California Labor & Employment Law Update - March 2006

Supreme Court

• Court Limits Exposure Under Section 1981; Privity of Contract Matters! (Part I).
• Arbitrability Revisited. Who Decides the Issue if the Defense to Compelled Arbitration is That The Contract Is Illegal?
• Too Close to Call? Court to Rehear Public Employee Free Speech Case.

Federal Courts
ERISA

• Arbitration Agreement Does Not Bind Plan Participants to Arbitrate Claims Brought on Behalf of the Plan if They Were Not a Party to the Deal. Privity Matters! (Part II)

Title VII

• Title VII Claim By Male Subordinate Against Female Manager Barred By Failure To Take Advantage of Known Anti-Harassment Policy.

California Courts
Torts

• “Put Down the @#$%^ Phone and Drive” - Employer not Liable for Injuries Resulting from Intemperate Driving Behavior of Employee.

Wage & Hour

• “It’s a Penalty!”...“No, It’s Wages!”...“It’s Both”... “No It’s Not”...“Is So” What is the Proper Characterization of Money Due To Employees For Missed Breaks? Supreme Court Will Decide.
• Employers May Be Paying For More Changing Time But Not For A Voluntary Ride on a Parking Lot Shuttle Bus.

Workers' Compensation

• Injury Suffered In Off-Duty Basketball Game Was Not Compensable Under Workers’ Compensation.
• Injuries Occurring Before January 1, 2005 Must Be Evaluated Under The Procedures Established By Former Labor Code §4062.

Legislative/Regulatory Updates

• Revised EEO-1 Report Approved By OMB.
• LMRDA Reporting Obligations.
• FMLA And Cafeteria Plan and Multiemployer plan Contributions.