An employer in California is prohibited by law from retaliating against an employee who complains to his employer about what s/he believes to be illegal conduct on the part of the employer. California Labor Code Section 1102.5 provides, (a) An employer, or any person acting on behalf of the employer, shall not make, adopt, or enforce […]
Category: California
New California requirements for employment separation agreements
(A) It is an unlawful employment practice for an employer or former employer to include in any agreement related to an employee’s separation from employment any provision that prohibits the disclosure of information about unlawful acts in the workplace. (B) A nondisparagement or other contractual provision that restricts an employee’s ability to disclose information related to conditions […]
Economic Duress and Equitable Estoppel
13340 MDR LLC v. PREFERRED BANK, Cal: Court of Appeal, 2nd Appellate Dist., 5th Div. 2019 A claim of economic duress often arises when a party is attempting to avoid a contract modification or a settlement and release. (Rich & Whillock, Inc. v. Ashton Development, Inc. (1984) 157 Cal.App.3d 1154, 1158.) The party asserting duress need […]
Transfers to Defraud Creditors
Under some circumstances a creditor may sue to set aside a transfer of property by a debtor, where the transfer defrauds that creditor. (Civ.Code, § 3439 et seq., the Uniform Fraudulent Transfer Act.) A well-established principle of the law of fraudulent transfers is, “A transfer in fraud of creditors may be attacked only by one […]
Bereavement Leave
Assembly Bill No. 1949 CHAPTER 767 An act to amend Sections 12945.21 and 19859.3 of, and to add Section 12945.7 to, the Government Code, relating to employment. [ Approved by Governor September 29, 2022. Filed with Secretary of State September 29, 2022. ] AB 1949, Low. Employees: bereavement leave. Existing law, commonly known as the California Family Rights Act, which is a part of the California […]
Substantive unconscionability in the context of an arbitration agreement
TAMANAHA v. DroneBASE, INC., Cal: Court of Appeal, 2nd Appellate Dist., 3rd Div. 2022 We begin by reviewing general principles of unconscionability. “`One common formulation of unconscionability is that it refers to “`an absence of meaningful choice on the part of one of the parties together with contract terms which are unreasonably favorable to the […]
Employer’s duty to issue wage statements
Valdivia v. TICKET CLINIC, Cal: Court of Appeal, 2nd Appellate Dist., 3rd Div. 2022 Section 226, subdivision (a) states that an “employer, semimonthly or at the time of each payment of wages, shall furnish to his or her employee, either as a detachable part of the check, draft, or voucher paying the employee’s wages, or […]
Sex discrimination in the workplace
HIRAISHI v. DeLEON, Cal: Court of Appeal, 2nd Appellate Dist., 6th Div. 2022 The California Fair Employment and Housing Act (FEHA) prohibits a variety of conduct in the workplace, including gender discrimination and gender harassment. (See Gov. Code, § 12940, subds. (a) & (j)(1).) Discrimination focuses on “explicit changes in the `terms, conditions, or privileges […]
Fraud in the inducement to enter into a contract
“The elements of fraud are (a) a misrepresentation (false representation, concealment, or nondisclosure); (b) scienter or knowledge of its falsity; (c) intent to induce reliance; (d) justifiable reliance; and (e) resulting damage.” (Hinesley v. Oakshade Town Center (2005) 135 Cal.App.4th 289, 294.) “Fraud in the inducement is a subset of the tort of fraud.” (Ibid.) Fraud […]
Whistleblower retaliation
Erhart v. BOFI HOLDING, INC., Dist. Court, SD California 2022 Sarbanes-Oxley’s whistleblower retaliation provision provides a company may not “discharge, demote, suspend, threaten, harass, or in any other manner discriminate against an employee in the terms and conditions of employment because of” protected activity. 18 U.S.C. § 1514A(a). As the statute indicates, the retaliation that […]