California’s high court on Thursday struck a decisive blow for payroll companies, finding that employees could not bring claims for their employers’ failure to pay wages under the state’s employee-friendly labor laws.

The California Supreme Court’s unanimous decision reverses a lower appellate court that had allowed Sharmalee Goonewardene to proceed with third-party breach-of-contract claims and claims of negligence and negligent misrepresentation against New Jersey-based ADP LLC, the outside company who handled payroll for Altour International Inc., the travel agency where she worked.

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