California employment law had a very active year in 2022, with a slew of new laws and important cases, especially in the areas of arbitration, employee classification and statutory leave. Will these trends continue in 2023? What should HR professionals and employers expect in the next year in legal compliance?
"Following the pandemic, courts got so backlogged for so long," said Ryan Crosner, an attorney with Ogletree Deakins in Los Angeles. "In 2023, there will be a lot more trials than we had in the last few years. Courts are starting to clear their dockets. I predict it's going to be a really busy year" in employment law.
Some banks and business executives are predicting an economic downturn or recession in 2023. Employers could see lots of litigation if there are plenty of big layoffs in California during an economic downturn or recession next year, just "like we did during the Great Recession," Crosner said.
PAGA
California's Private Attorneys General Act (PAGA) authorizes individuals to file lawsuits to recover civil penalties on behalf of themselves, other employees and the state of California for labor code violations.
This topic came up frequently in court cases this year, including a case in which the U.S. Supreme Court ruled that the Federal Arbitration Act pre-empts PAGA, allowing companies to compel arbitration of individual claims regarding labor code violations. The court found that if an individual PAGA claim is sent to arbitration, the individual will lack...
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