Can an Employee Be Protected for Reporting Misconduct the Employer Already Knew About?

A California Supreme Court decision clarified that whistleblower protections can still apply when an employee reports unlawful conduct directly to an employer who was already aware of the wrongdoing.

Case: People ex rel. Garcia-Brower v. Kolla’s, Inc. (Cal. 2023)

Court: Orange CountySuperior Court / Supreme Court of California

Case/Docket No.: 30-2017-00950004 / S269456

Can an Employee Be Protected for Reporting Misconduct the Employer Already Knew About?

A California Supreme Court decision clarified that whistleblower protections can still apply when an employee reports unlawful conduct directly to an employer who was already aware of the wrongdoing.

This case arose from a wage complaint by an employee working at an Orange County nightclub. The California Supreme Court explained that A.C.R. worked as a bartender for Kolla’s, Inc. from 2010 to 2014. On April 5, 2014, she complained to the owner that she had not been paid wages owed for her previous three shifts. According to the opinion, the employer responded by threatening to report her to immigration authorities, firing her, and telling her never to return to the club.

After that, A.C.R. filed a complaint with the Division of Labor Standards Enforcement, which investigated. The Labor Commissioner later sued Kolla’s and its owner for Labor Code violations, including retaliation under Labor Code section 1102.5(b). The Supreme Court noted that the employer did not participate in the litigation, so the courts accepted the Labor Commissioner’s factual presentation.

The Legal Problem That Caused the Case to Proceed to the California Supreme Court

The legal issue was not whether the conduct was troubling. It was whether A.C.R.’s complaint to the employer counted as a protected “disclosure” under section 1102.5(b). The trial court ruled that the Labor Commissioner had not stated a valid retaliation claim under that section because A.C.R. complained to her employer rather than to a government agency. The Court of Appeal recognized that the current version of section 1102.5(b) protects internal disclosures to an employer, but it still affirmed on the theory that no protected disclosure occurred because the employer already knew about the wage violation.

That interpretation turned the case into an important statewide question about whistleblower law. The Supreme Court granted review to resolve whether an employee’s report loses protection if it is made to the wrongdoer or to someone already aware of the unlawful conduct.

The Supreme Court’s Decision in Garcia-Brower v. Kolla’s, Inc.:

The California Supreme Court reversed. It held that a report of unlawful activity to an employer or agency that already knows about the violation can still qualify as a protected disclosure under Labor Code section 1102.5(b). The Court said the statute’s language, history, and purpose did not support the narrow interpretation used by the lower courts.

The Court explained that section 1102.5 was enacted to protect whistleblowers from retaliation and has since been broadened by the Legislature, including amendments that specifically expanded protection for disclosures to persons with authority over the employee or others who can investigate or correct violations. The Court also emphasized its prior recognition that section 1102.5(b) reflects a broad public policy favoring the reporting of unlawful workplace conduct without fear of retaliation.

In reaching its holding, the Court rejected the narrower view that “disclose” means only revealing something unknown to the recipient. It noted that this reasoning had been influenced by outdated federal whistleblower precedent and did not fit California’s statutory framework or legislative purpose. The Court expressly disapproved contrary case law to the extent it conflicted with this interpretation.

Why Does this Case Matter for California Labor Law Claims?

This case matters because it strengthens protections against retaliation for employees who speak up internally. A worker does not lose whistleblower protection just because the complaint is directed to the person or business already responsible for the misconduct. That is especially important in real workplaces, where the first complaint about unpaid wages, discrimination, safety problems, or other legal violations is often made to a supervisor, owner, or manager rather than to a government agency.

It also matters because the ruling prevents employers from using a technical reading of “disclosure” to escape liability for retaliation. After Kolla’s, an employer generally cannot argue that an internal complaint is unprotected merely because the employer already knew of the conduct being reported. That makes the case a strong precedent in whistleblower and retaliation litigation under Labor Code section 1102.5.

For present-day parties, Kolla’s is especially useful when an employee complained directly to management about wage theft, labor violations, or other unlawful conduct and then suffered discipline, termination, or threats afterward. It reinforces the reach of California’s whistleblower statute in exactly those settings.

FAQ About the Kolla’s Whistleblower Retaliation Case

Q: What was the main issue in People ex rel. Garcia-Brower v. Kolla’s, Inc.?

A: The main issue was whether an employee makes a protected disclosure under Labor Code section 1102.5(b) when reporting unlawful conduct to an employer who already knows about the misconduct.

Q: What did the employee complain about?

A: She complained that she had not been paid wages owed for three prior shifts of work.

Q: What retaliation did the Labor Commissioner allege occurred after the complaint?

A: The complaint alleged that the employer fired the employee, threatened to report her to immigration authorities, and told her never to return to the nightclub.

Q: What did the lower courts decide before the case reached the California Supreme Court?

A: The lower courts concluded that the section 1102.5(b) claim failed because the employee’s report was made to the employer and did not reveal something new to a recipient unaware of the misconduct.

Q: What did the California Supreme Court hold?

A: The Court held that a report of unlawful activity is still a protected disclosure under section 1102.5(b) even if the employer or agency already knew about the violation.

Q: Why is this case important for whistleblower law in California?

A: It broadens and clarifies protection for employees who complain internally, making it harder for employers to argue that internal reports are unprotected simply because management was already aware of the wrongdoing.

Q: Did the Court rely only on dictionary definitions of “disclose”?

A: No. The Court looked at the statutory text, legislative history, and the broader purpose of section 1102.5 in protecting employees from retaliation for reporting unlawful conduct.

Q: Why is Kolla’s still relevant today?

A: It remains a leading California retaliation case because it confirms that internal complaints can qualify as protected whistleblowing even when the employer already knows about the conduct being reported.

Employees should not have to choose between speaking up about unlawful conduct and keeping their jobs. California labor law protects workers who report suspected legal violations, including complaints made internally to those with authority. If you were fired, threatened, or otherwise retaliated against after reporting unpaid wages or other workplace misconduct, Blumenthal Nordrehaug Bhowmik De Blouw LLP can assess whether your rights may have been violated under California whistleblower and retaliation law.

Does Settling Individual Labor Claims End a Worker’s PAGA Standing?

A California Supreme Court decision clarified that an employee who settles personal Labor Code claims does not automatically lose the right to continue pursuing representative civil penalties under PAGA on the state’s behalf.

Case: Kim v. Reins International California, Inc. (Cal. 2020)

Court: Los Angeles County Superior Court / Supreme Court of California

Case/Docket No.: BC539194 / S246911

Where the Case Began: Kim v. Reins International California

The case began when Justin Kim sued Reins International California, Inc., which operates restaurants in California and had employed him as a “training manager,” a position the company classified as exempt from overtime laws. Kim brought a putative class action alleging that he and other training managers had been misclassified. The operative complaint included claims for unpaid wages and overtime, meal and rest break violations, inaccurate wage statements, waiting time penalties, unfair competition, and civil penalties under the Private Attorneys General Act of 2004, or PAGA.

The case took an important procedural turn due to an arbitration agreement Kim had signed upon hire. Reins moved to compel arbitration of Kim’s individual claims for his own damages, sought dismissal of the class claims, and asked the court to stay the PAGA claim. The court dismissed the class claims, ordered arbitration of the individual claims, and stayed the PAGA claim. Later, Reins made a statutory offer to settle Kim’s individual claims for $20,000 plus attorney’s fees and costs, and Kim accepted. He then dismissed his individual claims, leaving only the PAGA claim.

The Legal Problem That Caused the Case to Proceed to the California Supreme Court:

The legal question was whether Kim still had standing to pursue the representative PAGA claim after he settled and dismissed his Labor Code claims. Reins argued that once Kim’s individual claims were resolved, he was no longer an “aggrieved employee” and therefore could not continue acting as the state’s representative in the PAGA action. The trial court agreed, granted summary adjudication in Reins's favor, and entered judgment in Reins's favor. The Court of Appeal affirmed that result.

PAGA Actions are Different from Ordinary Lawsuits:

That question mattered because PAGA actions differ from ordinary employee-damages suits. As the California Supreme Court explained, a PAGA plaintiff acts “as the proxy or agent of the state’s labor law enforcement agencies,” and a PAGA claim is fundamentally a dispute between the employer and the state. The Court granted review to resolve this issue of first impression: whether settling individual Labor Code claims destroys standing to continue pursuing PAGA penalties.

The Supreme Court’s Decision:

The California Supreme Court held that settling individual claims does not deprive an aggrieved employee of standing to pursue PAGA remedies. The Court focused on the text of Labor Code section 2699(c), which defines an “aggrieved employee” as a person who was employed by the alleged violator and against whom one or more of the alleged violations was committed. The Court found those two statutory requirements straightforward and held that Kim satisfied both. He had been employed by Reins, and he alleged that Labor Code violations had been committed against him. That was enough for standing.

Must a Worker Maintain an Unredressed Individual Damages Claim to Keep PAGA Standing?

The Court rejected the idea that a worker must maintain an unredressed individual damages claim to maintain PAGA standing. It reasoned that PAGA standing turns on the plaintiff’s status, and the occurrence of at least one alleged Labor Code violation against that plaintiff, not on whether the employee’s own monetary claims remain pending. The opinion also stressed that a PAGA action is legally and conceptually distinct from an employee’s personal suit for damages or statutory penalties, because PAGA is designed primarily to benefit the public and the state is the real party in interest.

That holding set an important precedent in California wage-and-hour law. After Kim, an employee who settles and dismisses individual Labor Code claims does not automatically lose standing to continue litigating a representative PAGA claim.

Why Kim v. Reins Matters:

This case matters because it preserved PAGA as a meaningful enforcement tool even when an employee’s individual claims have already been resolved. Without this ruling, employers could potentially narrow or eliminate representative PAGA actions simply by settling the named employee’s own claims and then arguing that no standing remained. The California Supreme Court rejected that approach and reinforced the distinct public-enforcement character of PAGA litigation.

Clarifying the Plaintiff’s Standing in a PAGA Claim:

It also matters because the decision clarified that PAGA standing is narrower in one sense and broader in another. It is narrower because only an “aggrieved employee” can sue. But it is broader because once a worker meets that definition, the worker’s ability to seek representative penalties does not depend on continuing to pursue individual damages claims. That gives workers and courts a cleaner rule for standing in PAGA cases.

For present-day litigants, Kim remains a major standing and enforcement case. It is especially important in wage-and-hour litigation involving arbitration, settlement strategy, and representative penalties, because it confirms that resolving individual claims does not necessarily end the case.

FAQ About the Kim PAGA Standing Case

Q: What was the main issue in Kim v. Reins International California, Inc.?

A: The main issue was whether an employee loses standing to pursue a representative PAGA claim after settling and dismissing individual Labor Code claims.

Q: What kind of workplace violations did Kim originally allege?

A: Kim alleged that Reins misclassified training managers as exempt and, as a result, violated laws concerning wages and overtime, meal and rest breaks, wage statements, waiting time penalties, unfair competition, and PAGA civil penalties.

Q: What did the lower courts decide before the case reached the Supreme Court?

A: The lower courts concluded that once Kim settled and dismissed his individual claims, he was no longer an “aggrieved employee” and therefore lacked standing to continue the PAGA claim.

Q: What did the California Supreme Court say about PAGA standing?

A: The Court held that PAGA standing depends on two things only: whether the plaintiff was employed by the alleged violator and whether one or more alleged Labor Code violations were committed against that plaintiff. Settling individual claims does not remove that standing.

Q: Why didn’t the settlement end Kim’s PAGA case?

A: Because the Court explained that a PAGA action is legally distinct from an employee’s personal damages claim. The state is the real party in interest, and PAGA standing does not disappear just because the employee’s own claims have been resolved.

Q: Is a PAGA claim the same as a personal wage claim?

A: No. The Court emphasized that a PAGA claim is conceptually different from an employee’s own suit for damages or statutory penalties. A PAGA plaintiff acts as the proxy or agent of the state’s labor law enforcement agencies.

Q: Why is Kim still important in California employment litigation?

A: It remains important because it is a leading case on PAGA standing and makes clear that settling individual Labor Code claims does not automatically extinguish a representative PAGA action.

Q: What practical lesson does Kim offer in wage-and-hour cases?

A: The case shows that settlement of individual claims may resolve personal relief, but it does not necessarily eliminate exposure to representative civil penalties under PAGA. That is an inference drawn directly from the Court’s holding and reasoning.

California wage-and-hour cases often involve more than an employee’s individual recovery. In some situations, the law allows workers to pursue civil penalties on the state’s behalf to enforce Labor Code protections more broadly. If you believe your employer violated California wage-and-hour laws and you have questions about PAGA standing, representative penalties, or how a settlement may affect your rights, Blumenthal Nordrehaug Bhowmik De Blouw LLP can assess whether your claims may still be actionable under California employment law.

When Does California Wage Statement Law Apply to Airline Employees Who Work Across State Lines?

A California Supreme Court decision involving United Airlines clarified when interstate transportation workers can invoke California’s wage-statement protections and rejected an argument that a wage-order exemption automatically defeats a Labor Code claim.

Case: Ward v. United Airlines, Inc. (Cal. 2020)

Court: Northern District of California / Supreme Court of California

Case/Docket No.: 3:15-cv-02309-WHA / 17-55471

The dispute began when United flight crew members, including pilot Charles Ward and flight attendants Felicia Vidrio and Paul Bradley, filed class actions challenging the wage statements United issued to them. The California Supreme Court explained that the workers alleged United’s wage statements did not include all of the information required by Labor Code section 226. Specifically, they complained that United listed only a post office box rather than a street address and did not state the hours worked and applicable hourly rates that made up their compensation for the pay period.

California Workers with Job Duties Outside the State:

The case did not arise in a typical single-state work setting. United is incorporated in Delaware, headquartered in Illinois, and has a substantial administrative presence in Texas, while the named plaintiffs were California residents working as pilots and flight attendants on routes spanning the country and world. Their work often occurred outside California’s territorial boundaries, and they were covered by collective bargaining agreements under the Railway Labor Act rather than compensated under a California-specific pay structure. Those facts made the dispute an especially important test of how California labor protections apply to interstate workers.

The Legal Problem That Caused the Case to Proceed to the California Supreme Court

The case moved to the California Supreme Court because the Ninth Circuit needed guidance on two unresolved state-law questions. The first was whether United could rely on the Railway Labor Act exemption in Wage Order No. 9 to block a claim brought under Labor Code section 226. The second was how to determine whether California’s wage-statement law applies to employees who live in California and receive pay here, but whose work is spread across multiple jurisdictions and not performed principally in any one state.

California Labor Laws Often Provide More Protection than Federal Laws:

Those questions mattered because California wage-and-hour law often provides protections beyond those available under federal law or narrower wage-order language. Without a clear rule, employers and workers in interstate industries would face uncertainty about whether California's itemized wage-statement requirements applied at all. The certified-question procedure put the issue squarely before the California Supreme Court.

The Supreme Court’s Decision

The California Supreme Court first held that the Railway Labor Act exemption in Wage Order No. 9 does not bar a wage-statement claim brought under Labor Code section 226. The Court reasoned that the wage order states only that it does not cover employees who entered qualifying collective bargaining agreements. It does not say that those employees are exempt from the Labor Code, and section 226 itself contains no comparable exemption.

Addressing the Geographic Reach of the Law:

The Court then addressed the geographic reach of section 226. It concluded that the California wage-statement law applies if the employee’s principal place of work is in California. For employees who spend most of their time in California, that answer is straightforward. But for interstate transportation workers, such as pilots and flight attendants, who do not perform most of their work in any one state, the Court held that section 226 applies when California is the worker’s base of work operations. The Court made clear that factors such as the employer’s headquarters, the employee’s residence, the place where the employee receives pay, or the fact that the employee pays California taxes are not controlling.

That decision set a significant precedent for interstate employment cases. Ward established that California wage-statement protections can extend to transportation workers whose jobs cross borders, so long as California serves as their principal place of work or, for workers without a majority-work state, their base of work operations.

Why this Case Matters in California Workplaces:

This case matters because it gave California courts a more precise framework for determining when section 226 applies in multistate employment relationships. Before Ward, there was substantial uncertainty about whether California wage-statement requirements could apply to employees who spent most of their working hours outside the state, even if they were closely connected to California. The Court’s base-of-operations rule supplied a clearer answer.

It also matters because the decision reinforces a broader principle in California labor law: courts will not read broad employer-friendly exemptions into Labor Code protections when the Legislature did not place them there. United could point to a wage-order exemption, but the Court refused to transform that narrower exemption into a shield against a statutory section 226 claim.

For workers in aviation, trucking, shipping, and other interstate industries, Ward remains an important precedent. It shows that California wage-and-hour protections do not disappear simply because a job involves crossing state lines. For employers, the case is a reminder that multistate operations require careful compliance analysis, especially when employees are based in California.

FAQ About the Ward Wage Statement Case and California’s Base-of-Operations Rule

Q: What was the main issue in Ward v. United Airlines, Inc.?

A: The main issue was whether California Labor Code section 226 applied to airline employees whose work crossed state lines and whether a wage-order exemption for workers covered by Railway Labor Act collective bargaining agreements barred their wage-statement claims.

Q: What did the employees say was wrong with the wage statements?

A: They alleged the wage statements failed to include a street address for United and did not list the hours worked and applicable hourly rates that made up their pay, even though California law generally requires that information.

Q: Did the California Supreme Court say the Railway Labor Act exemption defeated the section 226 claim?

A: No. The Court held that the exemption in Wage Order No. 9 applies only to the wage order itself and does not bar a claim brought under Labor Code section 226.

Q: What test did the Court use to decide whether section 226 applies?

A: The Court said section 226 applies if the employee’s principal place of work is in California. For interstate transportation workers who do not work mainly in any one state, the test is met if California is their base of operations.

Q: Did the employee's residence in California automatically control the result?

A: No. The Court said that residence, where pay is received, the payment of California income tax, and the employer’s headquarters are not the controlling factors. The focus is on the principal place of work or base of work operations.

Q: Why is this case important for interstate workers?

A: It provides a clearer rule for when California wage-statement protections apply to workers whose duties span multiple states, especially in industries like aviation and transportation.

Q: Does Ward apply only to airline employees?

A: No. Although the case involved pilots and flight attendants, its reasoning regarding the principal place of work and the base of work operations can apply in other interstate transportation contexts as well. That point is an inference from the Court’s articulated rule for interstate transportation workers generally.

Q: Why is Ward still relevant today?

A: It remains a key California precedent because it addresses two recurring issues in modern wage litigation: whether statutory protections can be limited by wage-order exemptions, and how to determine the reach of California labor law in multistate employment settings.

Wage-and-hour compliance becomes more complicated when employees work across state lines, but complexity does not eliminate California labor protections. When California is the principal place of work or base of operations, workers may still be entitled to California-compliant wage statements and other statutory safeguards. If you believe your employer failed to provide legally required wage information or improperly denied California labor protections based on the interstate nature of your job, Blumenthal Nordrehaug Bhowmik DeBlouw LLP can evaluate whether your rights may have been violated under California employment law.

Did Starbucks Have to Pay for a Few Minutes of Off-the-Clock Work?

A California Supreme Court decision involving routine store-closing tasks clarified that employers generally cannot avoid paying for regularly occurring off-the-clock work by labeling the time as too short to count.

Troester v. Starbucks Corp. (Cal. 2018)

Court: Supreme Court of California

Case/Docket No.: S234969

Where the Troester v. Starbucks Case Started:

The dispute began when Douglas Troester sued Starbucks on behalf of himself and a putative class of nonmanagerial California employees who performed store-closing work during the relevant period. Troester worked as a shift supervisor, and the California Supreme Court explained that he alleged Starbucks required him to clock out before completing the store’s computerized closing procedure and other closing tasks. Starbucks then removed the case to federal court and argued that the uncompensated time was so small that the law did not require payment.

Was the Unpaid Work More than an Occasional Stray Moment?

The Court described the unpaid work as more than an occasional stray moment. Troester presented evidence that, after clocking out, he had to transmit store sales, profit-and-loss, and inventory data to Starbucks headquarters, activate the alarm, exit the store, lock the door, and walk coworkers to their cars, as required by company policy. He also sometimes had to reopen the store so employees could retrieve forgotten items, wait with them for rides, or bring in patio furniture left outside. According to the opinion, these tasks generally took about 4 to 10 additional minutes per day, and over roughly 17 months, the unpaid time totaled about 12 hours and 50 minutes.

The Legal Problem That Caused the Case to Proceed to the California Supreme Court

The central legal issue was whether California law recognizes the same de minimis doctrine used in federal wage-and-hour cases under the FLSA. Under federal law, courts have sometimes excused compensation for very small amounts of time when recording it is administratively difficult. The district court applied that doctrine, concluded Troester’s unpaid time was de minimis, and granted summary judgment to Starbucks.

Troester v. Starbucks On Appeal: The Ninth Circuit

On appeal, the Ninth Circuit certified the question to the California Supreme Court because California wage law often diverges from federal law and can provide broader employee protections. That made the issue important beyond Troester’s individual dispute: the answer would determine whether California employers could rely on the federal de minimis doctrine to defend unpaid-wage claims under California Labor Code sections 510, 1194, and 1197.

The Supreme Court’s Decision in Troester v. Starbucks

The California Supreme Court answered the certified question in Troester’s favor. It held that the relevant California statutes and wage order had not incorporated the federal de minimis doctrine. The Court pointed to the language requiring payment for “all hours worked” and “[a]ny work” beyond statutory thresholds, and it found no convincing evidence that the Legislature or the Industrial Welfare Commission intended to import the less protective federal rule.

Should California's De Minimis Principle Still Apply?

The Court then addressed whether some broader California de minimis principle should still apply as a background matter of state law. It declined to decide whether there could ever be a wage claim involving time so irregular or brief that compensation would be unreasonable to require. But on the facts before it, the Court held the doctrine did not apply. Starbucks had allegedly required Troester to work several minutes off the clock on a regular basis, and California’s wage-and-hour scheme, the Court said, is a system that “does care for small things.”

A Significant Precedent Set Regarding Off-the-Clock Work:

The precedent set by Troester is significant: California employers may not routinely require employees to perform several minutes of off-the-clock work and then avoid paying for that time by invoking the federal de minimis doctrine. The Court also emphasized that employers are better positioned than workers to address practical timekeeping difficulties through restructuring, technology, estimation methods, or lawful rounding practices.

Why Does the Decision in Troester v. Starbucks Matter?

This case matters because it closed off a defense that employers often raised when unpaid work happened in short increments rather than in large blocks. After Troester, the fact that uncompensated work takes only a few minutes per shift does not automatically make it noncompensable under California law, especially when the work is a regular feature of the job. It also matters because the opinion reinforces a broader theme in California employment law: state wage-and-hour protections are often interpreted more expansively than their federal counterparts. The Court relied on the remedial purpose of California wage law, its requirement that employees be paid for all hours worked, and the reality that even modest daily losses can accumulate into meaningful losses over time for hourly workers.

For current and future litigants, Troester is especially useful in cases involving required closing tasks, post-shift duties, security procedures, or other recurring work performed after an employee has clocked out. It gives workers a strong precedent against the argument that regularly required unpaid minutes are too trivial to count.

FAQ About the Troester Off-the-Clock Case and California’s De Minimis Rule

Q: What was the main issue in Troester v. Starbucks Corp.?

A: The main issue was whether California employers can rely on the federal de minimis doctrine to avoid paying employees for small amounts of regularly occurring off-the-clock work.

Q: What kind of unpaid work was involved in the case?

A: Troester alleged that after clocking out, he still had to complete store-closing duties such as transmitting store data, setting the alarm, locking the door, and walking coworkers to their cars. On some occasions, he also had to reopen the store for employees or bring in patio furniture.

Q: How much unpaid time was at issue?

A: According to the opinion, the closing tasks usually took about four to ten minutes per shift, and over roughly 17 months, the total unpaid time amounted to about 12 hours and 50 minutes.

Q: Did the California Supreme Court adopt the federal de minimis doctrine?

A: No. The Court held that California’s relevant statutes and wage order did not adopt the FLSA’s de minimis doctrine.

Q: Did the Court say a California de minimis rule can never apply in a wage case?

A: Not exactly. The Court left open the possibility that there could be cases involving time so irregular or so brief that compensation might not reasonably be required, but it held that the doctrine did not apply under the facts presented in Troester.

Q: Why did the Court reject the doctrine here?

A: The Court emphasized that California wage law requires payment for all hours worked, is meant to be construed liberally to protect employees, and is concerned even with relatively small amounts of work time when those minutes are a regular part of the job.

Q: What did the Court say employers should do instead of relying on de minimis arguments?

A: The Court noted that employers are often in a better position than employees to solve recordkeeping problems by restructuring work, using technology, reasonably estimating time, or adopting lawful rounding practices.

Q: Why is Troester still important today?

A: It remains a key California precedent in off-the-clock cases because it limits a common employer defense and strengthens claims involving recurring unpaid work performed before or after a shift.

California wage-and-hour law does not treat regularly required off-the-clock work as a meaningless technicality simply because each instance lasts only a few minutes. When those minutes are part of the job, they may still be compensable under state law. If you believe your employer required you to perform unpaid work before clocking in, after clocking out, or during other uncompensated parts of your day, Blumenthal Nordrehaug Bhowmik De Blouw LLP can evaluate whether your rights may have been violated under California employment law.

Did Dynamex Misclassify Delivery Drivers Under California Law?

A California Supreme Court decision arising from a delivery-driver misclassification dispute reshaped how courts analyze who qualifies as an employee under California wage orders.

Case: Dynamex Operations West, Inc. v. Superior Court (Cal. 2018)

Court: Los Angeles Superior Court / California Supreme Court

Case/Docket No.: BC332016 / S222732

Overview of the Original Dynamex Operations West Employment Law Case:

The case began after Dynamex delivery drivers alleged they had been reclassified as independent contractors even though they were still performing essentially the same pickup-and-delivery work they had done when the company treated them as employees. The Supreme Court explained that Dynamex had classified drivers as employees before 2004, then switched to an independent-contractor model after concluding the change would create economic savings. Under the new arrangement, drivers were expected to provide their own vehicles and cover expenses such as fuel, tolls, maintenance, insurance, taxes, and workers’ compensation.

Alleged Violations of California Wage Order No. 9:

According to the opinion, the drivers claimed that this change was more than a label swap. They alleged that Dynamex’s decision to classify them as independent contractors violated California Wage Order No. 9, the Labor Code, and California’s unfair competition law. The complaint asserted claims tied to unpaid overtime, inaccurate wage statements, unreimbursed business expenses, and unlawful business practices.

Factors Considered When Determining “Classification” of Workers:

The Court also described several features of the working relationship that made the dispute significant. Dynamex obtained customers, set customer rates, assigned deliveries through its dispatchers, tracked packages, and retained authority over the number and type of deliveries offered to drivers. Some drivers were expected to wear Dynamex shirts and badges, and others were required to place company or customer decals on their vehicles during deliveries. Although drivers had some flexibility in setting schedules and routes, the larger business structure remained centered on Dynamex’s delivery operation.

The Legal Problem That Caused the Case to Proceed to the California Supreme Court

The main legal problem was not simply whether the drivers won or lost on the facts. The real issue was which legal test California courts should use when deciding whether workers are employees or independent contractors for purposes of California wage orders. Dynamex argued that courts should rely on the more flexible, multifactor standard set forth in Borello. The drivers argued that the wage-order definitions discussed in Martinez v. Combs also applied and offered a broader basis for finding employment status.

Certified Class Based on Wage-Order Definitions:

That disagreement mattered because the trial court certified a class based on the wage-order definitions of “employ” and “employer,” rather than limiting the analysis to the traditional Borello framework. Dynamex challenged that ruling, first by filing a motion to decertify and then by filing a writ of mandate. The Court of Appeal largely agreed with the trial court on the wage-order claims, and the California Supreme Court took the case to decide whether the wage-order “suffer or permit to work” standard could be used to determine employee-versus-independent-contractor status in this setting.

The Supreme Court’s Decision: Deciding Whether a Worker is an Employee or Independent Contractor

The California Supreme Court agreed that the wage-order definition could be used and held that the “suffer or permit to work” standard applies when deciding whether a worker is an employee or an independent contractor for purposes of the obligations imposed by a California wage order. The Court rejected the argument that this standard should be confined to joint-employer situations. From there, the Court adopted the now-famous ABC test for wage-order claims. Under that test, a worker is presumed to be an employee unless the hiring entity proves all three of the following:

A. The worker is free from the hiring entity’s control and direction in performing the work, both under the contract and in practice;

B. The worker performs work outside the usual course of the hiring entity’s business; and

C. The worker is customarily engaged in an independently established trade, occupation, or business of the same nature as the work performed.

The Court emphasized that if the hiring business fails to prove even one of those three elements, the worker is treated as an employee for purposes of the wage order. It also affirmed the judgment below, concluding that the class certification ruling could stand because the drivers’ claims were sufficiently capable of classwide resolution under the proper understanding of the wage-order standard.

Definitions According to Dynamex: Why Does it Matter?

This case became one of the most important California employment decisions of the last decade because it changed the framework for wage-order misclassification cases. Instead of leaving parties to battle primarily over a loose, totality-of-the-circumstances test, the Court adopted a cleaner and more demanding rule that places the burden on the hiring entity.

That matters in practical terms. Businesses that rely on workers to perform functions at the heart of their operations face a much harder road when trying to classify those workers as independent contractors. For workers, the decision created a more predictable path for challenging misclassification in cases involving overtime, minimum wage protections, meal and rest break obligations, and wage-statement issues under California wage orders. The Court also made clear that wage orders are meant to protect workers, support fair competition, and prevent employers from gaining an edge by using arrangements that strip workers of basic labor protections.

For present-day litigants, Dynamex remains a foundational precedent because it is often the starting point in any California dispute over whether a worker was wrongly treated as an independent contractor under wage-order law.

FAQ About the Dynamex Misclassification Case and the ABC Test

Q: What was the main issue in Dynamex?

A: The core issue was whether Dynamex delivery drivers were properly classified as independent contractors or whether they should have been treated as employees under California wage orders.

Q: Why were the drivers upset with the reclassification?

A: They alleged that after Dynamex changed their status, they were still doing the same work but lost protections associated with employee status, including overtime-related protections and other rights tied to wage-order coverage.

Q: What is the ABC test?

A: It is the three-part test the California Supreme Court adopted in Dynamex for wage-order claims. A hiring entity must prove freedom from control, work outside the usual course of the business, and that the worker is customarily engaged in an independent business of the same nature.

Q: Does a company win if it proves only one or two parts of the ABC test?

A: No. The hiring entity must prove all three parts. If it fails to prove any one of them, the worker is treated as an employee for purposes of the wage order.

Q: Why was part B of the ABC test so important in this case?

A: Because Dynamex was a delivery company, the drivers’ pickup-and-delivery work appeared closely tied to the company’s usual course of business. That made the classification question especially suitable for classwide treatment.

Q: Did the Supreme Court decide every claim in the case under the same standard?

A: No. The Court’s review focused on wage-order-based claims. The opinion noted that the Court of Appeals had treated reimbursement claims under Labor Code section 2802 differently for certification purposes.

Q: Why is Dynamex still important today?

A: Because it remains one of the leading California cases on worker misclassification. Lawyers, workers, and courts still rely on it when evaluating whether a company can lawfully classify someone as an independent contractor for wage-order purposes.

Q: Did the Court say every independent contractor is really an employee?

A: No. The Court expressly said the wage-order standard should not be read so literally as to sweep in traditional independent contractors, such as plumbers or electricians, who operate their own businesses.

Worker-classification disputes can affect far more than job titles. In California, they may shape whether workers are entitled to overtime, wage statements, reimbursement protections, and other basic safeguards under state labor law. If you believe you were classified as an independent contractor even though your work was part of a company’s regular business operations, Blumenthal Nordrehaug Bhowmik De Blouw LLP can assess whether your rights may have been violated under California employment law.

Can Amazon Be Held Liable After Families Allege It Sold a “Suicide Kit” Through Its Platform?

Scott v. Amazon.com, Inc. is a closely watched wrongful death and product-liability case that considers whether Amazon can face negligence claims after four people died by suicide using high-purity sodium nitrite purchased through the major online retailer’s website. In February 2026, the Washington Supreme Court held that suicide is not automatically a superseding cause at the pleading stage and allowed the families’ product-seller negligence claims under Washington law to move forward.

Case: Scott v. Amazon.com, Inc.

Court: Washington State Supreme Court

Case No. 103730-9

Family Members Filed a Wrongful Death Lawsuit Against Amazon:

The plaintiffs are family members and personal representatives of the estates of four decedents: Mikael Scott, Tyler Muhleman, Demetrios Viglis, and Ava Passannanti. The opinion identifies Ruth Scott, Jeff Muhleman, Cindy Cruz, Mary Ellen Viglis, James Passannanti, and Annette Gallego as the petitioners who brought the lawsuits on their own behalf and on behalf of the estates. According to the court, the underlying suits were filed after each decedent purchased high-purity sodium nitrite through Amazon’s website and later died from sodium nitrite poisoning. The plaintiffs allege Amazon’s sales and recommendation practices increased the risk of harm and contributed to the deaths.

The Defendant in the Wrongful Death Case is Amazon

The defendant is Amazon.com, Inc. The Washington Supreme Court opinion describes Amazon as the online seller through whose website the decedents purchased the sodium nitrite products at issue, specifically Loudwolf Sodium Nitrite and HiMedia GRM417-500G Sodium Nitrite. The plaintiffs allege Amazon continued selling high-purity sodium nitrite without age verification or adequate warnings, and recommended related products that could facilitate suicide.

The Plaintiff’s Allegations: Scott v. Amazon.com, Inc.

The plaintiffs alleged Amazon sold 98.0 to 99.6 percent pure sodium nitrite on its platform even though, according to the complaints, there was no legitimate household use for such high-purity sodium nitrite, and Amazon knew it was being used in suicides. They also alleged Amazon recommended related products such as Tagamet, small scales, and The Peaceful Pill Handbook, and sent reminder emails tied to those products, effectively helping create what critics described as a “suicide kit.” The complaints further alleged Amazon had been warned through parents, consumer reports, poison data trends, and a March 17, 2021, FDA letter that the product had been used for suicide, yet it continued to allow sales through other brands. The plaintiffs also contended the warnings shown to consumers were inadequate because the labels did not properly disclose the product’s lethality or explain how to reverse its effects if ingested.

Define Superseding Cause: A superseding cause is an event so significant that it breaks the legal chain between a defendant’s conduct and the harm that followed. In this case, the key issue was whether suicide always cuts off liability as a matter of law in a negligence-based product liability claim.

What Is Product Seller Negligence? Product seller negligence is a claim that a company that sells a product acted carelessly in a way that caused harm, even if it did not manufacture the product. Here, the Washington Supreme Court held the families had pleaded enough facts to pursue negligence claims against Amazon under the Washington Product Liability Act.

Considering the Main Question in the Case:

The central question in Scott v. Amazon.com, Inc. was whether suicide automatically bars a negligence claim by acting as a superseding cause under Washington law. Amazon argued the decedents’ suicides broke the chain of causation and therefore prevented recovery as a matter of law. The Washington Supreme Court rejected that broad rule at the motion-to-dismiss stage, explaining that foreseeability and proximate cause are generally questions for the fact finder and that the plaintiffs had alleged enough to proceed. The decision means the families may continue litigating whether Amazon’s sales, recommendations, and warning practices negligently increased the risk of the very harm that occurred.

FAQ: Scott v. Amazon.com, Inc.

Q: What is Scott v. Amazon.com, Inc. about?

A: It is a Washington wrongful death and product liability case brought by the families of four people who died by suicide after ingesting high purity sodium nitrite purchased through Amazon’s website. The plaintiffs allege Amazon negligently sold and promoted the product despite knowing it was being used for suicide.

Q: What did the Washington Supreme Court decide?

A: The court reversed the Court of Appeals and reinstated the trial court’s denial of Amazon’s motions to dismiss. It held that suicide is not always a superseding cause as a matter of law at the pleading stage and that the plaintiffs alleged sufficient facts to state a negligence claim under the Washington Product Liability Act.

Q: What products were involved in the case?

A: The opinion identifies two sodium nitrite products sold through Amazon’s website: Loudwolf Sodium Nitrite and HiMedia GRM417-500G Sodium Nitrite. The court noted allegations that these products were 98.0% to 99.6% pure.

Q: Why did the families say Amazon should have foreseen the danger?

A: The plaintiffs alleged Amazon had been warned through grieving parents, one-star reviews, poison data trends, regulatory alerts, and an FDA letter that sodium nitrite sold through the platform was being used in suicides. They also alleged Amazon recommended companion products associated with suicide methods and continued sales after those warnings.

Q: Does this ruling mean Amazon is liable?

A: No. The ruling does not decide liability. It only means the plaintiffs’ claims were sufficiently pleaded to survive dismissal and move forward.

Q: Why might this case matter beyond Washington?

A: The decision is significant because it rejects a categorical rule that suicide always ends proximate cause analysis at the outset of a case. That could influence how courts and litigants think about platform liability, product warnings, and foreseeability when online product suggestion algorithms allegedly contribute to dangerous conduct.

If you have questions about wrongful death, product liability, or whether a company’s conduct may have contributed to a preventable death, the wrongful death attorneys at Blumenthal Nordrehaug Bhowmik De Blouw LLP can help. Contact one of our offices in Los Angeles, San Diego, San Francisco, Sacramento, Riverside, or Chicago today to learn more about your legal options.

Was Randolph’s California Employment Case Properly Dismissed Under the Five-and-a-Half-Year Rule?

Randolph v. Trustees of the California State University is a California employment law case that turned less on the underlying discrimination claims and more on a strict procedural deadline. The 2026 decision of the California Court of Appeal upheld the dismissal of Teresa Randolph’s case; it found that the record did not show a valid oral agreement to extend the statutory deadline to bring the action to trial.

Case: Randolph v. Trustees of the Cal. State Univ.

Court: California Court of Appeal

Case No. Super. Ct. No. 19CV01226

Who Is the Plaintiff in the Case?

The plaintiff is Teresa Randolph, a former employee of California State University, Chico. According to the appellate opinion, she filed suit against her prior employer and other defendants on April 19, 2019, asserting claims of employment discrimination, whistleblower retaliation, and termination of her employment. The opinion does not resolve whether those underlying employment allegations were true, because the appeal focused on whether the case was brought to trial in a timely manner. As a result, the published decision addresses whether her lawsuit could proceed after missing the governing trial deadline.

Who Is the Defendant in the Case?

The lead defendant is the Trustees of California State University. The opinion states that Randolph sued her prior employer and several others (collectively, the defendants). During the trial court proceedings, the defendants moved to dismiss the case after the trial date was set beyond the statutory deadline for bringing the action to trial, arguing that no exception applied and that the action therefore had to be dismissed under California’s mandatory dismissal rules.

The Plaintiff’s Allegations: Randolph v. Trustees of the Cal. State Univ.

Randolph’s underlying lawsuit involved employment discrimination, whistleblower retaliation, and wrongful termination-related claims arising from her prior employment at California State University, Chico. The appellate dispute, however, was procedural. Randolph argued the parties had effectively agreed in open court to a February 3, 2025, trial date, even though the statutory deadline to bring the case to trial was October 19, 2024. The defendants responded that there was no valid stipulation extending the deadline because the minute order did not reflect any such agreement, and no transcript of the hearing was included in the appellate record. The trial court agreed and dismissed the case with prejudice, and the Court of Appeal affirmed.

What Is Mandatory Dismissal? This means the court must dismiss a case if it is not brought to trial within the time required by law, unless a recognized exception applies. In Randolph’s case, the Court of Appeal held that dismissal was required because the statutory deadline had expired and the claimed exception was not established in the record.

What Is an Oral Stipulation Made in Open Court? Under Code of Civil Procedure section 583.330, parties can extend the deadline to bring a case to trial by oral agreement in open court, but only if that agreement is entered in the court’s minutes or preserved in a transcript. The appellate court held that the requirement was not satisfied here.

What Is the Main Question in the Case?

The central question on appeal was whether the parties entered into a valid oral agreement extending the deadline to bring Randolph’s case to trial. Randolph argued that both sides agreed to the February 2025 trial date at the March 27, 2024, case management conference and that this was enough to avoid mandatory dismissal. The Court of Appeal disagreed, explaining that section 583.330 requires the oral agreement to appear in the court minutes or in a transcript, and the record contained neither. Because the minute order showed only that the trial date was set, without reflecting mutual assent to extend the deadline, the dismissal stood.

FAQ: Randolph v. Trustees of the Cal. State Univ.

Q: What Was Randolph v. Trustees of the California State University About?

A: The underlying lawsuit involved employment discrimination, whistleblower retaliation, and termination-related claims by a former California State University, Chico employee. The appellate decision, however, focused on whether the case was properly dismissed for not being brought to trial within the statutory deadline.

Q: Why Was Randolph’s Case Dismissed?

A: The case was dismissed because it was not brought to trial within the five-year deadline, as extended by six months under Judicial Council emergency rule 10 during the COVID-19 period. The Court of Appeal held that no valid statutory exception was shown in the record.

Q: What Was the Deadline to Bring the Case to Trial?

A: The Court of Appeal said Randolph filed suit on April 19, 2019, and that the five-year-plus-six-month deadline to bring the action to trial was October 19, 2024. The trial court later set the trial for February 3, 2025, which was beyond that deadline.

Q: Why Didn’t the February 2025 Trial Date Count as an Agreed Extension?

A: The appellate court said an oral agreement to extend the deadline must be reflected in the minutes of the court or preserved in a transcript. Here, the minute order simply listed the dates that were set and did not record any oral stipulation, and there was no reporter’s transcript in the record.

Q: What Did the Court of Appeal Decide?

A: The Court of Appeal affirmed the judgment of dismissal. It held that the oral-agreement exception in Code of Civil Procedure section 583.330, subdivision (b), did not apply because the record lacked the documentation required by the statute.

Q: Why Does This Case Matter in California Employment Litigation?

A: This case is a reminder that even serious workplace claims can be lost on procedural grounds if statutory deadlines are missed. For both employees and employers, it underscores the importance of preserving any trial-deadline extension in a written stipulation, a minute order that clearly reflects the agreement, or a transcript.

If you have questions about employment discrimination, whistleblower retaliation, wrongful termination, or procedural issues that may affect your right to pursue a California employment case, the employment law attorneys at Blumenthal Nordrehaug Bhowmik De Blouw LLP can help. Contact one of our offices in Los Angeles, San Diego, San Francisco, Sacramento, Riverside, or Chicago today to learn how to hold your employer accountable.