On August 21, 2025, the California Supreme Court issued a significant decision in Iloff v. LaPaille that every employer should know. The Court reaffirmed that when it comes to wage and hour compliance, ignorance of the law is not a defense.

In that case, the employer prevailed at the trial court, with the judge reasoning that because both the employer and the employee were mistaken about the law, the employer should not be held liable for its wage and hour violations. The Supreme Court flatly rejected this argument, holding that “proof that the employer was ignorant of the law is insufficient.” Instead, employers must show they made a reasonable attempt to determine what the law required and that they acted in good faith to comply.

The takeaway is simple but critical: California employers must actively educate themselves on employment laws. They cannot rely on assumptions or its lack of knowledge.

We’ll be discussing this case and many other recent employment law developments at the upcoming free webinar presented by LimNexus Senior Counsel, Bethany J. Peak: Employment Law Update 2020–2026: New Workplace Laws and What’s Coming Next.