California Court of Appeals Reinforces Strict Limits on Arbitration Fee Payment Deadline

The California Court of Appeals recently revisited the issue of the draconian deadline for paying arbitration fees established by California Code of Civil Procedure section 1281.97.  In Suarez v. Superior Court of San Diego County, the new twist that prompted appellate court review was that the 30-day grace period to pay the arbitration fees ended on January 1, 2023.  Because January 1, 2023 was a holiday, the employer argued that the arbitration payment deadline was extended by statute under Code of Civil Procedure sections 12 and 1010.6.

More specifically, and among several ...

Trial Courts Do Not Have Authority to Dismiss PAGA Claims for Lack of Manageability

Until recently, California courts were split on whether Private Attorneys General Act (“PAGA”) claims could be dismissed for a lack of “manageability” – referring to the practicality of effectively conducting a trial on the issues.  Like class actions, PAGA actions generally purport to represent a significant number of an employer’s current and former employees.  However, there are important distinctions between class and PAGA actions, which caused California’s appellate courts to issue conflicting opinions on how PAGA cases should be adjudicated.  The ...

Happy Valentine’s Day! A Reminder that Employers Must Notify Employees of Void Non-Compete Clauses and Agreements by February 14, 2024

As part of a focused effort by the California Legislature to protect employees from unenforceable non-compete clauses and agreements and increase fair competition among employers in 2024, Assembly Bill 1076 enacted Business and Professions Code section 16600.1.

In addition to any other Valentine’s Day plans that employers may have, all employers that provided any agreement with an unlawful non-compete clause or otherwise executed an unlawful non-compete agreement with its employees who were employed after January 1, 2022 must provide written notice to each employee or ...

Posted in Legal Bites
FDA Identifies Priority Guidance Topics for Foods Program

On January 25, 2024, the U.S. Food and Drug Administration (“FDA”) announced a new website listing regulations that its Foods Program plans to publish by October 2024 and longer-term regulations it is prioritizing for publication at a later date.

FDA also updated the list of guidance topics that it is considering and expects to publish by the end of 2024. The following five topics have been added to the list of guidance documents the FDA expects to publish by the end of December 2024:

  • Notifying FDA of a Permanent Discontinuance in the Manufacture or an Interruption of the Manufacture ...
Courts surprisingly affirm insurance coverage to defend against economic loss

For parties facing class action lawsuits, where the class seeks to recover for economic losses, there may still be opportunities for insurance coverage. Thus, where economic losses arise out of the purchase of products that have the potential for causing bodily injury, insurance coverage, at least for purposes of the duty to defend, may well be available.

Two fairly recent cases take up this scenario and both affirm coverage, at least for purposes of the duty to defend. Coverage was affirmed even though the relief sought in the class action complaints was solely for damages occasioned ...

Stand Up and Be Counted! Employee Count Guidance for Statutes Without Express Guidelines

Many California state statutes are applied based on the number of persons employed by an employer employee count.  Unfortunately, there are a number of these laws, including statutes establishing employee leaves of absence requirements, that do not specify which employees must be counted to determine if the law applies to a particular employer.  A recent state guidance regarding the 2023 state pay transparency statute, which requires the inclusion of a pay scale in job postings by employers with at least 15 employees, but which law does not specify who must be included in the count ...

California Enacts Higher Minimum Wage for Health Care Workers

Commencing on June 1, 2024, Senate Bill 525 will raise the minimum wage for covered health care workers at covered health care facilities in California. A “covered health care facility” as further defined by various statutes, is:  a facility or other work site that is part of an integrated health care delivery system; a licensed general acute care hospital; a licensed acute psychiatric hospital; a special hospital; a licensed skilled nursing facility, if owned, operated, or controlled by a hospital or integrated health care delivery system; a patient’s home when health care ...

California Expands Requirements for Successor Grocery Employers

Effective January 1, 2024, California’s Assembly Bill 647 will expand recall rights for grocery workers when there is a change of control in a grocery establishment.  Prior to AB 647, existing law required an incumbent grocery employer to provide, within 15 days of execution of a transfer document, a list of eligible grocery workers. Successor grocery employers were then required to maintain a preferential hiring list of these eligible grocery workers and hire from that list for 90 days. This law did not apply to grocery stores that had ceased operations for 6 months or more before the ...

Is an Order Approving a Sale of Receivership Property Immediately Appealable?

Q: I am a defendant in a receivership, where the receiver has moved to sell my property. If the court approves the sale,
I want to appeal. My attorney says an order approving the sale cannot be directly appealed and I will have to wait until the end of the case, which could be years from now. Is this correct?

A: It depends on whether your case is in federal or state court. In the Fifth Circuit case SEC v. Barton, 2023 WL 4060191, the defendant appealed the district court’s order approving the receiver’s sale of the defendant’s home, for the purpose of recouping funds for defrauded ...

SB 428 Further Modifies Workplace Violence Restraining Order Law

As reported here, California recently took steps to provide employers additional tools to combat workplace violence, including requiring a written workplace violence prevention plan, by enacting Senate Bill 553.  Effective January 1, 2025, Senate Bill 428 makes further changes to existing procedures for workplace violence restraining orders, and creates limitations to prevent employers from using such orders to restrict labor-related speech and activities. These changes are codified as section 527.8 of the Code of Civil Procedure.

Employers in California may ask for a court ...

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