California Employment Law Notes - March 2016

Nuclear Plant Maintenance Manager's Whistleblower Claim Was Properly Dismissed

Sanders v. Energy Northwest, 2016 WL 560809 (9th Cir. 2016)

David W. Sanders, a maintenance manager for Energy Northwest (a nuclear power plant), claimed his employment was terminated in retaliation for his objection to the severity level designation of an internal "condition report" that was generated by other employees at the plant. Sanders filed a whistleblower complaint with the Department of Labor (the "DOL"), and when the DOL failed to issue a final decision within one year, Sanders filed a complaint in federal court, alleging he was retaliated against for objecting about a "nuclear safety issue." The district court granted summary judgment in favor of Energy Northwest on the ground that Sanders failed to establish a case of retaliation because his activity did not "rise to the level of protected activity" under the Energy Reorganization Act. The United States Court of Appeals for the Ninth Circuit affirmed dismissal on the ground that "Sanders' single expression of a difference of opinion [concerning] one existing internal condition reports lacks a sufficient nexus to a concrete, ongoing safety concern." See also Austin v. Los Angeles Unified School Dist., 2016 WL 527175 (Cal. Ct. App. 2016) (denial of alleged whistleblower's motion for relief after the trial court granted former employer's unopposed motion for summary judgment is reversed, remanded for consideration on the merits).

Employer Was Entitled To Obtain Reimbursement Of Short-Term Employee's Training Costs

USS-POSCO Indus. v. Case, 197 Cal. Rptr. 3d 791 (Cal. Ct. App. 2016)

Floyd Case voluntarily enrolled in a three-year, employer-sponsored educational program. Case agreed in writing that if he quit his job within 30 months of completing the program, he would reimburse his employer (UPI) a prorated portion of the program costs. Two months after completing the program, Case went to work for another employer. When Case refused to reimburse UPI, the company sued him for breach of contract and unjust enrichment. In response, Case cross-complained against UPI, asserting a putative class action in which he claimed the reimbursement agreement was unenforceable and that it violated the Labor Code. The trial court granted UPI's motion for summary judgment on its own claims and on Case's cross-complaint, holding that the reimbursement agreement was valid and not unlawful under any theory Case had raised...