Labor/Employment,
California Supreme Court
Jan. 4, 2019
High court weighing liability of payroll-service providers
Whichever way the California Supreme Court decides will have monumental ramifications for the competitive and fragmented payroll processing industry in California.
Andy Y. Chen
Associate
Murphy Pearson Bradley & Feeney
Email: achen@mpbf.com
Andy represents individuals and businesses in all phases of civil litigation with a focus on professional liability, employment law, and commercial litigation.
The California Supreme Court case Goonewardene (Sharmalee) v. ADP, LLC, et al., S238941, asks whether employees are third-party beneficiaries of their employers' contracts with payroll-service providers. Following nearly 50 minutes of oral argument last month, it remains unclear how broad a precedent the high court is willing to set for a payroll-service provider's duty to ensure accurate payment of wages for the average worker.
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