Lauren Teukolsky was recently quoted in a Bloomberg article about the increasing use by California employees of “headless” PAGA cases to avoid being forced to arbitrate their wage-and-hour claims. The Private Attorney Generals Act (PAGA) permits employees to act as deputies of the state and bring a suit on behalf of themselves and other aggrieved employees to enforce the Labor Code.  In 2022, the United State Supreme Court ruled that employers may not require employees to waive PAGA claims via a mandatory arbitration agreement.  But the Court also ruled that employers can require employees to split their “individual PAGA claim” from the claim on behalf of others, and to arbitrate the individual claim.

​A headless PAGA case is one in which the plaintiff disclaims all individual claims, including the individual PAGA claim, and files the lawsuit to seek PAGA penalties solely on behalf of other aggrieved employees.  This strategy was galvanized after the California Court of Appeals issued Balderas v. Fresh Start Harvesting in April 2024, holding that workers who disclaim their individual claims can still bring a group PAGA action on behalf of other aggrieved employees.  While Balderas was not about arbitration, several plaintiffs’ lawyers have seized on the holding of the case to file headless PAGA cases in an effort to stay out of arbitration. 

​As stated in the Bloomberg article, Ms. Teukolsky’s analysis of 20 post-Balderas orders reveals that the majority of trial courts are following Balderas and permitting PAGA plaintiffs who disclaim individual claims to avoid arbitration.  A small but significant minority are distinguishing Balderas and still requiring PAGA plaintiffs to arbitrate their “aggrieved employee” status.  The Bloomberg article quoted Ms. Teukolsky saying, “Given this split, I anticipate we will see more decisions from the Court of Appeals in the next year or two about whether a PAGA plaintiff can stay out of arbitration by disclaiming all individual claims.”

Ms. Teukolsky has represented workers for over two decades and her commentary on the latest developments in employment law is regularly featured by major publications such as Bloomberg Law, Law360, Law.com, and the Los Angeles Times. To read the article in its entirety, click here. If you believe you’ve been treated unlawfully in the workplace and want to get in touch with our office, click here.

​Lauren Teukolsky will speak at the California Employment Lawyer’s Association (CELA) Leadership Conservatory training on Thursday, November 7 at Loews Coronado Bay Resort. CELA is a state-wide organization made up of over 1,200 attorneys who represent employees in employment cases and class actions. Ms. Teukolsky will speak on a panel titled, “Differing Leadership Styles,” and will discuss the importance of self-awareness and authenticity in becoming an effective leader. She will be speaking alongside CELA leaders Hugo Gamez and Glicel Sumagaysay, both attorneys at their own respective law offices.
 
Ms. Teukolsky has worked to protect employees’ rights for over two decades and regularly speaks at conferences on employment law. She is a Fellow of the College of Labor and Employment Lawyers, and previously served as Co-Chair of CELA’s Wage & Hour Committee.  Her commentary on the latest developments in employment law is regularly featured by major publications such as Bloomberg Law, Law360, Law.com, and the Los Angeles Times.
 
To learn more about Ms. Teukolsky and her practice, click here. If you believe you’ve been treated unlawfully in the workplace and want to get in touch with our office, click here.

​Lauren Teukolsky was recently quoted in a Bloomberg Law article about the new PAGA reform package passed by the California Legislature in early July 2024. The package represents a compromise between businesses and labor groups that aims to strengthen worker protections while allowing employers to cure violations and face lower penalties. The reformed law, decades-long in the making, avoids a contentious ballot measure that would have repealed PAGA entirely if passed.

Several measures of the reform package benefit workers.  If a PAGA plaintiff recovers penalties for Labor Code violations, aggrieved employees get to keep 35% of the penalties, up from 25% under the previous law.  As before, the remainder of penalties are paid to the State.  Workers are also authorized to seek injunctive relief (i.e., a court order to require an employer to stop an unlawful practice), a remedy not authorized by the previous law. 

Other measures favor employers. Subject to limited exceptions, employees are now permitted to seek penalties only for Labor Code violations they have actually suffered.  Previously, an employee who suffered one type of violation could file a PAGA suit on behalf of other employees for any violation of the Labor Code.

A crucial aspect of the PAGA reform package is the early evaluation conference, theoretically aimed at reducing litigation length and costs. Now, large employers with more than 100 employees can request an early evaluation conference which halts ongoing litigation until a neutral third party assess the plaintiff’s claims, the company’s efforts to comply with the Labor Code, and plans to cure violations. Smaller employers may access a similar process through the Labor and Workforce Development Agency.  If employers can demonstrate they have cured the violations, PAGA penalties may be capped.

PAGA practitioners and courts will need to grapple with setting up early evaluation conferences in the months to come.  The reform package does not dictate how courts are supposed to implement the early evaluation program, leading PAGA practitioners like Ms. Teukolsky to wonder how courts with limited resources will implement such programs, especially in the face of recent budget cuts that have slashed court services. 

The Bloomberg article quoted Ms. Teukolsky saying,  “While courts that frequently handle PAGA lawsuits, like Los Angeles Superior Court, probably will establish high functioning evaluation programs, it’s less clear what will happen with smaller courts that don’t see as much of that kind of litigation.”   

Ms. Teukolsky has represented workers for over two decades and her commentary on the latest developments in employment law is regularly featured by major publications such as Bloomberg Law, Law360, Law.com, and the Los Angeles Times.

To read the article in its entirety, click here. If you believe you’ve been treated unlawfully in the workplace and want to get in touch with our office, click here.

AB 1228 took effect on April 1, 2024, meaning fast-food workers across California are now subject to a new $20 minimum wage. Many of the state’s more than half a million fast-food workers will see their wages raised as a result.

AB 1228 was signed into law last fall by Governor Gavin Newsom. Proponents of the bill believe the new play floor is necessary in light of changes to the fast-food industry’s workforce. Whereas in the past fast-food workers were often teenagers trying to earn spending money, nowadays fast-food workers are largely adults trying to support their families. Despite California’s $16 minimum wage, the second highest in the nation, many of these workers still find themselves in search of additional jobs to make ends meet.

Critics of the bill, many of whom are franchise owners, have complained that the law will force them to lay off staff and pass on their increased costs to customers. However, researchers have found that, as California doubled its minimum wage over the past decade, wages increased without employment falling.
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The new minimum wage increase will apply to restaurants offering limited or no table service and which are part of a national chain with at least 60 establishments nationwide, with some exemptions. The law also figures to increase the wages of those outside of the fast-food industry, as employers compete for employees that may now be attracted to the industry’s higher minimum wage. 

2023 was a big year for California’s state legislature. From crime and healthcare to housing and schools, California’s legislators passed a bevy of new laws, including many that will significantly impact workers. Though some of these laws won’t be effective for a few more months, many have already taken effect. We discuss the most significant ones below.

Crackdown Against Noncompete Agreements
California has long been a leader in the fight against noncompete agreements, which restrain worker mobility and suppress wages. With the passage of SB 699, however, the state has taken its fight to another level, making most noncompete agreements unenforceable “regardless of where and when the contract was signed” and “regardless of whether the contract was signed and the employment was maintained outside of California.”

In practice, this means that out-of-state companies intending to enforce noncompete agreements against employees or former employees seeking work in California will be unable to do so, barring some exceptions.

Unpaid Leave for Reproductive Losses
SB 848 allows California’s workers to take up to five days of unpaid leave following a “reproductive loss event.” The law defines such events as “the day or, for a multiple-day event, the final day of a failed adoption, failed surrogacy, miscarriage, stillbirth, or an unsuccessful assisted reproduction.” The law also prohibits employers from retaliating against employees for taking reproductive loss leave.

More Paid Sick Leave
Due to the passage of SB 616, California’s workers now have the right to accrue and use up to five days (or 40 hours) of paid sick leave. The state’s workers were previously guaranteed a minimum of three paid sick leave days.

Protections for Cannabis Users
AB 2188 was actually passed after the 2022 legislative session but did not take effect until this month. The law prohibits employers from discriminating against individuals on the basis of cannabis use “off the job and away from the workplace,” with some exceptions.

Similarly, a law from this past legislative session, SB 700, prohibits employers from requesting information from job applicants about their prior use of cannabis. The law also prohibits employers from using information obtained from an applicant’s criminal history about their prior cannabis use, with some exceptions. 

For more on the latest developments in employment law, visit our blog here. If you believe your employer may have violated workplace laws, click here to get in touch with our office. 

Last Saturday was the deadline for California Governor Gavin Newsom to either sign or veto the roughly 1,000 bills that made it to his desk. Below is a recap of some of the most notable employment bills that the Governor signed or vetoed.

Higher Minimum Wages
Governor Newsom signed a pair of bills, AB 1228 and SB 525, that set higher minimum wages for workers in the fast food and healthcare industries. Under AB 1228, fast-wood workers’ minimum wage will be bumped to $20 an hour in April. Hundreds of thousands of healthcare workers in the state will see their minimum wage eventually increased to $25 an hour under SB 525.

Employers Lose a Delay Tactic
SB 365 allows employment lawsuit proceedings to move forward, rather than pause, when defendants appeal orders denying a request to compel arbitration. Governor Newsom signed the bill, effectively undercutting a tactic that sometimes-allowed employers to delay cases for years at a time.

More Paid Sick Days
Starting next year, California’s workers will be entitled to at least five days of paid sick leave, up from the current minimum of three days, as a result of Governor Newsom signing  SB 616.

Family Caregiver bill Nixed
In a defeat for employees, the Governor vetoed AB 524, a bill that would have added “family caregiver status” to the list of protected characteristics that employers cannot consider when making employment decisions such as hiring and firing.

No Unemployment Benefits while on Strike
SB 799 would have allowed  workers to collect unemployment insurance benefits while on strike. Governor Newsom vetoed the bill, citing the multi-billion-dollar debt that California’s unemployment insurance program incurred to keep benefits flowing during the pandemic.
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To see what other important employment bills were signed and vetoed by the Governor, click here. 

Lauren Teukolsky was quoted in a Thursday Law360 article on California’s newest U.S. senator, Laphonza Butler. Butler was appointed by Governor Gavin Newsom and sworn in earlier this month to fill the seat of Dianne Feinstein, who passed away after representing California on Capitol Hill for over three decades. The Law 360 article discusses Senator Butler’s background, and her mixed experience regarding workers’ rights.

Butler’s greatest achievement for California’s workers came during her time as president of SEIU (Service Employees International Union) Local 2015, where she helped with the “fight for $15,” a movement that led to 2016 California legislation that eventually increased the state’s minimum wage to $15 an hour. Afterwards, however, Butler joined the private sector and worked for Uber, a company that has gone to great lengths to avoid having to classify its drivers as employees.

The corporate background has led to some concerns regarding Butler’s commitment to workers. In Law360’s article, Ms. Teukolsky expressed cautious optimism about Butler:

“’Her time working in corporate America was relatively brief, if you look at the entirety of her career,’ Teukolsky said. ‘She does seem to be progressive and have workers' rights at the forefront, and hopefully whatever time she spent working for Uber was an aberration or a blip.’”
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To read the Law360 article in its entirety, click here. To learn more about Lauren Teukolsky and Teukolsky Law, click here.

Thursday, September 14th marked the deadline for California’s two legislative bodies – the state assembly and state senate – to pass bills. Bills passed by both bodies will now head to Governor Gavin Newsom’s desk, where the governor will have one month to determine which bills to sign into law.

The employment bills Mr. Newsom will consider for approval run the gamut, from legislation on caregiver discrimination to bills increasing paid sick days. Below is a recap of the bills at the governor’s desk that figure to have the greatest impact on California’s workers if approved.

Family Caregiver Discrimination – AB 524 
AB 524 would amend the state’s Fair Employment and Housing Act (FEHA) by adding “family caregiver status” to the list of protected characteristics that employers cannot take into account when making employment decisions such as hiring and firing.

Consideration of this bill comes at a critical time. Caregivers are the fastest growing workplace identity group and may make up us much as 73% of the American workforce. More than 63 million Americans care for at least one child, and 40.4 million Americans provide unpaid care to someone aged 65 years or older. The pandemic’s aftermath and America’s rapidly aging population have only exacerbated the challenges faced by caregivers.

Arbitration Appeal Delays – SB 365
When trial courts find that a forced arbitration agreement is invalid, employers frequently use delay tactics, such as filing an appeal, that can effectively pause a case for years at a time. If signed into law, SB 365 would undercut such tactics and allow employment lawsuits to move forward when defendants file appeals involving a petition to compel arbitration. 

WARN Act Expansion – AB 1356 
California’s Worker Adjustment and Retraining Notification (WARN) Act protects employees by requiring employers to give a 60-day notice to affected employees before a plant closing or mass layoff. AB 1356 would expand the WARN Act’s protections by requiring employers to provide employees with 75 days of advance notice. It would also prohibit employers from requiring employees to waive their rights by signing onerous severance agreements with releases and non-disparagement provisions in exchange for the payment of back wages.  The bill was inspired by the massive layoffs at tech companies like Google and Meta, particularly Elon Musk’s alleged mishandling of layoffs at the company formerly known as Twitter.

Additional Paid Sick Days- SB 616
SB 616 would require California’s employers to provide workers with five days of paid sick leave instead of the current allotment of three. Increasing the number of paid sick will reduce the frequency at which workers, particularly low-income workers, are forced to make difficult decisions between foregoing pay and going to work sick. If signed into law, the bill is also expected to strengthen public health protections. According to the Washington Center for Equitable Growth, “paid sick leave guarantees are seen by many public health experts as one of the strongest tools in stopping the spread of infectious diseases.”

For a list of other employment bills heading to Mr. Newsom’s desk, click here. The governor will have until October 14th to sign bills from this year’s legislative session into law.

Lauren Teukolsky will speak on a Beverly Hills Bar Association (BHBA) webinar on August 22 on the future of California’s Private Attorneys General Act (PAGA) following the state’s highly anticipated Supreme Court ruling in Adolph v. Uber Technologies, Inc.. Chris Jalian, a Partner at Paul Hastings, LLP, will join Ms. Teukolsky on the webinar. Nazgole Hashemi, Co-Founder of LegalAxxis, Inc., will serve as moderator for the event.

The webinar will examine what the Adolph v. Uber ruling means for employees and employers, with Ms. Teukolsky representing the employees’ perspective and Mr. Jalian representing the employers’ perspective.  In the ruling, the Court held that California’s workers could continue to pursue PAGA labor claims on behalf of their coworkers even if their individual labor claims were forced into arbitration. Experts considered the ruling to be a big win for the state’s workers.

Ms. Teukolsky’s commentary on Adolph v. Uber was previously featured in several articles by Bloomberg Law and Law.com.

The BHBA’s Labor and Employment section will present the webinar. The section provides a forum for labor and employment attorneys and neutrals to network, share ideas, and learn about the latest issues and trends in the field.
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The webinar will take place on Tuesday, August 22 from 12:30 pm to 1:30 pm PT via ZOOM. To register, click here. 

Lauren Teukolsky was quoted by Bloomberg Law and Law.com in a pair of articles this week on the CA Supreme Court’s Monday decision in Adolph v. Uber Technologies, Inc.. In the highly anticipated ruling, the Court held that the state’s workers could continue to pursue representative PAGA labor claims even if their individual labor claims were forced into arbitration. The Court’s ruling is considered a huge win for California’s workers.

PAGA (Private Attorneys General Act) is a state law that authorizes employees to collect civil penalties for violations against themselves and their coworkers on behalf of California’s Labor Commissioner, which has struggled to manage a backlog of cases for the past several decades.

Arbitration is a private dispute resolution process that overwhelmingly favors employers and shields corporations from public scrutiny and accountability. Employers frequently require their employees to sign agreements stipulating that all claims made by them will be resolved in private arbitration as opposed to being litigated through the courts, a process that is public and more favorable to workers.

A ruling in Uber’s favor would have made it very difficult to bring PAGA cases forward – due to the prevalence of arbitration agreements – and would have seriously eroded workers’ ability to enforce the state’s labor laws.

Uber’s lawyers have indicated that the company is considering appealing the Court’s decision. According to analysis Ms. Teukolsky published on LinkedIn, the U.S. Supreme Court is unlikely to hear such an appeal, especially in light of its 2022 decision in Viking River Cruises, Inc. v. Moriana.  She said, “It's unlikely SCOTUS will hear a case from a state supreme court involving entirely state-law issues; there must a federal question involved.”

Ms. Teukolsky has represented workers for over two decades and her commentary on the latest developments in employment law is regularly featured by major publications such as Bloomberg Law, Law360, Law.com, and the Los Angeles Times.

To access the Bloomberg Law article in its entirety, click here. To access the Law.com article in its entirety, click here.