for breach of contract under the third party beneficiary doctrine, and that it is inappropriate to impose a tort duty...more

Constangy, Brooks, Smith & Prophete, LLP

California Snapshot: Payroll Company Not Liable For Alleged Wage-Hour Violations Of Employer

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At least, not directly. Can an employee sue her employer’s payroll services provider for alleged violations of California’s wage and hour laws? According to a recent decision from the California Supreme Court, the answer...more

Haight Brown & Bonesteel LLP

Supreme Court Prevents Employees’ Tort and Contract Claims Against Employers’ Payroll Companies

Haight Brown & Bonesteel LLP on

In Goonewardene v. ADP, LLC (S238941), the California Supreme Court has created new protections for payroll companies in lawsuits involving claims of labor violations. Although previous case law has held that employees with...more

Sheppard Mullin Richter & Hampton LLP

California Supreme Court Announces a Win for Payroll Outsourcing Industry

Sheppard Mullin Richter & Hampton LLP on

Last week, the California State Supreme Court struck a decisive victory in favor of payroll companies, issuing a unanimous opinion that an employee is not a third-party beneficiary of the contract between her employer and its...more

Akin Gump Strauss Hauer & Feld LLP

California Supreme Court Holds that Employee Cannot Bring Wage Claims Against Payroll Service Provider

Akin Gump Strauss Hauer & Feld LLP on

• The California Supreme Court recently held that an employee could not pursue contract and tort claims against a payroll service provider for unpaid wages. • The Court found that (1) an employee was not a “third-party...more

Seyfarth Shaw LLP

Termination Pay Penalties: Easy To Incur, Impossible To Reduce?

Seyfarth Shaw LLP on

Seyfarth Synopsis: Employers must pay “waiting time” penalties for willfully failing to timely pay wages due upon termination. Last week the California Court of Appeal dealt employers a double whammy: (i) mere negligence can...more

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