2026 California Employment Law Updates
3. Significant Cases Affecting Businesses
A. CRST Expedited, Inc. v. Superior Court (2025)
- “Headless” PAGA claims (seeking penalties only for others, not the plaintiff) permitted.
- Conflicts with Leeper v. Shipt (2024), where headless PAGA actions were disallowed.
- California Supreme Court reviewing the issue.
Suggested Action Plan:
- Timely pay fees or risk waiving the right to enforce arbitration agreements
- Mutually agree to an extension of the payment deadline
B. Iloff v. LaPaille (2025)
Key holdings:
- Ignorance of wage laws does not establish a good-faith defense to liquidated damages.
- Employers must make reasonable effort to understand legal obligations.
- Paid sick leave claims may be raised for the first time on appeal from a Labor Commissioner decision.
C. Bradsbery v. Vicar (2025)
- Revocable, prospective (written) meal period waivers for shifts 5–6 hours are enforceable.
- Waivers must not be coercive or unconscionable.
- Procedural irregularities could invalidate the waiver.
- No employer retaliation for revoking the waiver.
Suggested Action Plan:
- Include a properly drafted blanket meal period waiver as part of the onboarding documents
4. Discrimination, Harassment & Retaliation
A. SB 303 — Bias Mitigation Training
- An employee’s good-faith acknowledgment or admission of personal bias during training does not constitute discrimination.
- Intention is to encourage employers to conduct bias mitigation training.
B. SB 1137 — Intersectionality Discrimination
- FEHA clarified to prohibit discrimination on the basis of intersectionality (combination) of two or more protected traits