Supreme Court of California Rules Employers Can’t Claim Ignorance on State Wage Violations
On August 21, 2025, the Supreme Court of California ruled that employers must demonstrate that they took reasonable steps to comply with minimum wage laws to mount a good-faith defense against liquidated damages. The decision in Iloff v. LaPaille overturned an earlier state appellate court decision. The Supreme Court of California also ruled, with respect to claims for paid sick leave, that there is no private right of action to recover administrative penalties. Quick Hits The Supreme Court of California recently determined that employers need to show they tried to understand and comply with the state minimum wage rules in order to avoid paying liquidated damages after a violation. What constitutes a reasonable attempt will vary depending on the type of employer and the context. Arguing that the employer was ignorant of the minimum wage law is not sufficient for a good-faith defense. For paid sick leave claims, there is no private right of action to recover administra...
