In early 2020, thousands of Uber and Lyft drivers, supported by the advocacy group Rideshare Drivers United, filed claims against the companies, alleging misclassification as independent contractors and demanding over $1.3 billion in wages, expenses, and damages. The California attorney general, labor commissioner, and city attorneys of Los Angeles, San Diego, and San Francisco joined in a coordinated lawsuit, seeking to enforce state labor laws and hold the companies accountable. Drivers who worked between 2016 and 2020 could be eligible for a potential settlement, as negotiations are now underway, with mediation sessions scheduled with Uber and Lyft in the coming

Recent California appellate decisions, Rodriguez v. Packers Sanitation Services LTD., LLC and Moniz v. Adecco USA, Inc., underscore the critical role of strategic procedural motions in PAGA defense. Rodriguez addressed "headless" PAGA actions, where plaintiffs disclaim individual claims to avoid arbitration. The court ruled arbitration of unasserted claims is impermissible, despite their inherent presence in PAGA actions, creating a conflict with Leeper v. Shipt. Crucially, a plaintiff’s disavowal of individual relief binds them, potentially enabling dismissal for lack of standing. Employers must be vigilant in navigating these procedural complexities, understanding that the courts are closely examining the form and substance

It is early in the 2025 legislative session, but California lawmakers have already introduced a series of proposed bills that could significantly impact the state's employers. Although it is too early to predict which, if any, of these bills will pass, the potential changes could greatly affect businesses and workers across California. Employers desiring further guidance in navigating the increasingly complicated landscape of compliance with employment law in California should contact MNK Law, APC, at 562.362.6437, or info@mnklawyers.com.

The recent Ninth Circuit decision in Chabolla v. ClassPass, Inc. highlights the challenges of enforcing arbitration agreements in online Terms of Use. Katherine Chabolla sued ClassPass, alleging violations of California’s Automatic Renewal Law, Unfair Competition Law, and Consumers Legal Remedies Act after her subscription auto-renewed following a pandemic-related pause. ClassPass argued that Chabolla had agreed to arbitration through a “sign-in wrap” agreement, which linked the Terms of Use without requiring explicit user consent. Unlike traditional “clickwrap” agreements that demand clear acknowledgment, sign-in wrap agreements rely on user actions like signing up as implicit consent.

The State of California Civil Rights Department (“CA CRD”) is currently conducting its fifth annual pay data filing, with a due date of May 14, 2025. This requirement, established in 2021, emerged after the Equal Employment Opportunity Commission (“EEOC”) stopped collecting pay data as part of the EEO-1 report. To bridge this gap, California passed Senate Bill 973 in 2020, mandating private employers with at least 100 employees nationwide and at least one employee in California to submit annual pay data reports, which include W-2 wages

On March 10, 2025, the U.S. Supreme Court declined to hear an appeal from a former California fire chief who claimed he was fired because of his Christian faith. The case, brought by Ronald Hittle, had the potential to reshape how courts handle employment discrimination claims but failed to gain enough support among the justices.

Recently Governor Gavin Newsom signed an executive order that will affect the many thousands of state workers in California, and potentially indirectly, many private workers as well. The order also includes good news for former federal employees who have been let go in the recent mass firings by the U.S. Federal Government. MNK Law is here to advise any employers contemplating re-implementing similar in-office requirements, regarding how to best navigate and implement such policies.

President Trump recently issued several Executive Orders aimed at Diversity, Equity, Inclusion and Accessibility (“DEI” or “DEIA”) initiatives. On January 20, 2025, the President signed an order entitled “Ending Radical and Wasteful Government DEI Programs and Preferencing” and on January 21, 2025, he signed an order entitled, “Ending Illegal Discrimination and Restoring Merit-Based Opportunity”.

California’s Private Attorneys General Act (PAGA) remains a hot topic, with recent court decisions making it even more complicated for both workers and employers. In Leeper v. Shipt, the court ruled that every PAGA lawsuit must include an individual claim, meaning many cases would have to go through arbitration. This decision favored employers, as arbitration can be a quicker and more controlled way to resolve disputes.

The Financial Crimes Enforcement Network (FinCEN) has announced an extension of the deadline for filing Beneficial Ownership Information (BOI) reports under the Corporate Transparency Act (CTA). While the implementation of these requirements back in effect may be a stressful matter for some, FinCEN is offering businesses a bit of good news. Any businesses needing further guidance in compliance with these requirements should contact MNK Law at 562.362.6437, or info@mnklawyers.com.