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BT Currents - Hot Topics in Employment Law

24 Apr California Supreme Court Throws Down the Gauntlet on Arbitration Waivers

  The California Supreme Court is no stranger to invalidating mandatory arbitration provisions. Recently, however, the court lay down yet another challenge to the U.S. Supreme Court’s AT&T Mobility LLC v. Concepcion case, holding that an arbitration agreement that waives the right to public injunctive relief is unenforceable under California law.   In the case, McGill v. Citibank, N.A., Sharon McGill alleged that Citbank engaged in illegal and deceptive practices in marketing a credit insurance plan she purchased. She filed a class action suit under…

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05 Apr Ok…Are You Sitting Down?

More than five years ago, the California plaintiffs’ bar launched a series of lawsuits against various retailers alleging that they were violating a part of the California wage orders that require suitable seating to be available to workers. For the mercantile industry, the regulations require:   (A) All working employees shall be provided with suitable seats when the nature of the work reasonably permits the use of seats.   (B) When employees are not engaged in the active duties of their employment and the nature…

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28 Apr Not so Fast: ‘No-Rehire’ Clauses Could be a Restraint on Trade

It is common practice that most employers settling with former employees include a clause in said settlement or separation agreements saying that the employee would never reapply to the company and was also not eligible for rehire. However, there is not clear authority saying those actual clauses are legally permissible. A divided Ninth Circuit panel has recently held that such clauses may constitute an unlawful restraint of trade under California law. As such, employers should give serious consideration and thought to including a pro forma “no re-hire” provision…

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30 Jan Are You Relying on Electronic Signatures for Employment Documents?

The California Court of Appeal, Fourth Appellate District, in Ruiz v. Moss Bros. Auto Group, Inc., recently affirmed an order denying a petition to compel arbitration where the employer failed to present sufficient evidence that the employee electronically signed an arbitration agreement. In Ruiz, Plaintiff Ernesto Ruiz filed a putative class action complaint alleging various wage and hour violations by his employer, Moss Bros. The company filed a petition to compel arbitration of Mr. Ruiz’s individual claims based on an arbitration agreement the Company claimed he electronically…

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09 Jan On Break, But Still on Call: “On Call” Rest Breaks are Permissible Under California Law

On Dec. 31, 2014, the California Court of Appeal, Second District reversed a $94 million judgment in a wage-and-hour class action against ABM Industries Incorporated (ABM) in Augustus et al. v. ABM Security Services Inc.  The judgment was initially granted by a California trial court in 2012. ABM appealed the damages award, which was granted on summary judgment in a set of consolidated class actions alleging ABM’s policy of requiring security guards to carry a radio during their breaks effectively put them “on call” during…

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