California Supreme Court Addresses Good-Faith Defense for Minimum Wage Violations and Enforcement of Paid Leave Obligations 

In Iloff v. LaPaille (Aug. 2025), the California Supreme Court clarified two key issues. First, liquidated (double) damages for minimum wage violations are not automatic: employers may avoid them only by showing a documented, reasonable effort to comply with wage laws. Mere ignorance is insufficient.

Second, employees cannot sue directly under the Healthy Workplaces, Healthy Families Act, but may pursue claims through the Labor Commissioner, the Unfair Competition Law, or PAGA. For employers, the message is clear—classify carefully, document compliance efforts, and preserve records to demonstrate good faith if wage or paid leave disputes arise.