Current state of mandatory arbitration agreements in the employment context in California

by Adam Treiger | Apr 19, 2023 | Labor, Legal

One Minute Update: In 2019, California passed AB51, prohibiting employers from requiring job applicants or employees to sign a mandatory arbitration agreement as a condition of employment.  AB51 was quickly enjoined by a federal trial court, and, in February 2023, the federal appeals court struck down AB51 as violative of the Federal Arbitration Act.  California still has some avenues left for further appeal (to the full Ninth Circuit or to the U.S. Supreme Court), but it seems unlikely that this recent decision would be overturned if California did so.  Thus, California employers may continue to require mandatory arbitration agreements of its employees if they so desire, at least for now.

Also, in June 2022, the U.S. Supreme Court held in Viking River that individual PAGA claims could be compelled to arbitration if the plaintiff-employee had signed an arbitration agreement with the employer.  The court further held that PAGA plaintiff who had to arbitrate such plaintiff’s individual claims, and who waived arbitration of representative claims, did not have standing to litigate the representative part of the PAGA claims in court after the arbitration of the plaintiff’s individual claims was completed.  However, in February 2023, a California court of appeal disagreed with the U.S. Supreme Court, in Galarsa v. Dolgen California LLC , and held that the plaintiff’s representative PAGA claims could proceed in court after the arbitration of the plaintiff’s individual claims was completed.  This issue will ultimately be decided by the California Supreme Court in the pending case of Adolph v. Uber Technologies, Inc.

Sick Leave – as of Jan 1, 2023

by Adam Treiger | Feb 16, 2023 | Labor, Legal

One Minute Update: Effective as of January 1, 2023, AB 1041 amended California’s Paid Sick Leave law to allow an employee to care for a “designated person.”  This term is defined differently than it is in other areas of the law (e.g., in the California Family Rights Act), and means “a person identified by the employee at the time the employee requests paid sick leave.”  The designated person need not be related in any way, nor must the designated person by in a family-equivalent relationship.  An Employer may amend its paid sick leave policy to limit employees to one designated person per 12-month period, if the Employer so chooses.