On May 10, 2024, the Ninth Circuit decided Yuriria Diaz v. Macy’s West Stores, after the employer appealed the district court’s decision ordering arbitration of both an employee’s individual and non-individual claims under the California Private Attorney Generals Act (PAGA). The Ninth Circuit held that even though the arbitration agreement made no mention of PAGA, an employee’s individual PAGA claim was still subject to arbitration because the parties’ intended to arbitrate all employment disputes between them. However the non-individual PAGA claims were not arbitrable, because the parties did not consent to arbitration of those claims. Continue Reading Ninth Circuit Rules That Only Individual PAGA Claims Can Be Compelled to Arbitration
Labor and Employment
Cannabis Operator Challenges California State Statute and Regulations Requiring Labor Peace Agreements
On April 26, 2024, Ctrl Alt Destroy, Inc. (“CAD”), a California Corporation and cannabis licensee filed a lawsuit against Nicole Elliott in her official capacity as Director of the State of California’s Department of Cannabis Control (“DCC”) and Rob Bonta in his official capacity as Attorney General of the State of California, seeking declaratory and injunctive relief alleging that California’s Medicinal and Adult-Use Cannabis Regulation and Safety Act (“MAUCRSA”) is unconstitutional under the Fifth and Fourteenth Amendments to the US Constitution and is preempted by the National Labor Relations Act (“NLRA”).Continue Reading Cannabis Operator Challenges California State Statute and Regulations Requiring Labor Peace Agreements
NLRB General Counsel Issues New Memo Further Expanding Penalties for Unfair Labor Practice Violations
Through Board decisions, rule making, and NLRB General Counsel’s (“GC”) memoranda, the National Labor Relations Board (“NLRB” or “the Board”) continues to expand the potential penalties for employers found to have committed unfair labor practices (“ULP”). The shift toward an employee-friendly enforcement scheme has continued with GC Jennifer Abruzzo’s latest memorandum, issued on April 8, 2024, wherein the GC stated her desire to expand the availability of remedies for violations of labor law to even those employees who did not file, or are not identified in, ULP charges. Continue Reading NLRB General Counsel Issues New Memo Further Expanding Penalties for Unfair Labor Practice Violations
Cal/OSHA Publishes Long-Awaited Guidance and Model Workplace Violence Prevention Plan
Starting July 1, 2024, California employers across all industries must have a written Workplace Violence Prevention Plan (“WVPP”) in place. As previously reported, the recently enacted SB 553 established this new requirement, along with mandatory employee training, initial and periodic workplace violence hazard inspections, and maintenance of a violent incident log and other related records. On March 18, 2024, California’s Division of Occupational Safety and Health (“Cal/OSHA”), the agency responsible for enforcing the new law’s requirements, announced the creation of its Cal/OSHA Workplace Violence Prevention Guidance and Resources webpage. The webpage contains guidance and educational materials on the new law and workplace violence prevention, a model WVPP, fact sheets, and other resources for employers and employees. Continue Reading Cal/OSHA Publishes Long-Awaited Guidance and Model Workplace Violence Prevention Plan
Ninth Circuit Applies Adolph, Vacating Lower Court’s Dismissal of Employee’s Nonindividual PAGA Claims
On February 12, 2024, the Ninth Circuit in Johnson v. Lowe’s Home Centers, LLC, 93 F.4th 459 (9th Cir. 2024) vacated a district court’s dismissal of a former employee’s nonindividual PAGA claims and remanded the nonindividual claims to allow the district court to apply California law as interpreted in Adolph v. Uber Techs., Inc., 14 Cal. 5th 1104 (2023) (“Adolph”).Continue Reading Ninth Circuit Applies Adolph, Vacating Lower Court’s Dismissal of Employee’s Nonindividual PAGA Claims
Safe for Work? New Social Media Privacy Law Affecting New York Employers Goes into Effect on March 12
Beginning on March 12, 2024, a new social media privacy law for employees and job applicants goes into effect in New York. The new law will amend the New York Labor Law (the “NYLL”) to restrict most employers from accessing the personal social media accounts of employees and job applicants. The new restrictions were approved when Governor Kathy Hochul signed into law two bills, Assembly Bill 836 (A836) and Senate Bill 2518A (S2518A), on September 14, 2023.Continue Reading Safe for Work? New Social Media Privacy Law Affecting New York Employers Goes into Effect on March 12
California Supreme Court Concludes PAGA Actions Cannot be Dismissed as Unmanageable
For companies doing business in California, it’s important to be aware of the January 18, 2024 California Supreme Court decision in Estrada v. Royalty Carpet Mills, Inc.*, which examined whether trial courts can strike PAGA claims on manageability grounds. PAGA, or the Private Attorneys General Act of 2004, created new enforcement and procedural standards to the California Labor Code’s wage and hour provisions. While the law has been viewed as pro-plaintiff, the decision in Estrada can be seen as underscoring that point of view.Continue Reading California Supreme Court Concludes PAGA Actions Cannot be Dismissed as Unmanageable
Chicago’s Paid Leave and Paid Sick and Safe Leave Ordinance Ushers in Some of the Nation’s Most Generous Employee Leave Entitlements
Chicago’s recent enactment of its Paid Leave and Paid Sick and Safe Leave Ordinance (“Ordinance”) marks some of the country’s most progressive paid time off legislation and also imposes robust requirements upon Chicago employers. On November 9, 2023, Chicago’s City Council passed the Ordinance, effective December 31, 2023, touting it as a benefit to low-wage workers previously lacking vacation time.Continue Reading Chicago’s Paid Leave and Paid Sick and Safe Leave Ordinance Ushers in Some of the Nation’s Most Generous Employee Leave Entitlements
New California Law Makes It Easier for Employees to Establish Retaliation Claims for Alleged Labor Code Violations
On October 8, 2023, California Governor Gavin Newsom signed into law Senate Bill No. 497, the “Equal Pay and Anti-Retaliation Protection Act.” The new law amends California Labor Code sections 98.6, 1102.5, and 1197.5 to create a “rebuttable presumption of retaliation” if an employee experiences an adverse employment action within 90 days of engaging in any protected activity covered by the specified sections. This new law, which will become effective on January 1, 2024, also entitles a prevailing plaintiff civil penalties for each violation.Continue Reading New California Law Makes It Easier for Employees to Establish Retaliation Claims for Alleged Labor Code Violations
Time to Prepare for the New Year: Illinois’ Pre-Tax Commuter Benefits Law Goes into Effect in 2024
Beginning on January 1, 2024, pursuant to House Bill 2068, Illinois employers located across thirty-eight (38) counties and townships will be required to provide employees with a “pre-tax commuter benefit.” This is one of a number of new Illinois laws impacting employers going into effect at the start of the new year.Continue Reading Time to Prepare for the New Year: Illinois’ Pre-Tax Commuter Benefits Law Goes into Effect in 2024