Compliance Stuff

The Supreme Court of California is set to decide whether the Federal Arbitration Act (FAA) preempts a California statute that requires employers to forfeit the right to arbitrate disputes with employees if arbitration fees are not paid in a timely manner. The case could answer significant questions about the extent to which the FAA may preempt California’s laws regulating employment arbitration. Quick Hits The Supreme Court of California is poised to determine whether the Federal Arbitration Act preempts a state law requiring timely payment of arbitration fees, which could significantly affect employment arbitration practices. The case arises from a dispute where a former employee sought to void arbitration after the employer paid arbitration fees after a thirty-day deadline imposed by a California statute. The outcome will clarify the interplay between federal arbitration standards and California’s efforts to regulate employment arbitration agreements and arbitration processes. The C...

  The California Supreme Court has ruled that public employers are not subject to civil penalties under the state’s Private Attorneys General Act of 2004 (PAGA) . In a pivotal decision, the court held that public entities, including public health authorities, are exempt from certain state labor rules on meal and rest breaks and, more broadly, from PAGA penalties . This ruling underscores the legal distinctions between public and private employers under California law. This article explains what the ruling means for both public and private employers and gives four practical tips to stay compliant. What Happened? In  Stone v. Alameda Health System , health care workers at Alameda Health System (AHS), a public hospital authority created by Alameda County, filed a class action alleging wage and hour violations under the California Labor Code and seeking penalties under PAGA. Trial judge sided with the AHS.  At trial, the AHS argued it was a public entity not subject to liabil...