Business Law Journal

In modern business, nearly every employee and executive has access to, and uses a computer on a regular basis.  In line with this, employers expect that work computers will be used solely for work, and that work e-mail accounts are property of the employer, not the individual employee or officer.  However, a recent decision by the California Court of Appeal found that something more is required:  without a clear policy in place prohibiting the use of an employer’s e-mail accounts for personal purposes and informing employees that their work e-mail accounts are subject to review, an employer may be prohibited from doing so, and evidence collected in that manner may be inadmissible if a dispute arises.  What’s more, your lawyer may be prevented from representing you in any disputes with the employee whose e-mail account you accessed if these proper protections are not in place.

The California Supreme Court has rejected an emergency constitutional challenge filed by drivers for Uber, Lyft and other app-based companies and various unions requesting that the Court declare the voter-approved Proposition 22 unconstitutional.  Proposition 22 (“Prop 22”) permits some app-based gig ride-hailing and delivery companies to continue to classify workers as independent contractors despite California’s adoption of the stringent ABC test for worker classification (discussed here).  The union-backed challenge to Prop 22 was not decided on the merits and continued legal activity challenging Prop 22 is expected.  The lawsuit is entitled Hector Castellanos, et al. v. State of California, et al., Case Number S266551.

On September 2, 2020, the Ninth Circuit Court of Appeals ruled in Frlekin v. Apple, Inc. (Case No. 15-17382) that Apple must compensate a certified class of California non-exempt employees for time spent waiting for, and submitting to, bag searches required by Apple’s policies. 

This decision underscores the need for employers to be vigilant in ensuring compliance with California’s complex framework of wage and hour laws, and, perhaps more importantly, the importance of minimizing class action exposure through carefully-drafted arbitration agreements.