A Section 998 offer is invalid if it purports to settle a claim concerning undisputed unpaid compensation.
August 31, 2021, Second District Court of Appeal, Subino Wasito v. Adi Kazali: Wasito and another employee filed a complaint against Kazali seeking unpaid wages. Kazali made a Code of Civil Procedure section 998 offer of $300,000. Thereafter, Kazali paid the employees $75,876.90 for unpaid bonuses, and the case went to trial at which the jury awarded the employees $2,265.32. The trial denied Kazali costs on grounds the section 998 offer violated Labor Code section 206.5 by withholding undisputed compensation while attempting to settle the claims. The court of appeal affirmed because Kazali conceded the bonuses were owed but failed to pay them and instead made a section 998 offer.
Employer’s preferential treatment toward a supervisor’s romantic partner is not sex discrimination.
August 20, 2021, Ninth Circuit Court of Appeals, William Maner v. Dignity Health: The Ninth Circuit addressed the issue of whether an employer who exhibits preferential treatment toward a supervisor’s sexual or romantic partner discriminates against other employees because of their sex. The appellate court concluded that discrimination motivated by an employer’s “paramour preference” is not unlawful sex discrimination within the meaning of federal law (Title VII).