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No. 10653920
United States Court of Appeals for the Ninth Circuit
Renteria-Hinojosa v. Sunsweet Growers, Inc.
No. 10653920 · Decided August 14, 2025
No. 10653920·Ninth Circuit · 2025·
FlawFinder last updated this page Apr. 2, 2026
Case Details
Court
United States Court of Appeals for the Ninth Circuit
Decided
August 14, 2025
Citation
No. 10653920
Disposition
See opinion text.
Full Opinion
FOR PUBLICATION
UNITED STATES COURT OF APPEALS
FOR THE NINTH CIRCUIT
ANNAMARIE RENTERIA- Nos. 23-3379
HINOJOSA, 23-4335
D.C. Nos.
Plaintiff - Appellee,
2:23-cv-01413-
DJC-DB
v.
2:23-cv-01673-
DJC-DB
SUNSWEET GROWERS, INC., a
California Corporation,
OPINION
Defendant - Appellant.
Appeal from the United States District Court
for the Eastern District of California
Daniel J. Calabretta, District Court, Presiding
Argued and Submitted October 24, 2024
San Francisco, California
Filed August 14, 2025
Before: John B. Owens, Jennifer Sung, and Gabriel P.
Sanchez, Circuit Judges.
Opinion by Judge Sung
2 RENTERIA-HINOJOSA V. SUNSWEET GROWERS, INC.
SUMMARY *
Labor Law / Removal and Remand
The panel affirmed the district court’s orders remanding
two removed actions to state court after concluding that
Annamarie Renteria-Hinojosa’s remaining state law claims
against her employer, Sunsweet Growers, Inc., were not
preempted by § 301 of the Labor Management Relations
Act.
The panel held that it had jurisdiction to review the
remand orders because, under 28 U.S.C. § 1447(c), the bar
on appellate review of remand orders set forth in § 1447(d)
applies only to remands based on a defect in removal
procedure or lack of subject matter jurisdiction. The parties
correctly agreed that the district court’s remand was not
based on a defect in removal procedure. The panel
concluded that the remand also was not based on a lack of
subject matter jurisdiction because, after dismissing federal
§ 301 untimely-wage claims for failure to exhaust grievance
procedures under a collective bargaining agreement, the
district court, in its discretion, declined supplemental
jurisdiction over the remaining state law claims. The panel
held that the exhaustion requirement for § 301 claims is not
jurisdictional. In addition, where the district court exercised
its discretion to decline supplemental jurisdiction, its remand
order was not based on a lack of subject matter
jurisdiction. The panel therefore had jurisdiction to review
the remand orders in their entirety, including the district
*
This summary constitutes no part of the opinion of the court. It has
been prepared by court staff for the convenience of the reader.
RENTERIA-HINOJOSA V. SUNSWEET GROWERS, INC. 3
court’s conclusions that Renteria-Hinojosa’s remaining state
law claims were not federal § 301 claims.
The panel affirmed the district court’s conclusion that the
remaining claims were not preempted by § 301, which
preempts a plaintiff’s state law claim where the claim
(1) arises entirely from a collective bargaining agreement or
(2) requires interpretation of the agreement. At step one,
Renteria-Hinojosa’s claims did not arise exclusively from
the parties’ collective bargaining agreements, but rather
from California statutes and regulations prohibiting unfair
business practices and retaliation and requiring employers to
provide minimum wages, overtime pay, paid sick days,
accurate itemized wage statements, reimbursement for
necessary expenditures, meal and rest periods, and adequate
seating. At step two, Renteria-Hinojosa’s claims for
overtime pay, sick leave pay, and meal and rest breaks were
not preempted because they did not require interpretation of
the collective bargaining agreements. Sunsweet’s argument
that all of Renteria-Hinojosa’s claims were preempted
because of the dispute resolution provisions in the collective
bargaining agreements was precluded by Caterpillar, Inc. v.
Williams, 482 U.S. 386 (1987), which holds that a defendant
cannot create removal jurisdiction under § 301 by invoking
a collective bargaining agreement as a defense. The panel
concluded that Renteria-Hinojosa’s claims under
California’s Private Attorneys General Act were not
preempted.
The panel held that the district court did not abuse its
discretion in deciding to remand the remaining state law
claims to state court, instead of exercising supplemental
jurisdiction over these claims.
4 RENTERIA-HINOJOSA V. SUNSWEET GROWERS, INC.
COUNSEL
Glenn A. Danas (argued), Clarkson Law Firm PC, Malibu,
California; Katelyn Leeviraphan, Clark Hill PLC, Los
Angeles, California; Christine T. LeVu, Norman B.
Blumenthal, Kyle R. Nordrehaug and Aparajit Bhowmik,
Blumenthal Nordrehaug Bhowmik De Blouw LLP, La Jolla,
California; for Plaintiff-Appellee.
Dominic E. Draye (argued) and Jessica D. Kemper,
Greenberg Traurig LLP, Phoenix, Arizona; Timothy J. Long
and Michael A. Wertheim, Greenberg Traurig LLP,
Sacramento, California; for Defendant-Appellant.
OPINION
SUNG, Circuit Judge:
Plaintiff-Appellee, Annamarie Renteria-Hinojosa,
brought two actions against her employer, Sunsweet
Growers, in state court. In each action, Renteria-Hinojosa
alleges that Sunsweet violated California’s Business and
Labor Codes. Sunsweet removed both actions to federal
court, arguing that Renteria-Hinojosa’s state law claims are
preempted by § 301 of the Labor Management Relations Act
(“LMRA”), 29 U.S.C. § 185(a). For both actions, the district
court concluded that one of Renteria-Hinojosa’s claims is
preempted and dismissed that claim for failure to exhaust the
applicable dispute resolution procedure. The district court
concluded that her remaining state law claims are not
preempted and remanded them to state court. Sunsweet
timely appealed the remand orders. On appeal, Sunsweet
contends the district court erred in concluding that the
RENTERIA-HINOJOSA V. SUNSWEET GROWERS, INC. 5
remaining state law claims are not preempted and remanding
them. Renteria-Hinojosa argues we lack jurisdiction to
review the remand orders, and in the alternative, that the
district court did not err. We conclude that we have
jurisdiction to review the district court’s remand orders, and
we affirm. The district court correctly concluded that
Renteria-Hinojosa’s claims are not preempted by § 301, and
it did not abuse its discretion in declining to exercise
supplemental jurisdiction over these claims.
I. BACKGROUND
Sunsweet is a California corporation that grows and
processes prunes. Renteria-Hinojosa worked for Sunsweet
from 2018 to 2023. During that period, she was represented
by the International Brotherhood of Teamsters, Teamsters
Cannery Workers and Warehouse Union Local 856 (the
“Union”), and her employment was governed by two
successive collective bargaining agreements (“CBAs”)
between the Union and Sunsweet. 1 Each CBA set forth
various requirements regarding overtime pay, sick leave, and
meal and work breaks, among other things. Additionally,
each CBA included a dispute resolution provision specifying
the procedure for employee grievances.
In April 2023, Renteria-Hinojosa filed a putative class
action against Sunsweet in California state court alleging
violations of California’s Business and Labor Codes.
Specifically, she alleges that Sunsweet (1) committed
unlawful business practices, (2) failed to pay minimum
wages, (3) failed to pay overtime compensation, (4) failed to
1
The first CBA was initially effective from January 1, 2017 to December
31, 2019, and was subsequently extended until February 28, 2021. The
second CBA was effective from March 1, 2021 to December 31, 2023.
6 RENTERIA-HINOJOSA V. SUNSWEET GROWERS, INC.
provide required meal and rest periods, (5) failed to provide
accurate itemized wage statements, (6) failed to reimburse
employees for required expenses, (7) failed to accurately or
timely pay sick wages, (8) failed to provide adequate
seating, and (9) retaliated against her for reporting
harassment and discrimination. 2
In June 2023, Renteria-Hinojosa filed a corresponding
action against Sunsweet in state court under California’s
Private Attorneys General Act (“PAGA”). PAGA provides
a private cause of action for employees to sue their
employers, on behalf of themselves and other employees, for
violations of the California Labor Code. Cal. Lab. Code
§§ 2698 et seq. Renteria-Hinojosa’s PAGA action alleges
the same California Labor Code violations raised in her class
action, except her PAGA action does not allege retaliation.
Sunsweet removed both actions to federal court,
asserting federal question jurisdiction on the ground that
Renteria-Hinojosa’s claims are preempted by § 301 of the
LMRA. Sunsweet further asserted that, if the district court
determined that any claims are not preempted, the court
should exercise supplemental jurisdiction over those claims
under 28 U.S.C. § 1367. Sunsweet then moved to dismiss
both actions, arguing that each state law claim should be
dismissed as preempted, or, in the alternative, because the
CBA required Renteria-Hinojosa to pursue her claims
through arbitration. Renteria-Hinojosa opposed dismissal
and moved to remand both actions to state court.
2
Although the class action complaint includes factual allegations
regarding Sunsweet’s failure to provide adequate seating, it does not
specifically state a cause of action for this violation.
RENTERIA-HINOJOSA V. SUNSWEET GROWERS, INC. 7
The district court dismissed in part and remanded in
part. 3 The court concluded that Renteria-Hinojosa’s claims
regarding untimely wages are preempted by § 301, but that
all other claims are not preempted. The court explained that,
because these untimely-wage claims are preempted, they are
properly construed as federal § 301 claims arising under the
CBAs. The court then dismissed those claims on the ground
that Renteria-Hinojosa failed to allege that she had
exhausted CBA dispute resolution procedures. 4 Finally, the
court concluded that “[b]ecause the only claim over which
the [c]ourt would have jurisdiction must be dismissed,” it
“should not retain [supplemental] jurisdiction” over the
remaining, non-preempted claims. The court then remanded
those claims to state court.
Sunsweet timely appealed the district court’s remand
orders, and the appeals were consolidated. Renteria-
Hinojosa does not challenge the district court’s dismissal of
her untimely-wage claims on appeal. Thus, the issues before
us are (1) whether Renteria-Hinojosa’s remaining claims are
preempted by § 301, and (2) whether the district court
abused its discretion in remanding her remaining claims to
state court. But before we can address these issues, we must
first determine whether we have jurisdiction to review the
3
Because the district court incorporated the reasoning from the class
action order into the PAGA action order, we refer to the orders together.
4
The district court concluded that Renteria-Hinojosa failed to exhaust
because she had “not alleged that she exhausted her claims under the
grievance procedure,” and her counsel “confirmed” at oral argument
before the district court “that she would not be able to allege that she
engaged in any portion of the grievance procedure” if given leave to
amend her complaint. Renteria-Hinojosa does not contest these
determinations on appeal.
8 RENTERIA-HINOJOSA V. SUNSWEET GROWERS, INC.
district court’s remand orders, and if so, the permissible
scope of our appellate review.
II. APPELLATE JURISDICTION OVER REMAND
ORDERS
We review our appellate jurisdiction de novo. United
States ex rel. Alexander Volkhoff, LLC v. Janssen
Pharmaceutica N.V., 945 F.3d 1237, 1241 (9th Cir. 2020).
28 U.S.C. § 1447(d) states: “An order remanding a case to
the State court from which it was removed is not reviewable
on appeal or otherwise,” with statutory exceptions not
relevant here. 5 At first glance, § 1447(d) seems to bar our
review of the district court’s remand orders. But in
Thermtron Products, Inc. v. Hermansdorfer, the Supreme
Court held that § 1447(d)’s bar on appellate review must be
construed together with § 1447(c), which sets forth
procedural rules for remands based on “defect[s]” in removal
or a “lack of subject matter jurisdiction.” 28 U.S.C.
§ 1447(c); see 423 U.S. 336, 345 (1976), abrogated on other
grounds by Quackenbush v. Allstate Ins. Co., 517 U.S. 706
(1996). Reading § 1447(c) and (d) together, the Court held
that “only remand orders issued under § 1447(c) and
invoking the grounds specified therein that removal was
improvident and without jurisdiction are immune from
5
Section 1447(d) includes exceptions for appellate review of cases
removed under 28 U.S.C. §§ 1442 or 1443. Sunsweet removed under
§§ 1441, 1446, and 1453(b). Section 1453 allows a court of appeals to
“accept an appeal from an order of a district court granting or denying a
motion to remand a class action to the State court from which it was
removed if application is made to the court of appeals not more than 10
days after entry of the order.” We do not consider whether this exception
applies here because Sunsweet did not address this provision in its
briefing, and, in any event, Sunsweet appealed both district court remand
orders after this 10-day deadline.
RENTERIA-HINOJOSA V. SUNSWEET GROWERS, INC. 9
review under § 1447(d).” Id. at 346. In other words,
§ 1447(d)’s bar on appellate review “applies only to remands
based on the grounds specified in § 1447(c), that is, a defect
in removal procedure or lack of subject matter jurisdiction.”
Kircher v. Putnam Funds Tr., 547 U.S. 633, 640 (2006).
Accordingly, we must determine whether the district
court’s remand in this case was based on either a defect in
removal procedure or lack of subject matter jurisdiction. As
the parties agree, the court’s remand was not based on a
defect in removal procedure. The principal question for our
jurisdiction, therefore, is whether the district court’s remand
was based upon a lack of subject matter jurisdiction.
The district court’s remand orders proceeded from three
determinations. The district court first concluded that, under
§ 301, Renteria-Hinojosa’s untimely-wage claims are
preempted and therefore properly construed as federal
claims for violations of the CBAs. 6 The parties do not
6
Section 301 confers federal subject matter jurisdiction over suits for
violations of labor contracts. 29 U.S.C. § 185(a); Textron Lycoming
Reciprocating Engine Div., Avco Corp. v. United Auto., Aerospace,
Agric. Implement Workers of Am., 523 U.S. 653, 656 (1998). The
Supreme Court has recognized that the “preemptive force of § 301 is so
powerful as to displace entirely any state cause of action for violation of
contracts between an employer and a labor organization.” Franchise Tax
Bd. v. Constr. Laborers Vacation Tr. for S. Cal., 463 U.S. 1, 23 (1983)
(internal quotation marks omitted). “Once preempted, ‘any claim
purportedly based on [a] . . . state law is considered, from its inception,
a federal claim, and therefore arises under federal law.’” Burnside v.
Kiewit Pac. Corp., 491 F.3d 1053, 1059 (9th Cir. 2007) (quoting
Caterpillar, Inc. v. Williams, 482 U.S. 386, 393 (1987)); see also Allis-
Chalmers Corp. v. Lueck, 471 U.S. 202, 220 (1985). In other words,
§ 301 preemption transforms a state law claim into a federal claim for
the violation of a collective bargaining agreement, within the original
subject matter jurisdiction of federal courts.
10 RENTERIA-HINOJOSA V. SUNSWEET GROWERS, INC.
challenge the district court’s decision to convert Renteria-
Hinojosa’s untimely-wage claims into federal claims. Nor
do they dispute that § 301 provides federal subject matter
jurisdiction over such claims. See Burnside, 491 F.3d at
1059; Caterpillar, 482 U.S. at 393. The district court then
dismissed these federal untimely-wage claims for failure to
exhaust CBA grievance procedures. 7 Finally, the district
court concluded that Renteria-Hinojosa’s remaining state
law claims are not preempted by § 301, and it remanded
those claims to state court.
As explained below, the district court had discretion to
decline supplemental jurisdiction over these remaining state
law claims; it was not required to remand them for lack of
subject matter jurisdiction. Per 28 U.S.C. § 1367(a), “in any
civil action of which the district courts have original
jurisdiction, the district courts shall have supplemental
jurisdiction over all other claims that are so related to claims
in the action within such original jurisdiction that they form
part of the same case or controversy under Article III.”
Supplemental jurisdiction “may only be invoked” under this
provision “when the district court has a hook of original
jurisdiction.” Herman Fam. Revocable Tr. v. Teddy Bear,
7
“As a general rule in cases to which federal law applies, federal labor
policy requires that individual employees wishing to assert contract
grievances must attempt use of the contract grievance procedure agreed
upon by employer and union as the mode of redress.” Republic Steel
Corp. v. Maddox, 379 U.S. 650, 652 (1965). Where, as here, the court
converts an employee’s state law claim into a § 301 claim, the exhaustion
requirement applies to the converted claim. Lueck, 471 U.S. at 220–21;
Kobold v. Good Samaritan Reg’l Med. Ctr., 832 F.3d 1024, 1036–37
(9th Cir. 2016). “[I]n the ordinary case, an employee’s failure to exhaust
contractually mandated procedures precludes judicial relief” and
requires the dismissal of federal claims. Soremekun v. Thrifty Payless,
Inc., 509 F.3d 978, 986 (9th Cir. 2007) (order).
RENTERIA-HINOJOSA V. SUNSWEET GROWERS, INC. 11
254 F.3d 802, 805 (9th Cir. 2001). In other words, “where
there is no underlying original federal subject matter
jurisdiction, the court has no authority to adjudicate
supplemental claims under § 1367.” Id. Therefore, if a
district court dismisses the federal claims in an action “for
lack of subject matter jurisdiction,” it cannot exercise
supplemental jurisdiction over the remaining claims. Id. at
806. This is because “[d]ismissal on jurisdictional grounds
means that the court was without original jurisdiction and
had no authority to do anything other than to determine its
jurisdiction.” Id.
If, however, the district court dismisses the federal
claims in an action on non-jurisdictional grounds, the court
is not required to dismiss the remaining claims. Id. (noting
§ 1367(c) provides that a district court “may” decline to
exercise supplemental jurisdiction if it has dismissed all
claims “over which it had original jurisdiction”). Therefore,
if the district court dismisses the federal claims for non-
jurisdictional reasons, “it has discretion under § 1367(c) to
adjudicate the remaining claims.” Id. (emphasis added); see
also Lacey v. Maricopa Cnty., 693 F.3d 896, 940 (9th Cir.
2012) (en banc) (“Where a district court ‘dismiss[es] every
claim over which it had original jurisdiction,’ it retains
‘pure[ ] discretion[ ]’ in deciding whether to exercise
supplemental jurisdiction over the remaining claims.”
(quoting Carlsbad Tech., Inc. v. HIF Bio, Inc., 556 U.S. 635,
639 (2009))).
Here, as stated, the district court dismissed Renteria-
Hinojosa’s federal untimely-wage claims for failure to
exhaust CBA grievance procedures. Thus, our jurisdiction to
review the remand orders depends on whether the dismissal
of the federal untimely-wage claims for failure to exhaust
was based on a lack of subject matter jurisdiction. Our circuit
12 RENTERIA-HINOJOSA V. SUNSWEET GROWERS, INC.
has not yet squarely addressed the issue of whether the
exhaustion requirement for § 301 claims is jurisdictional.
We conclude that it is not for two reasons.
First, “[o]nly Congress may determine a lower federal
court’s subject-matter jurisdiction.” Kontrick v. Ryan, 540
U.S. 443, 452 (2004). Courts therefore “treat a rule as
jurisdictional only if Congress clearly states that it is.”
Santos-Zacaria v. Garland, 598 U.S. 411, 416 (2023)
(internal quotation marks and citations omitted). “[R]ules
derived from sources other than Congress are more
accurately characterized as ‘mandatory claim-processing
rules’” rather than “true jurisdictional rules.” Rodriguez v.
Cnty. of Los Angeles, 891 F.3d 776, 790 (9th Cir. 2018)
(quoting Hamer v. Neighborhood Hous. Servs. of Chicago,
583 U.S. 17, 20 (2017)). We have therefore held that “failure
to exhaust an administrative or other pre-filing remedy
deprives federal courts of subject matter jurisdiction only in
those cases in which Congress makes plain the jurisdictional
character of the exhaustion requirement in question.”
Maronyan v. Toyota Motor Sales, 658 F.3d 1038, 1040 (9th
Cir. 2011). Congress has not imposed a jurisdictional
exhaustion requirement for § 301 claims. Section 301 does
not itself include an exhaustion requirement. See 29 U.S.C.
§ 185(a). Rather, the “general rule” that an employee must
exhaust contract grievance procedures before filing suit
comes from judicial decisions and reflects “policy”
considerations such as the “[u]nion interest in prosecuting
employee[] grievances” as well as Congress’ “approv[al]
[of] contract grievance procedures” as the preferred method
of dispute resolution. Republic Steel Corp., 379 U.S. at 652–
53. The judicial source for the exhaustion requirement for
§ 301 claims and absence of any clear statement from
RENTERIA-HINOJOSA V. SUNSWEET GROWERS, INC. 13
Congress indicates that it is a mandatory claim-processing
rule, not a jurisdictional requirement.
Second, the existence of equitable, judge-made
exceptions to the exhaustion requirement confirms that the
requirement is not jurisdictional. Courts “cannot grant
equitable exceptions to jurisdictional rules” because they
“are not able to exceed limits on their adjudicative
authority.” Santos-Zacaria, 598 U.S. at 416. In the case of
§ 301 exhaustion, however, the Supreme Court has created
equitable exceptions to avoid “an unacceptable injustice
when the union representing the employee in the
grievance/arbitration procedure acts in such a
discriminatory, dishonest, arbitrary, or perfunctory fashion
as to breach its duty of fair representation” and prevents the
employee from properly exhausting. DelCostello v. Int’l
Bhd. of Teamsters, 462 U.S. 151, 164 (1983); see also Vaca
v. Sipes, 386 U.S. 171, 185 (1967); Soremekun, 509 F.3d at
986–87. By creating these exceptions, the Court has implied
that the exhaustion requirement for § 301 claims is not
jurisdictional. 8 We therefore conclude that the district
court’s dismissal of Renteria-Hinojosa’s federal untimely-
8
Our conclusion is consistent with the Fourth Circuit’s decision in
Staudner v. Robinson Aviation, Inc., which held that “the exhaustion
requirement under § 301(a) is a nonjurisdictional precondition to suit
rather than a jurisdictional limit.” 910 F.3d 141, 148 (4th Cir. 2018). We
note, as the Fourth Circuit did in Staudner, that the Fifth Circuit has
reached the opposition conclusion, holding that the exhaustion
requirement is jurisdictional. See Nat’l Football League Players Ass’n v.
Nat’l Football League, 874 F.3d 222, 226–28 (5th Cir. 2017) (per
curium). However, for the reasons above, we are persuaded that the
requirement is not jurisdictional, and we join the Fourth Circuit in so
holding.
14 RENTERIA-HINOJOSA V. SUNSWEET GROWERS, INC.
wage claims for failure to exhaust was not based on a lack of
subject matter jurisdiction.
Because the district court’s dismissal of the federal
claims could not have been jurisdictional, the court had
discretion either to exercise supplemental jurisdiction over
the remaining claims or to decline and remand them.
Herman, 254 F.3d at 805. Where, as here, the district court
exercises its discretion to decline supplemental jurisdiction
over state law claims, its remand order is not “based on a
‘lack of subject matter jurisdiction’ for purposes of
§§ 1447(c) and (d).” Carlsbad, 556 U.S. at 638–39; see also
Thermtron, 423 U.S. at 345–46; Kircher, 547 U.S. at 640.
Therefore, § 1447(d) does not bar our review of the remand
orders. Further, as Renteria-Hinojosa’s counsel conceded at
oral argument, because § 1447(d) does not bar our review,
we have jurisdiction to review the remand orders in their
entirety, including the district court’s conclusions that
Renteria-Hinojosa’s remaining state law claims are not
federal § 301 claims. See Carlsbad, 556 U.S. at 641; see also
BP P.L.C. v. Mayor & City Council of Baltimore, 593 U.S.
230, 237 (2021) (concluding that where review is authorized
under § 1447(d), courts of appeals may “examine the whole
of a district court’s ‘order,’ not just some of its parts or
pieces”).
III. PREEMPTION
We now turn to the merits of Sunsweet’s appeal.
Sunsweet principally argues that the district court erred in
concluding that Renteria-Hinojosa’s remaining state law
claims are not preempted by § 301. Preemption is a question
of law that we review de novo. Burnside, 491 F.3d at 1058;
see also HIF Bio, Inc. v. Yung Shin Pharms. Indus. Co., 600
F.3d 1347, 1352 (Fed. Cir. 2010), as amended on reh’g in
RENTERIA-HINOJOSA V. SUNSWEET GROWERS, INC. 15
part (June 14, 2010) (explaining that although the court
reviews “for abuse of discretion the district court’s decision
not to exercise supplemental jurisdiction,” it reviews
“question[s] of law” in a remand order “without deference”).
A. Section 301
As discussed, § 301 preempts “any state cause of action
for violation of contracts between an employer and a labor
organization.” Franchise Tax Bd., 463 U.S. at 23 (quotation
marks omitted). This circuit has “distilled” the Supreme
Court’s doctrine on § 301 preemption “into a two-part
inquiry into the nature of a plaintiff’s claim”: § 301 preempts
a plaintiff’s state law claim only where the claim (1) “arises
entirely from” a collective bargaining agreement or
(2) “requires interpretation of” the agreement. Alaska
Airlines Inc. v. Schurke, 898 F.3d 904, 920–21 (9th Cir.
2018) (en banc).
At step one of this test, “we evaluate the ‘legal character’
of the claim by asking whether it seeks purely to vindicate a
right or duty created by the CBA itself.” Id. (quoting Livadas
v. Bradshaw, 512 U.S. 107, 123 (1994)). If the claim “arises
entirely from a right or duty of the CBA . . . it is, in effect, a
CBA dispute in state law garb, and is preempted.” Id. at 921.
The collective bargaining agreement must be the “‘only
source’ of the right the plaintiff seeks to vindicate.” Id.
(quoting Hawaiian Airlines, Inc. v. Norris, 512 U.S. 246,
258 (1994)). Thus, a claim that “involves a right conferred
upon an employee by virtue of state law” is not preempted
at step one. Burnside, 491 F.3d at 1059.
If the right at issue does not arise entirely from a
collective bargaining agreement, we proceed to step two and
ask “whether litigating the state law claim nonetheless
requires interpretation of a CBA, such that resolving the
16 RENTERIA-HINOJOSA V. SUNSWEET GROWERS, INC.
entire claim in court threatens the proper role of grievance
and arbitration.” Alaska Airlines, 898 F.3d at 921. Claims are
only preempted at step two “to the extent there is an active
dispute over ‘the meaning of contract terms.’” Id. (quoting
Livadas, 512 U.S. at 124). Therefore, “[a] hypothetical
connection between the claim and the terms of the CBA is
not enough to preempt the claim . . . [n]or is it enough that
resolving the state law claim requires a court to refer to the
CBA and apply its plain or undisputed language.” Id. at 921–
22 (cleaned up).
If a claim “is either grounded in the provisions of the
labor contract or requires interpretation of it,” that claim
arises under federal law, even if the plaintiff does not
“allege[] a breach of contract in their complaint.” Burnside,
491 F.3d at 1059. This “complete pre-emption” rule prevents
plaintiffs from “evad[ing] the requirements of section 301 by
relabeling their contract claims as . . . state cause[s] of
action.” Id. (quotation marks and citation omitted);
Caterpillar, 482 U.S. at 393–94. However, “the plaintiff
may, by eschewing claims based on federal law, choose to
have the cause heard in state court.” Caterpillar, 482 U.S. at
399. Therefore, when a plaintiff’s state law claim does not
arise from a collective bargaining agreement or require
interpretation of that agreement, a defendant cannot, by
invoking the agreement as a defense, “transform the action
into one arising under federal law.” Id.
B. Renteria-Hinojosa’s Claims
1. Step One
The district court correctly determined that Renteria-
Hinojosa’s remaining claims are not preempted at step one
of the preemption test. Each of Renteria-Hinojosa’s state law
claims alleges violations of rights that exist under California
RENTERIA-HINOJOSA V. SUNSWEET GROWERS, INC. 17
law. Specifically, she asserts violations of California statutes
and regulations prohibiting unfair business practices, Cal.
Bus. & Prof. Code §§ 17200–03, and retaliation, Cal. Lab.
Code § 1102.5; and requiring employers to provide
minimum wages, id. §§ 1194, 1197, 1197.1; overtime pay,
id. § 510; paid sick days, id. § 246; accurate itemized wage
statements, id. § 226; reimbursement for necessary
expenditures, id. § 2802; meal and rest periods, id. §§ 226.7,
512; and adequate seating, Cal. Code Regs. tit. 8,
§ 11070(14). As such, Renteria-Hinojosa’s claims do not
arise exclusively from the CBAs, but rather from “right[s]
conferred” by state law. Burnside, 491 F.3d at 1059.
Sunsweet argues her claims are nevertheless preempted
at step one because Renteria-Hinojosa’s “allegations
necessarily allege a breach of the CBA.” This argument
misconstrues the preemption test. At step one, a state law
claim is preempted only if a CBA is the “only source” of the
right underlying the claim, as opposed to an additional
source. Alaska Airlines, 898 F.3d at 921 (citation omitted).
Because state law is a source for each of Renteria-Hinojosa’s
claims, it does not matter whether Renteria-Hinojosa’s
factual allegations could also support claims for breach of
the CBAs at step one. Id.; see also Lingle v. Norge Div. of
Magic Chef, Inc., 486 U.S. 399, 409–10 (1988).
2. Step Two
On appeal, Sunsweet argues that Renteria-Hinojosa’s
claims for overtime pay, sick leave pay, and meal and rest
breaks are preempted at step two because they require
interpretation of “substantive provisions” of the CBAs. We
disagree.
Overtime Pay. Renteria-Hinojosa alleges that Sunsweet
required employees to “work off the clock” and seeks unpaid
18 RENTERIA-HINOJOSA V. SUNSWEET GROWERS, INC.
overtime compensation under California Labor Code §§ 510
and 1194. To determine the amount of liability for unpaid
overtime wages under state law, a court may need to refer to
the pay rates listed in the CBAs to identify the applicable
regular rate of pay. See Cal. Lab. Code §§ 510, 1194. But
merely referring to CBA terms does not trigger § 301
preemption. Livadas, 512 U.S. at 125 (“[T]he mere need to
‘look to’ the collective-bargaining agreement for damages
computation is no reason to hold the state-law claim defeated
by § 301.”); Alaska Airlines, 898 F.3d at 921. Sunsweet fails
to identify any interpretive dispute about a CBA term that
must be resolved to determine the regular rate of pay or any
other element of Renteria-Hinojosa’s overtime pay claims.
Sunsweet only vaguely argues that calculating liability
would involve questions regarding the CBA overtime
provisions that are “meatier” than the district court
recognized. This conclusory argument fails to establish that
the overtime pay claims are preempted.
Sick Leave Pay Rate. Renteria-Hinojosa alleges that
Sunsweet failed to pay employees at the sick pay rate
required by California Labor Code § 246. Sunsweet argues
that these claims are preempted because the CBAs “define
pay during leave” in terms that require interpretation.
Specifically, Sunsweet cites CBA provisions providing for
accrual of sick leave pay based on “enhanced hours”;
provisions requiring “reasonable proof of illness”; and
provisions making the company “the sole judge” of whether
proof of illness is sufficient. Even assuming the meaning of
these provisions is genuinely disputed, any such dispute is
irrelevant because these provisions affect only when an
employee accrues sick leave pay and when an employee is
entitled to use sick leave pay. Those issues are not implicated
RENTERIA-HINOJOSA V. SUNSWEET GROWERS, INC. 19
by Renteria-Hinojosa’s claim that Sunsweet failed to pay
employees at the sick pay rate required under California law.
Meal and Rest Breaks. Renteria-Hinojosa alleges that
Sunsweet failed to provide meal and rest breaks as required
under California Labor Code §§ 226.7 and 512. Sunsweet
argues that litigating these claims will require interpretation
of CBA rest break provisions because these provisions
“apply not only to the timing of breaks but also permit
Sunsweet to modify breaks under certain circumstances.”
But the terms of the CBA rest break provisions are irrelevant
to Renteria-Hinojosa’s claims that Sunsweet failed to
provide rest breaks as required by California law.
California’s rest break requirements are a “minimum labor
standard” that neither an employee nor their collective
bargaining representative can waive. Zavala v. Scott Bros.
Dairy, Inc., 49 Cal. Rptr. 3d 503, 506, 509 (Ct. App. 2006)
(citation omitted) (discussing Cal. Lab. Code § 226.7
(2006)); Valles v. Ivy Hill Corp., 410 F.3d 1071, 1076, 1082
(9th Cir. 2005) (“[Section] 301 does not permit parties to
waive, in a collective bargaining agreement, nonnegotiable
state rights conferred on individual employees.” (quotation
marks and citation omitted)). Sunsweet was therefore
required to provide rest breaks in accordance with state law,
regardless of whether the CBA gave Sunsweet certain
discretion to modify rest breaks.
3. CBA Dispute Resolution Provisions
Sunsweet also argues that all of Renteria-Hinojosa’s
claims are preempted because of the dispute resolution
provisions in the CBAs. Each CBA includes a mandatory
dispute resolution procedure for employee “grievances.”
The 2017–21 CBA defines “grievance” as a complaint of an
alleged violation of the CBA. The 2021–23 CBA defines
20 RENTERIA-HINOJOSA V. SUNSWEET GROWERS, INC.
“grievance” more broadly to also include “a claim by an
employee . . . that they have been adversely affected by a
violation, misapplication or misinterpretation of . . . the
California Labor Code.” The agreement states that “[a]ll
such claims are exclusively subject to this Dispute
Resolution procedure, which shall be the sole and exclusive
remedy for such claims.” 9 Broadly speaking, both dispute
resolution provisions require employees to pursue a multi-
step complaint process with management, after which the
Union may appeal management’s decision to an arbitrator.
Sunsweet argues that the 2021–2023 CBA effectively
waived Renteria-Hinojosa’s right to bring her state law
claims in court. In other words, Sunsweet argues that
Renteria-Hinojosa brought her claims in the wrong forum
and that under the CBA, her only option was to pursue her
claims through grievance arbitration. Sunsweet further
contends that, because all of Renteria-Hinojosa’s claims
must be arbitrated under the CBA, her claims all “arise
under” the CBA and are preempted at step one of the
preemption test. Alternatively, Sunsweet argues that even if
it is unclear whether the CBA dispute resolution provisions
cover all of Renteria-Hinojosa’s claims, a court would need
to resolve that ambiguity to determine whether Renteria-
9
The parties dispute the applicability of the two CBAs. Sunsweet
contends that the 2021–23 CBA is the “operative” agreement for the
purposes of this litigation because the 2021–23 CBA was “in place at the
time of Plaintiff’s grievance.” (“Grievance” here presumably refers to
Renteria-Hinojosa’s lawsuits.) Renteria-Hinojosa argues that the 2017–
21 CBA governs her claims based on alleged misconduct that occurred
prior to March 2021. Because, for the reasons below, we conclude that
neither dispute resolution provision can trigger preemption of Renteria-
Hinojosa’s claims, we need not reach the merits of this dispute.
RENTERIA-HINOJOSA V. SUNSWEET GROWERS, INC. 21
Hinojosa is required to arbitrate her claims, and therefore,
her claims are preempted at step two.
Sunsweet’s arguments are foreclosed by the Supreme
Court’s decision in Caterpillar Inc. v. Williams, which held
that a defendant cannot create removal jurisdiction under
§ 301 by invoking a collective bargaining agreement as a
defense. 482 U.S. at 398–99. Caterpillar considered the
intersection of two federal court doctrines: the well-pleaded
complaint rule and the complete preemption doctrine. Id. at
393–94, 398–99. As the Court explained, “[o]nly state-court
actions that originally could have been filed in federal court
may be removed to federal court by the defendant,” and,
“[a]bsent diversity of citizenship, federal-question
jurisdiction is required” for removal. Id. at 392 & nn.5–6
(citing 28 U.S.C. §§ 1331, 1441). In general, “[t]he presence
or absence of federal-question jurisdiction is governed by the
‘well-pleaded complaint rule,’ which provides that federal
jurisdiction exists only when a federal question is presented
on the face of the plaintiff’s properly pleaded complaint.” Id.
at 392.
Caterpillar also recognized “an ‘independent corollary’
to the well-pleaded complaint rule, known as the ‘complete
pre-emption’ doctrine.” Id. at 393 (citation omitted). As our
court has explained, “despite its name,” complete
preemption “is actually a doctrine of jurisdiction.” Alaska
Airlines, 898 F.3d at 923 n.15 (quoting Balcorta v. Twentieth
Century-Fox Film Corp., 208 F.3d 1102, 1107 n.7 (9th Cir.
2000)). Under this doctrine, “[o]nce an area of state law has
been completely pre-empted, any claim purportedly based
on that pre-empted state law is considered, from its
inception, a federal claim, and therefore arises under federal
law.” Caterpillar, 482 U.S. at 393; see also Schmeling v.
NORDAM, 97 F.3d 1336, 1342 (10th Cir. 1996) (clarifying
22 RENTERIA-HINOJOSA V. SUNSWEET GROWERS, INC.
that “complete preemption” “refers to the replacement of a
state cause of action with a federal one” rather than “a crude
measure of the breadth of the preemption (in the ordinary
sense) of a state law by a federal law”). “[T]he ‘complete
preemption’ doctrine does not abrogate the standard rule that
a defense of preemption does not create federal question
jurisdiction” because it is not the “defense of preemption”
that creates federal jurisdiction, but rather the inherently
federal nature of the plaintiffs’ claim. Balcorta, 208 F.3d at
1107 n.7 (citing Caterpillar, 482 U.S. at 393).
The applicability of complete preemption, then, turns on
the “nature of the plaintiff’s claim.” Cramer v. Consol.
Freightways Inc., 255 F.3d 683, 691 (9th Cir. 2001) (en
banc), as amended (Aug. 27, 2001). As the Court held in
Caterpillar, “when ‘[t]he heart of the [state law] complaint
[is] a . . . clause in the collective bargaining agreement,’ that
complaint arises under federal law.” 482 U.S. at 394
(quoting Avco Corp. v. Aero Lodge No. 735, 390 U.S. 557,
558 (1968)). “[R]emoval is at the defendant’s option”
because “the plaintiff has chosen to plead what we have held
must be regarded as a federal claim.” Id. at 399; see also
Burnside, 491 F.3d at 1059 (explaining that Caterpillar’s
complete preemption rule applies where “the plaintiffs’
claim is either grounded in the provisions of the labor
contract or requires interpretation of it,” even if “the
plaintiffs have not alleged a breach of contract in their
complaint”).
However, where a plaintiff “asserts what is plainly a
state-law claim,” “the presence of a federal question, even a
§ 301 question, in a defensive argument does not overcome
the paramount policies embodied in the well-pleaded
complaint rule,” and “a defendant cannot, merely by
injecting a federal question into an action” through a
RENTERIA-HINOJOSA V. SUNSWEET GROWERS, INC. 23
defensive argument, “transform the action into one arising
under federal law.” Caterpillar, 482 U.S. at 398–99. Thus, if
a plaintiff’s claim “is plainly based on state law, § 301
preemption is not mandated simply because the defendant
refers to the CBA in mounting a defense.” Cramer, 255 F.3d
at 691. Again, under Caterpillar, because “[t]he plaintiff’s
claim is the touchstone” for complete preemption, “the need
to interpret the CBA must inhere in the nature of the
plaintiff’s claim.” Id.
Sunsweet’s argument for federal removal jurisdiction is
foreclosed by Caterpillar because, as discussed, Renteria-
Hinojosa’s claims do not arise from the CBAs or require
interpretation of the CBAs. Rather, Sunsweet invokes the
CBA dispute resolution provisions in its defensive
arguments. Although Sunsweet does not label its arguments
as “defenses,” that is what they are. Sunsweet argues that the
2021–2023 CBA waived Renteria-Hinojosa’s right to
litigate her claims in court and, therefore, Renteria-Hinojosa
is in the wrong forum—she must pursue her claims in
grievance arbitration. The argument that a plaintiff has
contractually waived her right to a judicial forum is a
defense. See Loc. Joint Exec. Bd. of Las Vegas v. N.L.R.B.,
540 F.3d 1072, 1079 (9th Cir. 2008) (“Proof of a contractual
waiver is an affirmative defense . . . .”); Caterpillar, 482
U.S. at 398 (referring to the defendant’s contractual waiver
argument as a “defense”). So too is the corresponding
argument that a plaintiff must pursue her claims through
contractual dispute resolution processes like arbitration. See,
e.g., Mediterranean Enters., Inc. v. Ssangyong Corp., 708
F.2d 1458, 1462 (9th Cir. 1983) (“[R]eliance upon an
arbitration agreement to avoid immediate litigation is an
equitable defense.”); Vaca, 386 U.S. at 185 (referring to
employers’ reliance on “unexhausted grievance and
24 RENTERIA-HINOJOSA V. SUNSWEET GROWERS, INC.
arbitration procedures as a defense to the employee’s cause
of action”).
Even assuming Sunsweet is correct that the 2021–2023
CBA waived Renteria-Hinojosa’s right to a judicial forum,
and that she must therefore pursue her claims through
grievance arbitration, Renteria-Hinojosa’s claims do not
“arise under” the CBA. Rather, her claims arise under state
law. Sunsweet could have answered her state law claims by
arguing, as an affirmative defense, that the CBA dispute
resolution provisions preclude litigation in state court and by
moving to compel arbitration. Under Caterpillar, however,
this defensive argument does not create § 301 jurisdiction.
As the Court recognized in Caterpillar, “when a defense
to a state claim is based on the terms of a collective-
bargaining agreement, the state court will have to interpret
that agreement to decide whether the state claim survives.”
482 U.S. at 398. But the fact that a state court may need to
interpret the CBA to determine whether Renteria-Hinojosa
can maintain her claims in state court does not change the
state law nature of her claims and does not create § 301
jurisdiction under Caterpillar. Id. at 398–99. A state court
may therefore “look to the CBA to determine whether it
contains a clear and unmistakable waiver of state law rights
without triggering § 301 preemption.” Cramer, 255 F.3d at
692; see also Alaska Airlines, 898 F.3d at 921–22 (listing
waiver of state law rights among other analyses that a state
court might be required to perform without triggering
preemption). 10
10
In arguing that Renteria-Hinojosa’s claims are preempted because the
CBA waived her right to litigate her claims in state court, Sunsweet relies
on two Supreme Court decisions that applied a “clear and unmistakable
waiver” standard to determine whether a collective bargaining
RENTERIA-HINOJOSA V. SUNSWEET GROWERS, INC. 25
Sunsweet offers multiple theories as to why Caterpillar
does not foreclose its preemption argument, none of which
is persuasive. Sunsweet first argues that the Court’s holding
in Caterpillar was limited to “[c]laims bearing no
relationship to a collective-bargaining agreement.” This
argument misconstrues the Court’s decision. As explained,
Caterpillar held that where a state law claim is not otherwise
preempted by § 301, a defendant cannot create § 301
jurisdiction by invoking the agreement as a defense. 482
U.S. at 398–99. Elsewhere in the opinion, the Court offered,
as an example of state law claims that are not preempted by
§ 301, “[c]laims bearing no relationship to a collective-
bargaining agreement beyond the fact that they are asserted
by an individual covered by such an agreement.” Id. at 396
n.10. Nothing in Caterpillar suggests that these are the only
claims not preempted by § 301, or that the Court’s
discussion of the well-pleaded complaint rule was limited to
such claims. And, as discussed above, Sunsweet has not
established that Renteria-Hinojosa’s claims are otherwise
preempted by § 301. Accordingly, Caterpillar applies here.
Sunsweet next relies on language from Lyons v. Alaska
Teamsters Employer Service Corp., 188 F.3d 1170 (9th Cir.
agreement waived employees’ right to litigate a claim in federal court,
Wright v. Universal Maritime Services Corp., 525 U.S. 70 (1998), and
14 Penn Plaza LLC v. Pyett, 556 U.S. 247 (2009). Neither case
concerned removal jurisdiction or preemption. Rather, in both Wright
and Pyett, the plaintiffs brought federal claims in federal court. 525 U.S.
at 75; 556 U.S. at 253–54. The employers raised arbitration provisions
in the collective bargaining agreements as an affirmative defense to the
plaintiffs’ claims, Wright, 525 U.S. at 75, and in moving to compel
arbitration, Pyett, 556 U.S. at 251–52, 254. Because neither case
involved removal jurisdiction or preemption, neither case affects our
conclusion that, under the well-pleaded complaint rule in Caterpillar,
Sunsweet’s waiver defense does not create § 301 jurisdiction.
26 RENTERIA-HINOJOSA V. SUNSWEET GROWERS, INC.
1999), to argue that, contrary to Caterpillar, a defendant may
remove a state law claim based on the defendant’s
invocation of a collective bargaining agreement in a
defensive argument. Lyons, however, does not support this
proposition. In that case, we considered complete
preemption in the context of the Employee Retirement
Income Security Act (“ERISA”). See id. at 1171–72. “[S]tate
law claims are preempted by ERISA only if they fall within
the scope of ERISA’s civil enforcement provision.” Geweke
Ford v. St. Joseph’s Omni Preferred Care Inc., 130 F.3d
1355, 1358 (9th Cir. 1997); see also Hansen v. Grp. Health
Coop., 902 F.3d 1051, 1058–59 (9th Cir. 2018). Claims
within the scope of this provision are completely preempted.
Geweke Ford., 130 F.3d at 1358; Hansen, 902 F.3d at 1058–
59. Lyons explained that where the ERISA “preemption
defense” is available—i.e., where nominally state law claims
fall within the scope of ERISA’s civil enforcement
provision—a federal court “has jurisdiction under the theory
of complete preemption,” even where federal claims “do[]
not appear on the face of plaintiff’s well-pleaded complaint.”
188 F.3d at 1172. This characterization of the complete
preemption doctrine is entirely consistent with Caterpillar
and does not support Sunsweet’s position that—contrary to
Caterpillar’s direct holding—a defendant’s reliance on a
collective bargaining agreement in a defensive argument
creates § 301 jurisdiction.
Finally, Sunsweet cites Carter v. Health Net of
California, Inc., 374 F.3d 830 (9th Cir. 2004), to support its
argument for § 301 jurisdiction, but that case is also
inapposite. Carter considered federal jurisdiction over
opposing petitions to vacate and confirm an arbitration
award against an insurance company under the California
Arbitration Act. Id. at 832–33. In holding that the district
RENTERIA-HINOJOSA V. SUNSWEET GROWERS, INC. 27
court lacked jurisdiction over the dispute, we distinguished
cases holding that federal courts have § 301 jurisdiction over
certain arbitration-related actions. Id. at 834–35. Carter
explained that “[u]nlike the [Federal Arbitration Act] or state
arbitration statutes, the LMRA can be used as a basis for
federal question jurisdiction over actions to compel
arbitration, as well as petitions to confirm or vacate
arbitration awards.” Id. at 835 (citing Johnson v. England,
356 F.2d 44, 45 (9th Cir. 1966) (action to compel arbitration
over “controversies . . . arising out of the terms of the []
collective bargaining agreement”); United Bhd. of
Carpenters & Joiners of Am., Loc. No. 1780 v. Desert
Palace, Inc., 94 F.3d 1308, 1309 (9th Cir. 1996) (same),
abrogated on other grounds by, Granite Rock Co. v. Int’l
Bhd. of Teamsters, 561 U.S. 287 (2010); United
Paperworkers Int’l Union v. Misco, Inc., 484 U.S. 29, 31–34
(1987) (action to vacate an arbitration award for dispute
submitted to arbitration pursuant to a collective bargaining
agreement); Mulvaney Mech., Inc. v. Sheet Metal Workers
Int’l Ass’n, Loc. 38, 351 F.3d 43, 44 (2d Cir. 2003) (per
curium) (same); Brown v. Witco Corp., 340 F.3d 209, 211–
13 (5th Cir. 2003) (action to enforce arbitration award for
dispute submitted to arbitration pursuant to a collective
bargaining agreement)).
Carter and the cases cited therein are irrelevant here
because in actions to compel arbitration or to vacate or
enforce an arbitration award, the arbitration provision in a
collective bargaining agreement does not arise as a
defense—it is the basis for the complaint. Carter does not
address § 301 jurisdiction over a state law action where, as
here, the defendant raises the collective bargaining
agreement in a defensive argument that the plaintiff should
28 RENTERIA-HINOJOSA V. SUNSWEET GROWERS, INC.
have pursued her state law claims in arbitration. 11 In this
context, as explained above, § 301 jurisdiction is controlled
by Caterpillar.
4. Private Attorneys General Act
Sunsweet raises one additional preemption argument
regarding Renteria-Hinojosa’s PAGA action. As noted
above, PAGA provides a private cause of action for
employees to sue their employers for violations of the
California Labor Code. Cal. Lab. Code §§ 2698 et seq.
Sunsweet argues that because the claims in Renteria-
Hinojosa’s PAGA action all technically arise from the same
private suit provision, and because the district court
concluded that Renteria-Hinojosa’s claim for untimely
wages is preempted, the rest of her claims are necessarily
preempted, too. In support of this argument, Sunsweet cites
Garcia v. Service Employees International Union, 993 F.3d
757 (9th Cir. 2021), for the proposition that “once an area of
state law has been completely pre-empted, any claim
purportedly based on that pre-empted state law is
considered, from its inception, a federal claim.” Id. at 762
(quoting Caterpillar, 482 U.S. at 392).
This proposition, however, does not help Sunsweet
because the district court did not conclude that PAGA itself
is “completely preempted” by federal law; rather, it
concluded that one of the claims alleging a predicate
violation of the California Labor Code is preempted.
Sunsweet does not identify any other authority that supports
its argument that the district court’s preemption
11
For the same reason, Sunsweet’s reliance on Textile Workers Union of
America v. Lincoln Mills of Alabama, 353 U.S. 448 (1957), is inapposite.
Lincoln Mills similarly concerned federal jurisdiction over an action to
compel arbitration initiated by a union in federal court. Id. at 449.
RENTERIA-HINOJOSA V. SUNSWEET GROWERS, INC. 29
determination as to one PAGA claim necessarily applies to
the remaining PAGA claims simply because they share the
same statutory cause of action. Indeed, this theory is
undercut by the Supreme Court’s recent holding that “a
PAGA action asserting multiple code violations affecting a
range of different employees does not constitute ‘a single
claim’ in even the broadest possible sense.” Viking River
Cruises, Inc. v. Moriana, 596 U.S. 639, 654 (2022) (citation
omitted), reh’g denied, 143 S.Ct. 60 (2022). We therefore
conclude that Renteria-Hinojosa’s remaining PAGA claims
are not preempted.
IV. REMAND OF NON-PREEMPTED CLAIMS
We now turn to the district court’s decision to remand
Renteria-Hinojosa’s remaining state law claims to state
court, instead of exercising supplemental jurisdiction over
these claims. We review this decision for abuse of discretion.
See Carlsbad, 556 U.S. at 640.
Sunsweet first argues that the court abused its discretion
because it did not “appreciate that it had the option of
retaining jurisdiction” over the remanded claims after it
dismissed the federal claims. Sunsweet is correct that, after
a district court dismisses federal claims in an action on non-
jurisdictional grounds, it is required to exercise its discretion
to decide whether it is “appropriate to keep the state claims
in federal court”; it cannot remand for lack of supplemental
jurisdiction. Lacey, 693 F.3d at 940. But based on our review
of the district court’s orders, we conclude that the district
court did not make this mistake. In both orders, the district
court reasoned that “[b]ecause the only claim over which the
Court would have jurisdiction must be dismissed, the Court
should not retain jurisdiction over [the remaining claims]
[and] . . . [t]he Court will therefore remand the case back to
30 RENTERIA-HINOJOSA V. SUNSWEET GROWERS, INC.
the state court.” The district court’s use of the phrases
“should not” (versus “cannot”) and “will remand” (versus
“must remand”) indicate that the district court recognized
that it could retain supplemental jurisdiction but declined to
do so. Compare id. at 939–40 (determining that the district
court failed to appropriately exercise its discretion when it
concluded that “once it dismissed all of the federal claims, it
no longer had supplemental jurisdiction over the remaining
state law claims”).
Sunsweet next argues that the district court’s remand was
improper because Renteria-Hinojosa did not raise
supplemental jurisdiction below and therefore “waived” the
issue. Essentially, Sunsweet contends that the district court
erred in declining to exercise supplemental jurisdiction
because Renteria-Hinojosa did not oppose supplemental
jurisdiction below. Even assuming Renteria-Hinojosa
forfeited the issue, the district court did not err. 12 Although
a district court “is not required to make a § 1367(c) analysis
unless asked to do so by a party,” a district court may
“invoke[]” its “discretion under § 1367(c) . . . on its own
initiative.” Acri v. Varian Assocs., Inc., 114 F.3d 999, 1000,
1001 n.3 (9th Cir. 1997) (en banc). In attempting to construe
Acri in its favor, Sunsweet cites Acri’s discussion of a D.C.
Circuit decision that held that a party’s arguments regarding
the exercise of discretionary supplemental jurisdiction can
be waived on appeal if not raised below. Id. at 1001
(characterizing Doe by Fein v. District of Columbia, 93 F.3d
861 (D.C. Cir. 1996)). This holding, however, has no bearing
on the district court’s authority to consider “on its own
12
Renteria-Hinojosa asserts that she “clearly and explicitly raised the
issue in briefing” below, but she does not provide a citation to the record.
RENTERIA-HINOJOSA V. SUNSWEET GROWERS, INC. 31
initiative” whether supplemental jurisdiction is appropriate.
114 F.3d at 1001 n.3.
V. CONCLUSION
For the foregoing reasons, we have jurisdiction to review
the district court’s remand orders; we agree with the district
court that Renteria-Hinojosa’s remaining state law claims
are not preempted by § 301; and we conclude that the district
court did not abuse its discretion in remanding these claims
to state court.
AFFIRMED.
Plain English Summary
FOR PUBLICATION UNITED STATES COURT OF APPEALS FOR THE NINTH CIRCUIT ANNAMARIE RENTERIA- Nos.
Key Points
01FOR PUBLICATION UNITED STATES COURT OF APPEALS FOR THE NINTH CIRCUIT ANNAMARIE RENTERIA- Nos.
022:23-cv-01673- DJC-DB SUNSWEET GROWERS, INC., a California Corporation, OPINION Defendant - Appellant.
03Calabretta, District Court, Presiding Argued and Submitted October 24, 2024 San Francisco, California Filed August 14, 2025 Before: John B.
04SUMMARY * Labor Law / Removal and Remand The panel affirmed the district court’s orders remanding two removed actions to state court after concluding that Annamarie Renteria-Hinojosa’s remaining state law claims against her employer, Sunswe
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FOR PUBLICATION UNITED STATES COURT OF APPEALS FOR THE NINTH CIRCUIT ANNAMARIE RENTERIA- Nos.
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