California Supreme Court Holds That Meal And Rest Break Premiums Must Include All Forms Of Remuneration (Not Just Base Hourly Rate)

On July 15, 2021, the California Supreme Court issued its decision in Ferra v. Loews Hollywood Hotel, LLC, in which it held that meal and rest break premiums required under California Labor Code section 226.7 (“Section 226.7”) must be paid at non-exempt employees’ regular rate of pay—not merely their base hourly rate. The decision, which applies retroactively, requires that employers...

The Essentials – California Employment Law Update

MAGADIA V. WAL-MART ASSOCS., INC., NO. 19-16184 (9TH CIR. MAY 28, 2021) In a class action and Private Attorneys General Act (PAGA) lawsuit alleging meal-break and wage-statement violations under the California Labor Code, the 9th Circuit reversed the lower court’s ruling against Wal-Mart, holding that: (1) plaintiff lacked standing to bring the PAGA claim because she did not personally suffer...

Nursing Home Covid-19 Death Claims Sent Back to State Court

A case against a California nursing home over a resident’s alleged coronavirus death can proceed in state court despite the facility’s bid to move it to federal court, a U.S. district judge ruled. The decision highlights the extent to which a federal public readiness law prevents state-law, pandemic-related negligence claims. At least a half dozen federal circuits are hearing similar...

Ninth Circuit Reverses $100+ Million Wage Statement Ruling Against Walmart

On May 28, 2021, the Ninth Circuit Court of Appeals issued a significant ruling in Magadia v. Wal-Mart Associates, Inc., on both California’s wage statement laws and standing to pursue claims under the Private Attorneys General Act of 2004 (PAGA) in federal court. On the wage statement claims, the Ninth Circuit reversed the trial court, and found no technical wage...

Appeals Court Hears Arguments in California Nondriving Pay Lawsuit

A U.S. appeals court on June 10 heard oral arguments in a class-action case in which California truck drivers argued they should have been paid for nondriving work time, even while under a piece-rate basis agreement with a motor carrier to transport a load. The three-judge panel of the 9th U.S. Circuit Court of Appeals is being asked by the...

America’s Largest Fast-Food Chain Is Being Sued For Texting Customers

A customer of the Subway sandwich chain was cleared to proceed with her lawsuit against the company for incessantly texting her even after she asked them to stop. Marina Soliman filed the lawsuit in March of last year because she was receiving promotional text messages from the fast-food chain that she couldn’t opt out of. It all started when she...

Amazon faces 5 more lawsuits from women claiming race and gender discrimination, harassment

Five women who have worked in various roles at Amazon are suing the company, citing racial and gender discrimination. In separate suits filed Wednesday, the diverse group of women, who worked either corporate positions or warehouse management and range in age from 23 to 64, each allege they faced retaliation by their white managers for complaining about the sexual harassment...

Amazon faces lawsuit over missed lunch breaks

A lawsuit that claims one of Amazon’s fulfillment centers in California failed to provide required meal breaks for employees has moved to federal court, as attorneys seek class-action status. First filed in San Francisco County Superior Court in February, the case was removed to US District Court California, Northern District on Friday. Lovenia Scott, a former employee of the Vacaville,...

Wall Street Is Looking Past the Labor Claims Facing Uber and Lyft. Yet They Could Cost Billions

Proposition 22 in California allows companies like Uber Technologies and Lyft to continue classifying drivers as contract workers rather than full-time employees. It’s not clear whether that designation applies retroactively, and that poses a multibillion-dollar risk for investors. California’s attorney general and municipal officials from around the state have sued Uber (ticker: UBER) and Lyft (LYFT), attempting to claw back...

State Supreme Court rules on rounding errors

The California Supreme Court has ruled an employer cannot round the time an employee spends on their meal break to the nearest preset fraction of an hour. The court further held that time records showing noncompliant meal periods raise a rebuttable presumption of meal period violations. Meal Breaks: The Basics A California employer generally must provide nonexempt employees with the...