Mediator’s Minute: Highlights from the California Lawyers Association 16th Annual Advanced Wage and Hour Conference

Photo Credit: Shireen Wetmore

The California Lawyers Association’s (CLA) 16^th Annual Advanced Wage and Hour Conference brought together top attorneys from across California to discuss the latest trends in wage and hour class and PAGA matters.  There was representation from both the plaintiff and defense bars, the LWDA, judges, and, of course, mediators. 

Hosted by the Labor and Employment Law Section of CLA, this annual gathering has some of the best California-specific wage and hour programming around and this year was no exception.  Below are some highlights from the conference, which ranged from legal updates to mediation trends and everything in-between.

The Current State of CA Wage and Hour Law

The opening panel included an excellent analysis of recent cases presented by Rachel Terp, a plaintiffs’ attorney with Terp Law, and Alex Stathopoulos, a defense attorney with Orrick, Herrington & Sutcliffe LLP.  The two had a fantastic banter as they walked us through the key holdings in some of the past year’s most consequential cases—some seeming to settle old questions, but many laying the foundation for splits of authority that are likely to be litigated throughout the rest of 2026 and beyond.

PAGA Cases Going Up, Up, Up

The Labor and Workforce Development Agency (LWDA) was represented by Todd Ratshin, who shared that PAGA filings continue to increase year-over-year, while relatively few appear to be going through the early evaluation conference process.  Instead, practitioners shared that the majority of these cases continue to be mediated, while plaintiff’s attorney Elliot Siegel shared his observation that those defendants that do initiate the early evaluation conference tend to do so for the purpose of expediting mediation and settlement. 

One interesting insight (among many) was that the LWDA looks less favorably on cases that include OSHA/workplace safety allegations, but that are not filed until close to the statute of limitations deadline.  The LWDA also emphasized that it continues to be focused on PAGA regulations aimed at curbing “generic” notices, particularly where worker safety is involved.

All About Arbitration

Another big theme throughout the panels was arbitration.  Is it worth it from the defense perspective?  What, if any, preclusive effect does an arbitral award have on a stayed representative PAGA matter?  What level of activity qualifies for the transportation exemption?  Under what circumstances will arbitration agreements be read together with employment agreements?  Recent decisions have placed these questions front and center.  See, e.g., Flowers Foods, Inc. v. Brock, 146 S. Ct. 1358 (2026) (discussing the interstate commerce exemption in the context of last-mile drivers); compare Sorokunov v. NetApp, Inc., 118 Cal.App.5th 1009 [A171964] (2026) (arbitral award has preclusive effect on PAGA claim), with Prime Healthcare Management, Inc. v. Super. Ct., (Cal. App. 4th, Dec. 15, 2025, E085200) (denying writ of mandamus and finding arbitral award on substantive Labor Code claims not preclusive as to PAGA claim).  Yet in several instances, as in the preclusive effect of arbitration on stayed representative PAGA matters, recent decisions seem to create more confusion.

However, one aspect of arbitration was definitively settled in the past 12 months with the passage of AB2155.  Governor Newsom signed this bill into law on June 30, 2026 and it becomes effective on January 1, 2027.   The result of lobbying from the plaintiff’s bar, this bill aligns the California Arbitration Act with the Federal Arbitration Act, with the express aim of closing any gaps between enforceability of arbitration agreements under these two statutes.

Mediation Trends

While the mediation panel was chock full of great tips for practitioners, I want to focus on two of them here.  First, all three panelists highlighted a trend of cases not settling.  They attributed this to a variety of factors, but key among those was preparation.  The presenters highlighted that they were seeing settlements impeded where counsel or one or more of the parties were not prepared for mediation.  Specifically, they spoke of the emotional aspect of mediation preparation that can be just as important as crafting thoughtful briefs or making complex legal arguments. 

When a party does not fully understand the mediation process or is not emotionally prepared to address the issues that will be raised in mediation, it slows down the process and can impact that party’s ability to reach a resolution of the case.  In short, counsel and the parties should be prepared for the emotional journey that is mediation.  (This is also why my mediations always include pre-mediation calls, to give the parties and their counsel the opportunity to raise any such issues that might impede resolution and to allow us to tackle those issues head-on.)

Second, the panelists shared their thoughts on what builds credibility in mediation.  This one might surprise you.  The consensus was that lawyers who concede points are far more credible and persuasive than attorneys who insist that something “always” or “never” happened.  For example, employers that insist their policies were fully compliant and always followed to the letter or employees who claim they never received a rest break.  I have personally observed this.  Attorneys who are open with me in mediation make space for resolution because we can work together to address the case’s weaker points while still emphasizing that party’s strengths.  It regularly leads to faster agreement on key terms in settlement negotiations and deflates some of the tension that can arise in mediation.  For your next mediation, I would encourage you to think in advance about the points you want to concede—it might just be what puts your client’s arguments in the strongest position.

The Tip of the Iceberg

There were too many takeaways to highlight them all here.  I will share some additional case insights in future posts.  In the meantime, a huge thank you to CLA, the presenters, and all of the folks who put together this year’s excellent Advanced Wage and Hour Conference.

Shireen Wetmore is a mediator specializing in complex employment matters and can be reached for questions, comment, or booking at www.shireenwetmoremediation.com.  

This Mediator’s Minute is for informational purposes only and does not constitute legal advice.