In a significant victory for employment plaintiffs, the 9th U.S. Circuit Court of Appeals on Tuesday held that employers cannot use choice-of-law contracts to avoid California labor regulations.

While workplace contracts may be subject to out-of-state law, actual workplace terms and conditions affecting workers in the Golden State are governed by California statutes, Senior District Judge Edward Korman wrote for the unanimous three-judge panel. Korman, of New York’s Eastern District, was sitting by designation.