An employer is required to show that it made a reasonable attempt to determine the requirements of California’s minimum wage law in order to assert a good faith defense.
Reversing a lower court’s ruling in favor of an employer on issues concerning liquidated damages and paid sick leave, the California Supreme Court determined that an employer could not plead ignorance of the law in order to assert a good faith defense with regard to minimum wage laws, and a court may consider a paid sick leave claim that an employee raises in the context of their employer’s appeal to the superior court of a Labor Commissioner ruling (Iloff v. LaPaille, No. S275848 (Cal Sup. Ct. Aug. 21, 2025)).
The employee in this case lived and worked in an unincorporated area of Humboldt County known as Bridgeville, on property owned by Bridgeville Properties, Inc., and overseen by a manager. The employee performed maintenance work on the property and, under an informal arrangement, was allowed to live rent-free in one of the employer’s houses. He was not otherwise compensated for his services.
Claims. After the employer terminated this arrangement, the employee filed claims against it with the Labor Commissioner, initiating a process for adjudicating wage claims informally known as “the Berman process.” The employer argued that the employee was an independent contractor, but the Labor Commissioner determined that he was an employee and as such, was entitled to unpaid wages, liquidated damages,...
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