In Kim v. Reins International California, Inc. 18 Cal.App.5th 1052 (2017), the California Court of Appeal for the Second Appellate District held an employee-plaintiff that settled and dismissed his individual claims was no longer an “aggrieved employee” for purposes of standing to bring a claim for civil penalties under the Private Attorneys General Act
Newsom Signs Law Increasing Penalties Available to Workers
On October 10, 2019, Governor Gavin Newsom signed AB 673 into law, expanding an employee’s right to collect penalties for an employer’s failure to timely pay wages.
Prior to the enactment of AB 673, Labor Code section 210 provided a penalty that was directly recoverable by the Labor Commissioner or by an employee authorized to…
California Supreme Court Rejects Claim for Unpaid Wages under PAGA
Putting an end to employees’ backdoor attempts to recover unpaid wages in Private Attorneys General Act-only actions under California Labor Code Section 558, the California Supreme Court has ruled against allowing such claims. ZB, N.A., et al. v. Superior Court, No. S246711 (Sept. 12, 2019).
This is surprising, as the Court provided this much-needed guidance…
CASE LAW UPDATE: California Employees Cannot be Compelled to Arbitrate PAGA Claim Without the Government’s Consent
In a recent case, the California Court of Appeal held, employees could not be compelled to arbitrate their claim under California’s Private Attorney General Act without the government’s consent, despite signing an arbitration agreement. Correia v. NB Baker Electric.
There, plaintiffs Mark Correia and Richard Stow sued their former employer, NB Baker, alleging wage-and-hour violations…
Lawsuit Filed Against California’s Attorney General Alleging the Private Attorneys General Act (“PAGA”) is Unconstitutional
On November 28, 2018, the California Business & Industrial Alliance (an association that represents the interests of small and mid-sized businesses in California and which was formed for the specific purpose of accomplishing the appeal or reform of the Private Attorneys General Act (“PAGA”)) filed a lawsuit against Xavier Becerra in his official capacity as…
California Construction Industry Could Avoid Big Civil Penalties Claims: Union Employers Should Review the New Collective Bargaining Exemption to Potential PAGA Claims
Unionized employers in the construction industry can potentially receive some well-needed relief from California’s Labor Code Private Attorneys General Act of 2004 (Labor Code Section 2698 et seq.), known as “PAGA,” in light of the Governor signing AB 1654. Unionized employers in California must review their collective bargaining agreements and evaluate whether they can take…
Settling Plaintiff May Still Have Standing And Adequacy To Pursue Class Action and PAGA Claims
A California federal judge recently certified a class of at least 843 Cinemark workers who allege Cinemark, a movie theater chain, failed to properly list overtime rates on employee wage statements, notwithstanding the fact that the purported class representative, Silken Brown, had settled her individual claim during the pending litigation. In opposing class certification, Cinemark…
Class Action Waivers Remain Inapplicable to PAGA Claims
The U.S. Supreme Court’s recent ruling that class action waivers in employment arbitration agreements are enforceable under the Federal Arbitration Act (FAA) does not extend to claims under the California Private Attorneys General Act (PAGA). Epic Systems Corp. v. Lewis, No. 16-285; Ernst & Young LLP et al. v. Morris et al., No. 16-300; National …
Balancing Client Needs with Employee Needs
A decision out of the Northern District of California serves as a reminder that service industries need to carefully balance their commitment to client care with wage and hour obligations. A case manager at a large medical facility filed a class action claim under the California Private Attorneys General Act (“PAGA”) against the facility for…
Plaintiffs Cannot Bring PAGA Claims If They Fail to Give Notice of a Representative Action
In Hamid H. Khan v. Dunn-Edwards Corporation (January 4, 2018), the California Court of Appeal for the Second Appellate District held that the plaintiff failed to comply with required administrative procedures prior to bringing a claim under the California Private Attorneys General Act (“PAGA”) because he failed to provide sufficient notice to the California Labor…