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THE RUBIN LAW CORPORATION MAKES LAW IN CALIFORNIA SUPREME COURT
On July 10, 2006, the California Supreme Court issued an important decision regarding wage payments that will certainly produce significant benefits to short-term and temporary employees now and in the years to come in the State of California. The Rubin Law Corporation appeared as co-counsel in this case together with a leading class action law firm.  The case was a victory for the employee plaintiff, the class represented, and for employees in general in the State of California. The case is Smith vs. L'Oreal USA, Inc., 39 Cal.4th 77 (2006). From the Labor Commission initially, all the way up to the California Supreme Court finally, this was a decision that was years in the making. The plaintiff, Amanza Smith, brought suit against the multinational cosmetic giant L’Oreal USA Inc. on behalf of herself and other models for failing to pay them promptly after participating in short term modeling events. Each model was hired for the day at the rate of $500, but L’Oreal did not pay them until over two months after the show. The Supreme Court unanimously found for the plaintiffs, interpreting the word “discharge” in the wage provisions of the Labor Code to include release of an employee upon expiration of the agreed-upon employment term– in Ms. Smith’s case, one day. By broadening the interpretation the appellate court provided (“discharge” covered only terminations and layoffs), the Supreme Court extended protection to an entire class of employees who previously could not find recourse for long-unpaid wages within these provisions of California law. Short-term and temporary employees who have not promptly been paid after expiration of their term of employment can now bring suit against the employer for payment of the wages. Under the California Labor Code, the employee is also entitled to collect wages at the daily rate from the time of the discharge until the employer has paid, for a period of up to 30 days. Undoubtedly, the Supreme Court’s ruling will have a positive impact on aggrieved employees who were previously left with little protection under California law.
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