New California case, Goonewardene v. ADP, LLC, holds that an employee may not maintain a cause of action for unpaid wages against a third party handling payroll processing for breach of contract, negligence, or negligent misrepresentation.
Recent California Case
In a recent California case, Goonewardene v. ADP, LLC, the plaintiff brought a lawsuit against ADP, a payroll service provider, for wrongful termination, violations of state and federal labor laws, breach of contract, false advertisement, negligence, and negligent misrepresentation. Plaintiff’s former employer had contracted with ADP to provide wage processing services, and under this contract, plaintiff argued that ADP became their employer. While the California Court of Appeal held that the plaintiff could proceed with their claims against ADP based on negligent performance for payroll services, the California Supreme Court reversed, finding that plaintiff could not be a third party beneficiary for ADP’s employment contract.
#employmentlaw #payroll #Eskridgelaw
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