Viking River Cruises Inc. v. Moriana, 142 S.Ct. 1906 (2022)
Summary: The FAA “preempts the rule of Iskanian insofar as it precludes division of Personal Attorneys Common Act (“PAGA”) steps into individual and non-particular person claims as a result of an arrangement to arbitrate.”
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Grande v. Eisenhower Health-related Centre, No. S261247, 2022 WL 2349762 (Cal. June 30, 2022)
Summary: Res judicata did not bar claims in a course action in opposition to a hospital exactly where a staffing company had previously entered into a course action settlement agreement that did not explicitly launch the clinic from all related statements.
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Meza v. Pacific Bell Telephone Co., No. B317119, 2022 WL 2186251 (Cal. Ct. App. June 17, 2022)
Summary: Labor Code part 226(a)(9)’s requirement to checklist “hourly fees in outcome in the course of the spend interval and the corresponding amount of hrs labored at just about every hourly rate” does not apply to overtime true-up payments that relate to a earlier shell out time period.
Info: Plaintiff Dave Meza submitted a course motion lawsuit towards his former employer, Defendant Pacific Bell Phone Co., alleging various California Labor Code violations, like failure to deliver compliant meal and relaxation durations and failure to supply precise wage statements. The trial courtroom: (1) denied class certification as to five meal and relaxation time period classes (2) granted summary adjudication on the wage assertion assert in favor of Defendant (3) struck Plaintiff’s assert underneath segment 226(a)(6) and (4) granted summary adjudication of Plaintiff’s California Labor Code Personal Attorneys Common Act (“PAGA”) declare in favor of Defendant. Plaintiff appealed these 4 orders.
Court’s Conclusion: In the printed portion of its viewpoint, the California Court docket of Attraction affirmed the demo court’s get granting summary adjudication of Plaintiff’s wage-statement declare. Plaintiff’s declare was primarily based on how Defendant represented lump-sum overtime payments on its wage statements, especially an overtime “true-up”—additional extra time wages owed based on overall performance bonuses gained in earlier pay out intervals. The calculation concerned a complex components, and Defendant commonly listed this payment on the 1st wage assertion of the thirty day period right after the personnel attained it. When the genuine-up was shown, it did not include information and facts in the “rate” and “hour” columns of the employee’s wage assertion. Plaintiff contended this exercise violated portion 226(a)(9). The court disagreed, decoding segment 226(a)(9) as not requiring an employer to listing the amount and several hours information and facts from prior pay out durations. The courtroom held that a simple looking through of this section showed that it needed a listing of hourly premiums “during the shell out period,” and not “an synthetic, soon after-the-truth amount calculated centered on extra time hrs and charges from previous pay intervals that did not even exist throughout the time of the pay out time period covered by the wage statement.”
Practical Implications: This selection is welcome information for companies who have struggled for some time with the deficiency of guidance from the California courts on their wage-assertion obligations for time beyond regulation real-up payments.
Johnson v. WinCo Food items LLC, 37 F.4th 604 (9th Cir. 2022)
Summary: An employer is not obligated to compensate prospective staff for time and expenditures to consider a required drug exam.
Details: Defendants Winco Food items LLC and Winco Holdings Inc. expected thriving position candidates to take a drug exam as a condition provided in its provides of employment. Plaintiff Alfred Johnson submitted a course motion on behalf of himself and Defendants’ other California personnel, trying to find compensation for time invested and charges incurred having the drug examination. After Defendants taken out the action to federal court and the district court docket granted Plaintiff’s movement for class certification, both equally Plaintiff and Defendants filed motions for summary judgment. The district court docket granted Defendants’ movement, keeping that “Johnson and class members had been not employees of Winco Meals when they underwent drug testing.” Plaintiff appealed.
Court’s Conclusion: The Court docket of Appeals for the Ninth Circuit affirmed the district court’s keeping “that the class members have been not workforce at the time of the drug exam and did not need to be compensated.” The court docket rejected Plaintiff’s “control” argument, noting that “[d]rug testing, like an interview or preemployment bodily evaluation, is an exercise to protected a position, not a prerequisite for these now utilized.” The courtroom also turned down Plaintiff’s “condition subsequent” argument, finding that “the course customers did not come to be staff members until finally they happy the issue of passing the preemployment drug exam.”
Functional Implications: Like the Meza circumstance mentioned above, this case supplies a great deal-desired clarity on a concern that occurs regularly for companies in California. Employers need to not go through too substantially into this determination, however. The situation only applies to pre-employment mandatory drug tests, and does not purport to change existing procedures for mandatory drug exams in the course of employment.
Southwest Airlines Co. v. Saxon, 142 S.Ct. 1783 (2022)
Summary: An employee who loads and unloads cargo that travels in interstate commerce belongs to a “class of staff engaged in overseas or interstate commerce” and, as these kinds of, is exempt from the coverage of the FAA.
Facts: Plaintiff Latrice Saxon was a ramp supervisor for Defendant Southwest Airlines Co. Defendant’s ramp supervisors educated and supervised groups of ramp brokers who loaded and unloaded baggage, airmail, and freight on Defendant’s airplanes. Plaintiff introduced a wage-and-hour course action towards Defendant under the Reasonable Labor Specifications Act. Defendant sought to enforce its arbitration agreement with Plaintiff below the Federal Arbitration Act (“FAA”). Plaintiff argued that she was exempt underneath Portion 1 of the FAA as component of a “class of staff engaged in international or interstate commerce.” The district court located that “only all those associated in the ‘actual transportation,’ and not the ‘mer[e] dealing with [of] products,’ fell inside the exemption.” The Courtroom of Appeals for the Seventh Circuit reversed, keeping “[t]he act of loading cargo on to a vehicle to be transported interstate is alone commerce, as that expression was comprehended at the time of the [FAA’s] enactment in 1925.” The United States Supreme Court docket granted certiorari to address a conflict with an previously final decision from the Fifth Circuit Court of Appeals.
Court’s Determination: The Supreme Courtroom affirmed the judgment of the Seventh Circuit. The Courtroom held that the course of employees who bodily load and unload cargo on and off airplanes on a recurrent foundation are engaged in interstate commerce. The Court reasoned that individuals persons who load and unload cargo on and off airplanes touring in interstate commerce are “as a realistic make a difference, component of the interstate transportation of products.” They are “intimately associated with the commerce,” and are loading and unloading cargo when the interstate transportation even now is in progress.
Sensible Implications: California employment arbitration regulation has found considerable shifts about the last couple years. From AB 51’s ban on obligatory arbitration, to the selection in Viking River Cruises permitting arbitration of specific PAGA claims, businesses in California facial area a pretty various landscape than they did just two decades ago. This case adds yet an additional consideration for employers concerned in the transportation business. Employers with employees who, like the ramp brokers in Saxon, are not directly crossing condition traces but are nonetheless associated in the physical motion of items in interstate commerce, need to take into account very carefully irrespective of whether revisions to their arbitration agreements, this kind of as invoking condition somewhat than federal method, may perhaps be vital to steer clear of the hazard that the FAA’s “foreign or interstate commerce” exception will render their arbitration agreements unenforceable.
Hamilton v. Wal-Mart Outlets Inc., No. 19-56161, 2022 WL 2350262 (9th Cir. June 30, 2022)
Summary: Rule 23(b)(3) manageability need are unable to be imposed on PAGA statements.
Info: Plaintiff Alyssa Hernandez brought various wage-and-hour promises, including statements underneath the California Labor Code Private Attorneys General Act (“PAGA”), versus her previous employer, Defendants Wal-Mart Stores Inc. and Wal-Mart Associates Inc. Plaintiff alleged that Defendants did not completely compensate staff members for all time put in likely by means of protection checkpoints and that it did not provide proper food and relaxation breaks she also asserted by-product ready-time and wage-assertion statements. Defendants moved for summary judgment on the PAGA statements, arguing, among the other factors, that the claims were being unmanageable and that Plaintiff experienced failed to seek out certification of these promises below Rule 23 of the Federal Principles of Civil Course of action. The court docket dismissed the PAGA assert related to the protection checkpoint difficulty as unmanageable and dismissed the remaining PAGA statements for failure sufficiently to disclose believed damages underneath Rule 26(a) of the Federal Guidelines of Civil Procedure. Soon after a bench trial on Plaintiff’s remaining statements, Plaintiff appealed the dismissal of her PAGA claims.
Court’s Determination: The Courtroom of Appeals for the Ninth Circuit reversed. Initially, the court docket held that because PAGA actions “exhibit just about none of the procedural attributes of course steps,” they want not fulfill Rule 23 course certification needs. Second, the court docket turned down Defendants’ argument that the district court docket had inherent authority to strike the PAGA statements as unmanageable. The court uncovered that imposing a manageability need in PAGA steps “would not represent a realistic reaction to a distinct issue and would contradict California legislation by jogging afoul of the critical characteristics of PAGA actions.” 3rd, the court identified that the district court erred in dismissing some of Plaintiff’s PAGA statements as a discovery sanction for Plaintiff’s failure sufficiently to disclose approximated damages under Rule 26(a). Because PAGA offers for restoration of civil penalties, and not damages, Rule 26 did not apply.
Realistic Implications: This situation is a blow for employers in California. PAGA claims frequently present important, functional manageability worries, and businesses historically have experienced good results in employing those people considerations to forestall usually protracted, high-priced, and messy litigation. This situation, even so, is not however resolved as a subject of California point out legislation. The California Supreme Court docket has granted critique in Estrada v. Royalty Carpet Mills Inc., 76 Cal. App. 5th 685 (2022), which established a split in the court of appeal, review Wesson v. Staples the Workplace Superstore, 68 Cal. App. 5th 746 (2021), above no matter if a point out demo court docket has the inherent authority to strike an unmanageable PAGA claim. We will be looking at this scenario closely.