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3 Lawsuits That Are Changing the California Labor Law Landscape

Employment litigation has risen to an all-time high, with nearly 100,000 claims filed in 2010, according to the EEOC. Incredibly, this number is up 31% from 4 years ago! A constant stream of new court cases and judgments has changed the employment landscape, making it difficult for employers to stay ahead. Especially in California, labor laws are evolving faster than federal law, adding to the complexity of employment compliance.

Employment and labor litigation in California during the first half of 2011 resulted in a number of important decisions that directly affect the relationship between employers and their employees in the state. Many of these cases have already been decided by the California Supreme Court, while others are still pending.

Below is a brief overview of the three key cases, and the important “takeaways” for employers from each.

Case 1

Summary: The plaintiff, a senior Google executive, claims he was discriminated against because of his age in a notoriously “young” corporate culture. To support his argument, he relies on various comments from his superiors and colleagues that his ideas are “outdated” or “too outdated to be relevant”, that he is not a “cultural fit”, that he is an “old man” and “Antique.” Google argued that none of the remarks had anything to do with any hiring decision and should be dismissed as frivolous “chatter.”

The California Supreme Court rejected the argument that “casual remarks” made by nonmanagers or supervisors outside of disciplinary proceedings should not be taken seriously in court. Rather, such “scrambles” can and should be considered in the context of evidence and used to reach a final decision.

Tip: All managers should be aware of workplace conversations, even casual conversations between employees, and proactively eliminate derogatory or discriminatory remarks.

Case #2

Summary: The employer’s business is located in California, but has employees working out of state. Because of California’s different overtime laws, employers pay out-of-state employees based on their state of residence rather than California’s overtime rules. The California Supreme Court is currently reviewing the case to determine whether the California Labor Code applies to overtime for out-of-state workers working in California for a California employer.

Takeaway: While the case is still pending in the Supreme Court, employers should carefully review all state labor law guidelines.

Case #3

Summary: The Equal Employment Opportunity Commission has sued a California airport services company based on allegations by a male employee that he suffered from a hostile work environment as a result of sexual harassment by a female co-worker. California’s Ninth Circuit Court of Appeals struck down summary judgment against the employer, emphasizing that Title VII of the Civil Rights Act gives men the same rights as women to be protected from abusive work conditions. The California Supreme Court ultimately ruled in favor of the male plaintiffs.

Takeaway: If a male employee claims harassment, don’t just tell him to “be a man” or “get over it.” Take claims seriously and investigate properly.

In summary

Most work-related conduct by employers toward employees is not intentionally bigotry, malicious, or discriminatory in nature. However, the complexities of California labor law require employers to take extra care when hiring employees and making hiring decisions. In many cases, these actions can and will be brought against them in employment litigation. As a reminder, California labor law differs from federal law in many ways, so consult legal counsel before making any questionable employment decisions or actions.

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