Firm News

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 was co-counsel in achieving this 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 long hard fight that took years. 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.

Should I Try to Settle My Case Prior to Filing A Lawsuit?

We are asked this question frequently. And the answer in most cases is a resounding, Yes! Let me explain. First, apart from turning around quickly, the settlements that occur prior to filing in Court can be reasonably large. For example, we recently settled a wrongful termination case in only 3 months, prior to even filing in Court, for an amount exceeding $615,000. This settlement involved mobilizing medical records, medical opinions, psychological records, and the testimony of experts-- but it was all done in context of a mediation presided over by a neutral Mediator in a period of only 3 months! Second, apart from being speedy, and well compensated, these mediations can involve far lower costs. Avoided too are all the costs of depositions, the far heavier costs of experts at deposition and trial, the costs of transcripts, and the higher rate for attorneys after a complaint is filed in court. So your net or bottom line will not be diminished by the same level of costs. The time value of money will also be on your side. Finally, you get to move on with your life. And you don not have to worry about all the time and the uncertainties that attend a protracted lawsuit. Of course, each case is different, and each case has its own settlement value.

And, of course, not all cases can settle without a court fight and without court ordered discovery. But even in the many instances when you do have to go to court, a pre-court round of settlement negotiations can be invaluable to a later settlement, and also in understanding your case. In California, most employment cases are ordered into mediation after the first round of depositions are taken. The fact that the parties have already opened a dialogue may be valuable later. Sometimes, the parties are so polarized from the start that it is futile to even attempt a settlement without first filing a lawsuit. And in some occasions there are other factors (eg insurance, or important documents or other evidence controlled by the defendants) which might tilt the balance in favor of filing first and asking for settlement later. But quite often it is best to first attempt negotiation, and then to go to war, if the negotiation is unavailing. At the Rubin Law Corporation we have been involved in hundreds of mediations and regularly utilize retired judges and skilled attorney mediators to get disputes resolved early and well.