The best and worst employment case law developments of 2019

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Andrew H. Friedman
               HELMER FRIEDMAN LLP
                                                                                                                       May 2020

The best and worst employment case law developments of 2019
A BRIEF OVERVIEW OF THE MOST IMPORTANT CASE LAW DEVELOPMENTS THAT SHAPED
THE YEAR IN EMPLOYMENT LAW (WITH A BIT OF COLOR COMMENTARY)
     The United States of America has            strikingly personal terms, when-ever they        consumers in California have only the
become, under more than three years of           issue rulings/verdicts with which he disagrees   California State courts to protect them
corrupt tyrannical-like rule by President        and/or to cow them into making opinions/         and, unfortunately, even some of these
Donald John Trump, “skew-jee, awry,              verdicts that he considers favorable.            supposedly liberal courts sometimes place
distorted and altogether perverse.”                    From within, he (along with                corporate interests ahead of the rights of
     Although President Woodrow                  Senator Mitch McConnell) are in a                individual employees and consumers.
Wilson’s Secretary of the Interior,              mad frenzy to fill the federal courts                 What follows is a summary of cases
Franklin Knight Lane, used those words           with an unprecedented number of                  decided before the upcoming tsunami
to describe a different time, they are           ultraconservative judges; such is the            of employment law decisions by Trump
equally applicable today as President            rush that Trump has nominated more               judges which will undoubtedly curtail
Trump, aided and abetted by the                  individuals deemed unanimously                   individual/employee rights in favor of
GOP-controlled Senate, has attacked              unqualified by the American Bar                  corporate interests.
whistleblowers, the media, his political         Association than those similarly rated
rivals (and, sometimes, his political allies),   by the last six presidents (Obama, G.W.
                                                                                                  A clarion call for civility and the
consumers, employees, and everyone else          Bush, Clinton, G.H.W. Bush, Reagan, and          elimination of bias in the practice
whom he deems to have failed to provide          Carter) combined! And, Trump is filling          of law
unconditional support for him and for his        the federal courts at an unprecedented                President Trump’s worst behaviors
policies.                                        rate. These Trump judges (comprising             (incivility, sexism, bias, aggression, anger,
     The President has also attacked our         the least diverse class of judicial nominees     bullying, dishonesty, greed, narcissism,
hitherto independent judicial system both        in modern history), are almost uniformly         and negativity) have infected the bar in
from without and from within. From without,      hostile not only to the rights of employees      California just like a bad case of the novel
he assaults the courts and juries — the          and consumers but also to anything that          coronavirus (COVID-19). And, in a series
bulwarks of our Constitution and laws — by       jeopardizes the unfettered power of              of three cases, the California Courts of
undermining their legitimacy, usually in         President Trump. For now, employees and                        See Friedman, Next Page
Andrew H. Friedman, continued

                                                                                                                     May 2020

Appeal have attempted to prevent the                of California law – a ghost ship reported   appearing before us will not be tolerated,
tide of incivility/bias from spreading any          by a few hardy souls but doubted by         period.”
further by issuing a clarion call for civility      most people familiar with the area in              Finally, in Briganti v. Chow (2019) 42
and the elimination of bias in the practice         which it’s been reported. The section’s     Cal.App.5th 504, the Court of Appeal
of law.                                             adjuration to civility and cooperation      added a “A Note on Civility, Sexism, and
      Lasalle v. Vogel (2019) 36 Cal.App.5th        “is a custom, More honor’d in the           Persuasive Brief Writing” at the end of
127, a non-employment case, is one                  breach than the observance.” In this        its opinion to address a reply brief filed
of the most significant cases of 2019               case, we deal here with more evidence       in the case that contained “a highly
because it addresses a dire emergency               that our profession has come unmoored       inappropriate assessment of certain
in the legal profession – loss of civility.         from its honorable commitment to the        personal characteristics of the trial judge,
Lasalle is ostensibly a legal-malpractice           ideal expressed in section 583.130,         including her appearance.”
action in which the plaintiff, Angele               and – in keeping with what has become              The offending paragraph stated:
Lasalle, was suing her former attorney,             an unfortunate tradition in California      “Briganti ... claims that ... Chow defamed
Joanna T. Vogel. Thirty-six days after              appellate law – we urge a return to the     her by claiming she was ‘indicted’ for
Lasalle served Vogel with the summons               professionalism it represents.              criminal conduct, which is the remaining
and complaint, Lasalle’s lawyer sent             ((2019) 36 Cal.App.5th 127, 130                charge [in the case] after the [trial judge]
Vogel a letter and an email, informing           (footnotes and citations omitted).)            ... an attractive, hard-working, brilliant,
Vogel that her default would be entered                In Martinez v. O’Hara (2019) 32          young, politically well-connected judge
if no response was filed the very next           Cal.App.5th 853, the Court of Appeal           on a fast track for the California Supreme
day, a Friday. No response was filed. On         held that a gender-biased statement            Court or Federal Bench, ruled for Chow
Monday, Lasalle filed a request for entry        made in court papers violates ethical rules    granting his anti-SLAPP Motion to Strike
of default which was granted. A week             and may be reported to the state bar by        Respondent’s Second Cause of Action but
later, Vogel filed a motion to set aside         the court. Fernando Martinez appealed          against Chow denying his anti-SLAPP
the default. The Superior Court denied           the trial court’s denial of his motion         Motion against the First Cause of Action
Vogel’s set-aside motion and a default           for attorneys’ fees and costs following        .... With due respect, every so often, an
judgment was entered against Vogel for           an $8,080 jury verdict on his sexual           attractive, hard-working, brilliant, young,
$1 million. Vogel then appealed. The             harassment claim. Instead of using the         politically well-connected judge can err!
Court of Appeal determined that, because         Judicial Council notice of appeal form,        Let’s review the errors!” (Id. at p. 511.)
“[d]ignity, courtesy, and integrity were         his counsel submitted his own notice of               The Court of Appeal then explained
conspicuously lacking” in the litigation,        appeal which stated in pertinent part:         that gender bias and disrespect for the
reversal was appropriate.                        “The ruling’s succubustic adoption of the      judicial system was intolerable even if
      The most important part of the             defense position, and resulting validation     framed in a supposedly complimentary
terrific opinion written by Justice William      of the defendant’s pseudohermaphroditic        fashion:
W. Bedsworth is the Court of Appeal’s            misconduct, prompt one to entertain                     When questioned at oral
lengthy lament about the declining state         reverse peristalsis unto its four corners.”        argument, Chow’s counsel stated he
of the legal profession, excerpted here in       (Id. at p. 847.)                                   intended to compliment the trial judge.
part as follows:                                       Noting that Webster’s Third New              Nevertheless, we conclude the brief ’s
        Here is what Code of Civil               International Dictionary defined the               opening paragraph reflects gender bias
   Procedure section 583.130 says: “It is        term “succubus” as “1: a demon assuming            and disrespect for the judicial system.
   the policy of the state that a plaintiff      female form to have sexual intercourse                                ....
   shall proceed with reasonable diligence       with men in their sleep – compare                       Calling a woman judge – now
   in the prosecution of an action but that      incubus 2: demon, fiend 3: strumpet,               an Associate Justice of this court
   all parties shall cooperate in bringing       whore,” the Court of Appeal held that the          – “attractive,” as Chow does twice
   the action to trial or other disposition.”    “reference [in the notice of appeal] to the        at the outset of his reply brief, is
   That is not complicated language.             ruling of the female judicial officer, from        inappropriate because it is both
   No jury instruction defining any of its       which plaintiff appealed, as ‘succubustic’         irrelevant and sexist. This is true
   terms would be necessary if we were           constitutes a demonstration ‘by words or           whether intended as a compliment
   submitting it to a panel of non-lawyers.      conduct, bias, prejudice, or harassment            or not. Such comments would not
   The policy of the state is that the           based upon... gender’ and thus qualifies           likely have been made about a male
   parties to a lawsuit “shall cooperate.”       as reportable misconduct.” The Court of            judge . . . Objectifying or demeaning
   Period. Full stop.                            Appeal then commented: “We publish                 a member of the profession, especially
      Yet the principle the section dictates     this portion of the opinion to make the            when based on gender, race, sexual
   has somehow become the Marie Celeste          point that gender bias by an attorney                        See Friedman, Next Page
Andrew H. Friedman, continued

                                                                                                                  May 2020

   preference, gender identity, or other        protect “ordinary citizens who are sued by    I wouldn’t close the courthouse door
   such characteristics, is uncivil and         well-heeled special interests.” (See George   when a worker invokes the conversion
   unacceptable. Moreover, the comments         W. Pring & Penelope Canan, SLAPPs:            tort to recover earned but unpaid
   in the brief demean the serious              Getting Sued For Speaking Out, (Temple        wages. In California, unpaid wages are
   business of this court. We review            Univ. Press 1996) at pp. 1-2, 196 quoting     the employee’s property once they are
   judgments and judicial rulings, not          Deukmejian Vetoes Limits on SLAPP Suits,      earned and payable… Which is why an
   physical or other supposed personal          San Francisco Daily Journal, Sept. 27,        action for unpaid wages is not, as the
   characteristics of superior court judges.    1990, at p. 8 (emphasis added).)              majority suggests, merely an “action[ ] for
(Ibid.)                                               Unfortunately, but not unexpectedly,    a particular amount of money owed in
     These three cases should serve as          deep-pocketed corporations and other          exchange for contractual performance.”
the impetus not only for all attorneys          economic powerhouses have attempted           The doctrinal basis for invoking
to double-down on their efforts to be           to corrupt the anti-SLAPP statute and         conversion here is as solid as California’s
professional, civil, and courteous in           turn what was supposed to be the “cure”       longstanding concern about wage
their dealings with opposing counsel            into a “disease,” to be used by those         theft. Indeed, nothing in the legislative
and to refrain from bias in all aspects         powerhouses against ordinary citizens         scheme or public policy more generally
of the practice of law, but also for law        (consumers and employees) in an effort        justifies limiting the tort in the manner
schools and the bar to re-emphasize the         to silence them. (See Nam v. Regents of the   the majority proposes. So with respect, I
importance of civility and for Superior         Univ. of Cal. (2016) 1 Cal.App.5th 1176,      dissent.”
Courts to take swift and vigorous action        1179 [“The cure has become the disease              In Goonewardene v. ADP, LLC (2019)
against incivility.                             – SLAPP motions are now just the latest       6 Cal.5th 817, the California Supreme
                                                form of abusive litigation”], quoting         Court held that a payroll company could
A quartet of very disappointing                 Navellier v. Sletten (2002) 29 Cal.4th 82,    not be liable to an employee of one of
decisions and a single wonderful                96 [dissenting opinion of Brown, J.].)        its clients for negligence or breach of
opinion                                               Sadly, in Wilson, the California        contract holding that: (1) ADP owed
      Typically, the California Supreme         Supreme Court turned the intent of            no common law duty of care to Altour’s
Court issues pro-employee decisions. This       the anti-SLAPP statute upside down to         employees and thus could not be liable
past year, however, save one pro-employee       protect a behemoth media corporation          for alleged negligence; and (2) Altour’s
exception, saw the Court repeatedly side        from an ordinary citizen merely               employees were not parties to nor third-
with big business over employees.               attempting to exercise his constitutionally   party beneficiaries of the contract
      In Wilson v. Cable News Network, Inc.     protected petitioning right of suing          between Altour and ADP, and thus could
(2019) 7 Cal.5th 871, the California            that corporation for discrimination.          not be liable for breach of contract.
Supreme Court was presented with                The Supreme Court held that CNN                     In ZB, N.A. v. Superior Court (2019)
the opportunity to decide whether the           could use the anti-SLAPP act against a        8 Cal.5th 175, the California Supreme
State’s anti-SLAPP statute could be used        discrimination claim because it found         Court held that private litigants may not
to screen claims alleging discriminatory        that the First Amendment protects a news      recover unpaid wages under the Labor
or retaliatory employment actions.              organization’s right to choose who reports    Code Private Attorneys General Act
California’s anti-SLAPP statute was,            the news on its behalf. Discrimination and    (“PAGA”). Unfortunately, the Supreme
of course, enacted at the strong and            retaliation cases, which involve issues of    Court held that “[d]eeming … unpaid
repeated urging of then-California              intent and motive, are difficult enough       wages … to be a civil penalty … cannot be
State Senator Bill Lockyer (Chair of the        to prove even with full and intensive         squared with the understanding of that
California Senate Judiciary Committee),         discovery. To subject those cases to the      term under the PAGA.”
“out of concern over ‘a disturbing              heighted scrutiny erected by the anti-              Finally, in the one pro-employee
increase’ in civil suits ‘aimed at preventing   SLAPP act is to effectively provide media     exception to its slate of unfavorable
citizens from exercising their political        corporations with a free pass to engage in    pro-business decisions, the California
rights or punishing those who have done         unlawful discrimination and retaliation.      Supreme Court held, in Frlekin v. Apple
so.’” (Wilson v. Cable News Network, Inc.             Next, in Voris v. Lampert (2019) 7      Inc. (2020) 8 Cal.5th 1038, that the time
(2016) 6 Cal.App.5th 822, 830 reversed,         Cal.5th 1141, the California Supreme          during which employers required their
in part, by Wilson v. Cable News Network,       Court held that employees cannot sue          employees to spend on the employer’s
Inc. (2019) 7 Cal.5th 871 quoting Simpson       employers for the tort of conversion.         premises waiting for, and undergoing,
Strong-Tie Co., Inc. v. Gore (2010) 49          Justice Mariano-Florentino Cuéllar            mandatory exit searches was employer-
Cal.4th 12, 21 (emphasis added).)               (joined by Justice Goodwin H. Liu) issued     controlled activity, and therefore that
      Senator Lockyer commented that            a cogent dissent summarized by a single       time was compensable as “hours worked”
the anti-SLAPP legislation was needed to        paragraph: “Unlike the majority,                           See Friedman, Next Page
Andrew H. Friedman, continued

                                                                                                                   May 2020

within meaning of California’s wage and         former Deputy District Attorney, sued the          In Siri v. Sutter Home Winery, Inc.
hour laws.                                      County of Riverside for retaliating against   (2019) 31 Cal.App.5th 598, the court held
                                                him in violation of Labor Code section        that an accountant could proceed with
Unlike President Trump and his                  1102.5 because he repeatedly complained       a whistleblower lawsuit even though the
Senate enablers, the California Courts          to his supervisors that the County needed     documents underlying her claims were
of Appeal still protect whistleblowers          to cease the prosecution of a man for         privileged. Siri repeatedly complained to
     In the age of Trump, the importance        whom there was not probable cause to          her supervisors that the company was not
of whistleblowers cannot be overstated as       continue prosecuting (among other things,     complying with California sales and use
both federal and state governments (and         DNA evidence exculpated the man; and          tax laws. She alleged that the company
employers) need the checks and balances         another person admitted, in recorded          retaliated against her by scrutinizing
that whistleblowers represent to ensure         phone calls, to being the actual killer).     her, taking away job duties, giving an
that illegal activities are brought to light.        Ross based his recommendation on         office promised to her to someone else,
     In Hawkins v. City of Los Angeles          his belief continued prosecution would        ostracizing her, and ultimately firing her.
(2019) 40 Cal.App.5th 384, two                  violate the defendant’s due process                Siri sued, alleging violations of
government employees – Todd Hawkins             rights as well as a prosecutor’s ethical      Labor Code section 1102.5 and wrongful
and Hyung Kim – blew the whistle                obligations under state law. The trial        termination in violation of public policy.
on an illegal practice allegedly taking         court granted the County’s motion for         The company moved for summary
place within the City of Los Angeles’           summary judgment on the ground that           judgment claiming that Siri would need
Department of Transportation (“DOT”).           Ross failed to allege that he complained      to rely on the company’s confidential
Hawkins and Kim were DOT hearing                about a violation of the law. The Court of    tax returns to prove her claim, and that
examiners. They reviewed parking                Appeal reversed, explaining:                  those were not discoverable because of
violations and made determinations as to             If credited by a trier of fact, the      the taxpayer privilege. The trial court
whether the individuals contesting their        evidence shows Ross engaged in protected      granted summary judgment and Siri
violations were liable.                         activity because he disclosed information     appealed. The Court of Appeal reversed.
     Both men complained internally             to a governmental or law enforcement          It held that the company failed to show
that their supervisor was pressuring them       agency and to people with authority           that Siri could not prove her case without
to change decisions from “not liable” to        over him which he reasonably believed         using the actual tax returns: “Prosecution
“liable” – in essence cheating individuals      disclosed a violation of, or noncompliance    of plaintiff ’s claim does not require the
out of the refunds of the fines they had        with federal and state law applicable to      forced production of defendant’s returns
paid. Both men were then fired. They sued       criminal prosecutions and prosecutors.        or of the content of its returns. Plaintiff ’s
for whistleblower retaliation under Labor       Although Ross did not expressly state         right to recover turns only on whether she
Code section 1102.5 and violations of           in his disclosures that he believed the       was discharged for communicating her
the Bane Act. A jury found in their favor,      County was violating or not complying         reasonable belief that defendant was not
awarding Hawkins $238,531 and Kim               with a specific state or federal law, Labor   properly reporting its use tax obligation.”
$188,631 in damages. The trial court then       Code section 1102.5, subdivision (b), does    (Id. at p. 605.) Thus, “Plaintiff is entitled
assessed a $20,000 PAGA penalty, and            not require such an express statement. It     to attempt to prove her claim without
subsequently awarded them $1,054,286.88         requires only that an employee disclose       disclosing any information that is subject
in attorneys’ fees. The City appealed.          information and that the employee             to the privilege.” (Id. at p. 606.)
     The Court of Appeal affirmed               reasonably believe the information                 In Gupta v. Trustees of the Cal. State
as to the Labor Code section 1102.5             discloses unlawful activity. (Lab. Code,      Univ. (2019) 40 Cal.App.5th 510, the
claim. It further affirmed the award of         § 1102.5, subd. (b).)                         Court of Appeal affirmed a $378,421 jury
attorney’s fees, which were warranted                Moreover, the particular information     verdict in favor of a professor alleging
under PAGA and under Code of Civil              disclosed in this case, that evidence         that she was denied tenure and fired
Procedure section 1021.5. As to the latter,     developed during Ross’s handling of the       because she and several other women
the court determined that Hawkins and           case undermined the district attorney’s       of color in the University’s School of
Kim had conferred a significant benefit         office’s basis for continuing to prosecute    Social Work complained about alleged
on the public through the litigation, as        the case, should have raised the same         “abuse of power and authority, excessive
the City had been denying the public            constitutional, statutory, and ethical        micromanagement, bullying, and the
of independent, impartial hearings              concerns to Ross’s superiors as they did      creation of a hostile environment.” (Id. at
and instead undermined the process to           to Ross because Ross’s superiors were also    p. 513.) In order to prove her retaliation
generate revenue.                               prosecutors subject to the same legal and     claim, Professor Gupta compared herself
     In Ross v. County of Riverside (2019)      ethical constraints as Ross.” (Id. at pp.     to another professor who had not
36 Cal.App.5th 580, Christopher Ross, a         592-93.)                                                    See Friedman, Next Page
Andrew H. Friedman, continued

                                                                                                                   May 2020

complained but had been granted tenure.         gives plaintiffs scant incentive to skirt     may bring a common-law claim for
The University appealed, arguing that           the instruction. Defendants, after all,       discrimination against an employer. In
Professor Gupta should not have been            have good reason promptly to raise            other words, the plaintiff, an African
allowed to use the comparator evidence          an objection that may rid them of             American was not allowed to sue a
because she failed to show that she was         the lawsuit filed against them. A Title       potential employer on a claim for failure
“clearly superior” to the “comparator           VII complainant would be foolhardy            to hire due to his race in violation of
professor.” The Court of Appeal disagreed,      consciously to take the risk that the         public policy; rather, he was restricted to
holding that a plaintiff “is not required to    employer would forgo a potentially            bringing such a claim under FEHA.
show his or her qualifications are clearly      dispositive defense.” (Id. at pp. 1851-52.)
superior in order to defeat summary                  Ortiz v. Dameron Hosp. Ass’n (2019) 37
                                                                                              Victories for employees in wage-and-
judgment.” (Id. at p. 521.)                     Cal.App.5th 568, stands for two important     hour cases
     One of the few exceptions to the           propositions. First, that “[d]iscrimination        Many employers seek to take
2019 triumphs of whistleblowers and             on the basis of an employee’s foreign         advantage of their employees by, among
those alleging retaliation occurred in Doe      accent is a sufficient basis for finding      other things, making them work without
v. Department of Corrections & Rehabilitation   national origin discrimination.” (Id. at      pay, refusing to pay them legally required
(2019) 43 Cal.App.5th 721. In Doe, the          p. 580.) Second, that an employee can         overtime, or otherwise simply not
Court of Appeal affirmed summary                proceed on a constructive discharge claim     complying with the wage and hour laws
judgment in favor of the Department             by showing that a “supervisory employee,      that are designed to protect employees.
of Corrections holding that the plaintiff       intentionally created the working             The courts issued a number of significant
failed to demonstrate that he had been          conditions at issue in th[e] case, and that   victories for employees in these cases.
subjected to an actionable adverse              a reasonable person faced with those               In Rizo v. Yovino (9th Cir. 2020) 950
employment action where all he alleged          conditions would have felt compelled to       F.3d 1217, an en banc panel of the Ninth
was that he was retaliated against by his       resign.” (Id. at p. 579.)                     Circuit addressed the question of whether
employer criticizing his work during an              In Glynn v. Superior Court (2019)        an applicant’s prior rate of pay is a “factor
interrogation-like meeting, ordering a          42 Cal.App.5th 47, the Court of Appeal        other than sex” as defined in the Fair
wellness check on him when he was out           held that an employer that claims that        Labor Standards Act, 29 U.S.C. section
sick, suspecting him of bringing a cell         it “mistakenly” fired an employee on          206(d)(1)(iv), that allows an employer to
phone into work, and assigning him to           disability leave may nonetheless be liable    pay her less than male employees who
be the primary crisis person on the same        for discrimination.                           perform the same work. The Ninth Circuit
day as a union meeting. The Court of                 In Jimenez v. U.S. Continental Mktg.,    held that because “[t]he express purpose of
Appeal held that the alleged behavior fell      Inc. (2019) 41 Cal.App.5th 189, the           the [FLSA] was to eradicate the practice of
squarely into the nonactionable category        Court of Appeal held that an employer         paying women less simply because they are
of relatively minor conduct that cannot         may have FEHA liability if it exercised       women” “[a]llowing employers to escape
properly be viewed as materially affecting      direction/control over a temporary worker     liability by relying on employees’ prior pay
the terms, conditions, or privileges of         – “where a FEHA claimant presents             would defeat the purpose of the Act and
employment.                                     substantial evidence of an employment         perpetuate the very discrimination the
                                                relationship that is rebutted only by         EPA aims to eliminate” and, accordingly,
A slew of terrific discrimination and           direction and control evidence outside the    “an employee’s prior pay cannot serve as
wrongful-termination opinions                   bounds of the contractual context (such       an affirmative defense to a prima facie
      In Fort Bend County, Texas v. Davis       as in a temporary-staffing situation          showing of an EPA violation.”
(2019) 139 S.Ct. 1843, the Supreme              where hiring, payment, benefits                    In Ridgeway v. Walmart Inc. (9th Cir.
Court held that the filing of an                and time-tracking are handled by a            2020) 946 F.3d 1066, the Ninth Circuit
EEOC charge is not a “jurisdictional”           temporary-staffing agency), the claimant      affirmed a $54.6 million verdict in favor
requirement to initiating a Title VII           has demonstrated an employment                of a class of Wal-Mart truckers who
lawsuit. Although this decision technically     relationship for FEHA purposes.” (Id. at      alleged that they were illegally not paid for
allows one to bypass that pesky EEOC            p. 201.)                                      layovers, rest breaks and inspections. The
filing requirement and proceed directly              Of course, there were some               district court determined and the Ninth
to court, such a decision would be highly       exceptions to the pro-employee                Circuit affirmed that the time drivers
foolish, as Justice Ginsburg warns in her       decisions. In Williams v. Sacramento River    spent on layovers is compensable if Wal-
decision, because the defendant could           Cats Baseball Club, LLC (2019) 40 Cal.        Mart exercised control over the drivers
simply file a motion to discuss on that         App.5th 280, for example, the Court           during those breaks – “Wal-Mart’s layover
basis: “And recognizing that the charge-        of Appeal held that only an employee          policy imposed constraints on employee
filing requirement is nonjurisdictional         (as distinguished from an applicant)                        See Friedman, Next Page
Andrew H. Friedman, continued

                                                                                                                    May 2020

movement such that employees could not           work “reporting time” pay as required by       meaning to Countrywide employees.”
travel freely and avail themselves of the        California’s IWC Wage Orders.                  (But see, Savea v. YRC Inc. (2019) 34
full privileges of a break.” (Id. at p. 1080.)         In Furry v. East Bay Pub’g, LLC (2019)   Cal.App.5th 173 [employer did not
      In order to pass along the costs of        30 Cal.App.5th 1072, the Court of Appeal       violate Labor Code section 226(a) by
doing business to its employees, some            addressed a common situation – an              using its actual, recorded fictitious
employers force their employees to               employer that fails to keep track of its       business name; employer had valid
perform work, without compensation,              employees’ overtime and then argues,           fictitious business name statement and
before they clock in or after they clock         when sued for that uncompensated               renewal recorded in relevant counties].)
out. These employers justify their failure       time, that the employee should not
to compensate their employees for                be able to recover anything for the
                                                                                                Pro-employee decisions involving
performing this work by citing the federal       overtime work performed because the            procedural issues
“de minimis doctrine,” which precludes           employee’s testimony about the time                 In Scott v. City of San Diego (2019)
the recovery of otherwise compensable            worked is “uncertain, speculative, vague       38 Cal.App.5th 228, the Court of
amounts of time that the employer deems          and unclear.” In Furry, the trial court        Appeal held that, in a FEHA case, a
to be small, irregular or administratively       bought just such an argument and found         prevailing-party employer could not
difficult to record.                             in favor of the employer because “even a       recover its costs despite having made a
      In Rodriguez v. Nike Retail Servs.         rough approximation of said hours would        successful CCP section 998 offer. Rather,
(9th Cir. 2019) 928 F.3d 810, Nike               be pure guess work and unreasonable            the court explained that, because the
required its retail employees to undergo         speculation on the court’s part.” (Id. at      FEHA contains its own discretionary
“off the clock” exit inspections every           p. 1078.) The Court of Appeal reversed         costs provision, a prevailing defendant
time they leave the store. One of                the judgment as to the overtime claims,        in a FEHA case must establish that
Nike’s employees, Isaac Rodriguez,               finding that because the employer failed       the plaintiff ’s action was frivolous,
filed a class action on behalf of a class        to keep proper records, “the imprecise         unreasonable, or without foundation.
of similarly situated employees who              nature of Furry’s testimony was not a bar           In Mancini & Assocs. v. Schwetz (2019)
went through these exit inspections –            to relief.” (Ibid.)                            39 Cal.App.5th 656, the Court of Appeal
which usually lasted between one and                   For many years, some employers           succinctly described the case as follows:
two minutes or less per employee.                made it difficult for employees to sue         “An attorney successfully prosecutes
The district court dismissed the case            them for wage-and-hour violation by            an action resulting in a substantial jury
based upon the federal de minimis                failing to provide employees with their        verdict in favor of his client. The retainer
doctrine. On appeal, the Ninth Circuit           legal names and then, when sued, arguing       agreement between the attorney and his
reversed and reinstated the lawsuit due          that the employees’ lawsuits should            client provides that the attorney receive
to the subsequently issued California            be dismissed because the employees             a percentage of the recovery and costs
Supreme Court opinion in Troester v.             had failed to sue the correct entity. In       should his client prevail. Thereafter,
Starbucks Corp. (2018) 5 Cal.5th 829. In         response to this situation, California         without the attorney’s knowledge or
Troester, the California Supreme Court           enacted Labor Code section 226(a), which       consent, the client and the defendant
rejected the application of the federal          required employers to, among other             prepare a document releasing the
de minimis doctrine to wage and hour             things, list the “name of the legal entity     defendant from the pending judgment,
claims brought under California law.             that is the employer” on employee wage         including attorney fees and costs. Does
      In Ward v. Tilly’s, Inc. (2019) 31         statements.                                    this release preclude the attorney from
Cal.App.5th 1167, the courts struck a                  Notwithstanding this clear and easy-     pursuing his costs and fees from the
blow for employees who are placed “on            to-follow directive, some employers fail       defendant? Of course not.” (Id. at p. 657.)
call,” i.e., required to both leave their day    to comply. So, for example, in Noori v.             In Wu v. O’Gara Coach Co. (2019)
open in case they get called into work and       Countrywide Payroll & HR Solutions, Inc.       38 Cal.App.5th 1069, the Court of
check with the employer several hours            (2019) 43 Cal.App.5th 957, the defendant       Appeal reversed the trial court’s decision
before their shift is scheduled to begin         employer was sued for using an acronym         to disqualify the plaintiff employee’s
to see if they are told to come into work        for its unregistered fictitious business       attorney. The trial court found that the
(in which case they are paid for the hours       name – “CSSG” – on its employee wage           plaintiff ’s attorney, who had previously
they work) or are told that they will not        statements. The trial court sustained          served as the former president and
be needed at work that day (in which             Countrywide’s demurrer, but the Court of       chief operating officer of the defendant
case they receive no compensation).              Appeal reversed, in part, holding “CSSG        employer, had significant responsibility
The Court of Appeal held that, in such           is not Countrywide’s registered name,          in the formulation and implementation
situations, employers are required to pay        nor is it a minor truncation. CSSG is a        of the company’s anti-discrimination and
the employees who are not called into            construct… which may or may not have                        See Friedman, Next Page
Andrew H. Friedman, continued

                                                                                                                May 2020

anti-harassment policies and that it was      Court of Appeal held that an employee’s      by the parties noting the settlement and
more likely than not that in those roles      lawyer was improperly disqualified after     expressly requesting that the court retain
he consulted with outside counsel for         contacting a “me-too” co-employee            jurisdiction to enforce the settlement.
the employer. In addition, the trial court    witness: “We therefore hold that where a          In Monster Energy Co. v. Schechter
ruled that it appeared highly probable        plaintiff-employee claiming harassment       (2019) 7 Cal.5th 781, the California
that the plaintiff ’s attorney would be an    and/or a hostile work environment seeks      Supreme Court held that the lawyers who
important percipient witness at trial, not    to rely on evidence of similar misconduct    approved a settlement agreement as to
only on the issue of the promulgation and     provided by another alleged employee-        “form and content” may be bound by the
enforcement of the policies at issue in the   victim, ex parte communication with that     agreement’s confidentiality provisions.
lawsuit, but also as to whether plaintiff     second employee does not concern an act
employee’s complaints were made known         or omission of such person in connection           Andrew H. Friedman is a partner with
to the plaintiff ’s attorney and what         with the matter which may be binding         Helmer Friedman LLP in Beverly Hills. He
actions, if any, plaintiff ’s attorney took   upon or imputed to the organization for      received his B.A. from Vanderbilt University
in response to those complaints.              purposes of civil or criminal liability.”    and his J.D. from Cornell Law School, where
     The Court of Appeal reversed,            (Id. at p. 209.)                             he was an Editor of the Cornell Law Review.
finding that the employer failed to                 In Mesa RHF Partners, L.P. v. City     Mr. Friedman clerked for the Honorable
present evidence that the plaintiff ’s        of Los Angeles, (2019) 33 Cal.App.5th        Judge John T. Nixon (U.S. District Court
attorney possessed confidential attorney-     913, the Court of Appeal explained           for the Middle District of Tennessee). Mr.
client privileged information material to     that in order to ensure that a trial court   Friedman represents individuals and groups of
the dispute, that the plaintiff employee      is able to retain jurisdiction under         individuals in employment law and consumer-
gave informed written consent to his          CCP 664.6, the parties must either: (1)      rights cases. Mr. Friedman is the author of
attorney being called as a witness and        file a stipulation and proposed order        Litigating Employment Discrimination Cases
that the attorney’s firm (not the attorney    signed by counsel that attaches a copy       (James Publishing 2005-2019). He would
himself) would represent the plaintiff        of the settlement agreement signed by        like to thank Helmer Friedman LLP attorney
employee at trial.                            the parties with an express request for      Taylor Markey for her invaluable assistance in
     In Doe v. Super. Ct. of San Diego        retention of jurisdiction, or (2) file a     proofing and otherwise editing this article. Y
County (2019) 36 Cal.App.5th 199, the         stipulation and proposed order signed
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