In a long-awaited decision, the California Supreme Court in Duran v. U.S. Bank National Association, S200923 (May 29, 2014), clarified California's standard for certifying class actions in employee misclassification cases. In doing so, the Court issued badly needed guidance to trial courts deciding whether employee wage class actions may be certified (or remain certified) as class actions. While the Court's standard is not identical to that set forth in the U.S. Supreme Court's recent decisions, Wal-Mart Stores, Inc. v. Dukes, 131 S. Ct 2541 (2011) and Comcast v. Behrend, 133 S. Ct. 1426 (2013), Duran is a major step in bringing California's law on class certification in line with the standards prevailing at the federal courts and in other states. 

Duran's effect will be far-reaching. The Court's rigorous and sensible analysis requires trial courts to conduct a far more thorough analysis at the time of class certification concerning the practical means by which individual defenses to class claims can be resolved, including a realistic trial plan that permits employers to litigate individual liability defenses. Although the decision did not expressly overrule any prior authority, its reasoning suggests that many cases in recent years applying vague and soft standards for certification of employee wage class actions may no longer be good law. The result will likely be a fairer playing field for employers in litigation over certification of employee class actions. Continue reading this article here.