Illinois Supreme Court Rules Privacy Act Claims Have Five Year Statute of Limitations

On February 2, 2023, the Supreme Court of the State of Illinois ruled that all claims under Section 15 of the state’s Biometric Information Privacy Act (Privacy Act or BIPA) have a five year statute of limitations. The decision partially overturns an appellate court ruling that had found claims under subsections 15(c) and 15(d) of the Privacy Act were governed by a one-year limitations period under Illinois law for defamation and privacy claims.

First Jury Verdict Issued in Illinois Biometric Privacy Act Class Action

On October 12, 2022, a federal jury in the U.S. District Court for the Northern District of Illinois concluded that a company violated the Illinois Biometric Information Privacy Act (Privacy Act or BIPA) 45,600 times over six years by collecting truck drivers’ fingerprints to verify identities without the informed, written consent the Privacy Act requires.

California Federal Judge Applies Viking River to Dismiss Representative PAGA Claims

In Johnson v. Lowe’s Home Centers, LLC, a decision issued on September 21, 2022, a federal judge in the U.S. District Court for the Eastern District of California issued an order compelling arbitration of a plaintiff’s individual claims under the Private Attorneys General Act (PAGA) and dismissing the remaining representative PAGA claims.

No COVID-19 Slowdown for California PAGA Filings: The Data Is In

The COVID-19 pandemic did not slow down the pace of new California Private Attorneys General Act (PAGA) letters being filed with the state Labor Workforce Development Agency (LWDA), according to filing data. Instead, there was a significant increase in the filing of PAGA letters during the height of the COVID-19 pandemic in 2020 and 2021.

Supreme Court Sides With Viking River Over Arbitration of California PAGA Claims

On June 15, 2022, the Supreme Court of the United States ruled in favor of Viking River Cruises Inc. in a case over whether it could use an arbitration agreement to force a lawsuit brought under California’s Private Attorneys General Act (PAGA) on behalf of aggrieved employees into arbitration. In Viking River Cruises, Inc. v. Moriana, No. 20-1573, the Supreme Court’s highly anticipated decision, the Court reasoned that the Federal Arbitration Act (FAA) requires the enforcement of an arbitration agreement that waived an employee’s right to bring individual claims through PAGA and that once those individual claims are sent to arbitration there is no standing to bring representative claims for violations of the California Labor Code on behalf of other aggrieved employees.

Supreme Court Declines to Resolve Circuit Split on Exercise of Personal Jurisdiction in FLSA Collective Actions

On June 6, 2022, the Supreme Court of the United States declined to hear petitions seeking review of whether federal courts may exercise personal jurisdiction over claims of nonresident plaintiffs who join Fair Labor Standards Act (FLSA) collective actions when their claims are not connected to the defendant’s activities in the forum state.

California Court of Appeal Creates Rift Regarding Trial Courts’ Power to Strike or Limit PAGA Claims for Unmanageability

On March 23, 2022, the Court of Appeal of the State of California, Fourth Appellate District, issued the latest ruling on the hotly contested issue of whether a trial court is empowered to dismiss or limit representative claims for alleged violations of the California Labor Code under the Private Attorneys General Act (PAGA) based on manageability concerns.

California Employers’ Winning Streak in ‘Suitable Seating’ Cases Continues in Latest Appellate Decision

On February 18, 2022, a California appellate court issued the latest guidance in the continuing saga of statewide “suitable seating” litigation, cementing a significant trial victory for grocers, retailers, and other employers across California.

California Court of Appeal Applies ‘Relation Back’ Doctrine to Substitute PAGA Plaintiff’s Claims Deadline

On February 7, 2022, a California appellate court issued the latest decision regarding the Private Attorneys General Act (PAGA). Representative PAGA actions, which typically involve a relatively brief statute of limitations, permit California employees to collect civil penalties on behalf of the State of California for Labor Code violations committed against them and other employees.

No Grand Bargain: Illinois Supreme Court Rejects Exclusive Remedy Preemption in Privacy Act Class Actions

On February 3, 2022, in McDonald v. Symphony Bronzeville Park, LLC, the Illinois Supreme Court held the exclusive remedy provisions of the Illinois Workers’ Compensation Act (“Compensation Act”) do not preempt employee statutory damages claims under the Illinois Biometric Privacy Act (“Privacy Act”).

First Circuit Creates Split Regarding Federal Court Jurisdiction Over FLSA Multistate Collective Actions

On January 13, 2022, in Waters v. Day & Zimmermann NPS, Inc., the First Circuit Court of Appeals became the third federal appellate court to address the application of the Supreme Court of the United States’ decision in Bristol-Myers Squibb Co. v. Superior Court of California to Fair Labor Standards Act (FLSA) collective actions. Unlike the Sixth Circuit Court of Appeals and the Eighth Circuit Court of Appeals, however, the First Circuit concluded that a federal court does have personal jurisdiction over claims asserted by nonresident opt-in plaintiffs. The First Circuit’s decision thus creates a split among federal appeals courts and raises the prospect that the Supreme Court will ultimately have to resolve the issue.

Does the Federal Arbitration Act Preempt California’s Private Attorneys General Act? Supreme Court Takes Up Million-Dollar Question

On March 30, 2022, the Supreme Court of the United States will hear the matter of Viking River Cruises, Inc. v. Moriana, Case No. 20-1573. The Court will answer the question, “Whether the Federal Arbitration Act requires enforcement of a bilateral arbitration agreement providing that an employee cannot raise representative claims, including under PAGA.”

Supreme Court to Consider FAA Preemption of PAGA Claims

In a much-awaited decision, the Supreme Court of the United States indicated that it would consider whether the Federal Arbitration Act (FAA) preempts California’s rule prohibiting arbitration of Private Attorneys General (PAGA) claims under the California Labor Code. Depending upon the high court’s ultimate ruling, the case has the potential to upend wage and hour litigation in California.

California Court of Appeal Confirms Trial Courts’ Inherent Power to Strike or Limit Unmanageable PAGA Lawsuits

On September 9, 2021, a California Court of Appeal issued its ruling in Wesson v. Staples the Office Superstore, LLC, delivering a welcome victory to employers battling representative actions under the Private Attorneys General Act (PAGA). Under the 2004 law, an “aggrieved employee” is empowered to commence a PAGA representative action on behalf of all other “aggrieved employees” to seek civil penalties for alleged violations of the California Labor Code.

California Wage Theft Bill Would Raise the Stakes for Compliance

California Assembly Bill (AB) 1003 would create a new type of grand theft in the state: a company’s “intentional theft of wages” of more than $950 from any individual employee, or $2,350 total from 2 or more employees, in a 12-month period. The bill requires that the theft be intentional, through fraud and while knowing that the wages are due to the employee. The bill also defines “wages” to include “wages, gratuities, benefits, or other compensation.”

Supreme Court Provides Additional Guidance on FCRA Standing

On June 25, 2021, the Supreme Court of the United States issued a ruling that provides additional guidance related to the Fair Credit Reporting Act (FCRA), a federal law that regulates the collection of consumers’ credit information and access to their credit reports. In the employment context, the FCRA most frequently applies to background checks, including class actions alleging the most common background check claim—unlawful disclosure and authorization screens/forms (usually because of too much or too little information)—resulting in an informational injury.

California Supreme Court’s Decision on Premium Payments for Meal, Rest, and Recovery Break Violations

On July 15, 2021, the California Supreme Court issued a decision that will increase dramatically California employers’ potential liability for missed meal, rest, and recovery breaks. In Ferra v. Loews Hollywood Hotel, LLC, the court unanimously held that employers must pay premium payments to employees for missed meal, rest, and recovery breaks at the employee’s “regular rate of pay” instead of their base hourly rate, as many employers were doing.

California Court Affirms PAGA Claims Based on Cal/OSHA Violations: Are Further PAGA-Cal/OSHA Actions to Come?

In Sargent v. Board of Trustees of the California State University, the California Court of Appeal highlighted an important distinction between Private Attorneys General Act (PAGA) claims asserted against a public entity employer based on statutes that themselves provide for civil penalties and PAGA claims that are based on PAGA’s default civil penalties provisions under California Labor Code § 2699(f).