June 18, 2019

June 18, 2019

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June 17, 2019

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Delaware Court Declines To Apply California Labor Code Despite California Choice Of Law

Do California Labor Code provisions governing employees apply to persons performing work outside of California?  What if that work is performed pursuant to an agreement that includes the following provisions?

"The Parties shall comply with all laws and regulations applicable to their respective performance of this Agreement."

"This Agreement shall be governed by and construed in accordance with the laws of the State of California, without regard to that state's conflicts of law principles."

In Tressa v. CareFusion Sols., LLC, 2018 Del. Super. LEXIS 123, the Delaware Superior Court ruled that a choice-of-law clause alone is insufficient to permit Plaintiffs a cause of action under the California Labor Code.  The plaintiffs, however, are not entirely without a case because the Court later ruled that they had adequately alleged a quasi-contractual claim.  Ward v. CareFusion Sols., LLC, 2018 Del. Super. LEXIS 1557. 

The decision in Tressa is not binding on a California court and we will have to wait to find out whether a California court would take a different view.

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About this Author

Keith Paul Bishop, Corporate Transactions Lawyer, finance securities attorney, Allen Matkins Law Firm

Keith Paul Bishop is a partner in Allen Matkins' Corporate and Securities practice group, and works out of the Orange County office. He represents clients in a wide range of corporate transactions, including public and private securities offerings of debt and equity, mergers and acquisitions, proxy contests and tender offers, corporate governance matters and federal and state securities laws (including the Sarbanes-Oxley Act of 2002 and the Dodd-Frank Act), investment adviser, financial services regulation, and California administrative law. He regularly advises clients...