On December 9, 2025, the California Court of Appeal, Third Appellate District, issued a published decision in Sierra Pacific Industries Wage and Hour Cases, affirming the trial court’s denial of Sierra Pacific Industries’ motion to compel arbitration and upholding the imposition of evidentiary and issue sanctions for discovery violations in a wage and hour class action. The decision provides important guidance on the waiver of arbitration rights through litigation conduct and the appropriateness of discovery sanctions in complex employment litigation.

Quick Hits

• The California Court of Appeal, Third Appellate District, affirmed that Sierra Pacific Industries waived its right to compel arbitration by engaging in years of litigation conduct inconsistent with an intent to arbitrate, including failing to timely produce signed arbitration agreements and participating in extensive class discovery involving employees subject to arbitration.
• The court applied the waiver standard articulated in Quach v. California Commerce Club, Inc., focusing on whether Sierra Pacific’s conduct was so inconsistent with an intent to enforce arbitration rights as to constitute intentional relinquishment, rather than relying on the previously used multifactor test from St. Agnes Medical Center v. PacifiCare of California.
• The appellate court dismissed Sierra Pacific’s appeal of the trial court’s order imposing evidentiary and issue sanctions, finding such orders are not directly appealable under...

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