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California Supreme Court Upholds Undocumented Immigrants Right to Relief Under
States Labor and Employment Laws
July 29, 2014
Last week, the California Supreme Court addressed whether undocumented immigrants may pursue
state law claims of discrimination against their employers. In Salas v. Sierra Chemical, the court held
that California Senate Bill 1818, which provides state law protections and remedies to all California
workers regardless of immigration status, is preempted by the Federal Immigration Reform and Control
Act of 1986 (IRCA) only in regards to the award of damages for back pay after an employer learns of a
workers employment ineligibility. Aside from this limited exception disallowing back-pay awards after
employer knowledge of undocumented status, undocumented California workers are now entitled to
pursue claims for retaliation and discrimination against their employers.


The court further held that IRCA does not preempt California state laws with regard to employees
seeking damages between the time the employee is terminated and the time when the employer
discovers the employees employment ineligibility. However, it also held that IRCA preempts California
state law where state law would require payment of wages after an employer learns of a workers
undocumented status. Importantly, the court limited its analysis to employers who learn of a plaintiffs
unauthorized status after the employee has been discharged. Where an employer knowingly employs
or continues to employ unauthorized workers, IRCA does not preempt state law protections, and
unauthorized workers are entitled to the same wage remedies available to all California workers,
including back pay.


Although the federal preemption issues in Salas may be appealed to the United States Supreme Court,
California employers must be prepared to operate under the courts current interpretation. Now, more
than ever, California employers can significantly limit their exposure to liability by ensuring compliance
with IRCAs I-9 employment authorization and document retention requirements for each employee.

The courts ruling can be found at: http://www.courts.ca.gov/opinions/documents/S196568.PDF

Additional Information
For more information about these decisions relating to labor and employment laws, or if you would like
assistance in evaluating your compliance with IRCA employment authorization requirements, please
contact your Kutak Rock attorney or the author of this alert listed in the right-hand column.
Related Files
CLIENT ALERT - Undocumented Immigrant Right to Relief
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