Litigating California Wage & Hour and Labor Code Class Actions

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Litigating California Wage & Hour and Labor Code Class Actions 12TH EDITION Editors: Christopher A. Crosman Julia Brodsky Jonathan L. Brophy Seyfarth Shaw LLP | www.seyfarth.com
Table of Contents I. Introduction and Overview ......................................................................................4 II. Common Exempt Misclassification Claims ...........................................................4 A. Overview of State Overtime Law............................................................................................... 5 B. The Executive (Managerial) Exemption .................................................................................... 6 C. The Administrative Exemption ................................................................................................ 10 D. The Outside Sales Exemption................................................................................................. 15 III. Unlawful Deductions from Wages ........................................................................18 A. Generally ................................................................................................................................. 18 B. Unlawful Bonus Plans ............................................................................................................. 19 C. Unlawful Commission Chargebacks ....................................................................................... 21 IV. Reimbursement of Employee Expenses ..............................................................25 A. The Duty to Reimburse Expenses Under Labor Code Section 2802 ..................................... 25 B. Reimbursement for Uniforms Under the Wage Orders........................................................... 28 V. Meal and Rest Period Claims ................................................................................29 A. Nature of Claims...................................................................................................................... 29 B. Debate Over Whether One-Hour Payment Is a “Penalty”....................................................... 32 C. Meaning of “Provide” a Meal Period........................................................................................ 33 D. Limits on IWC’s Power to Alter Labor Code Meal Period Rules ............................................. 38 VI. Tip-pooling..............................................................................................................39 A. Actions Alleging Tips Were Diverted to Co-Workers Who Did Not Earn Them...................... 40 B. Actions Alleging “Agents” of Management Wrongfully Took Tips........................................... 42 C. The Future of Tip-pooling Cases Under California Law.......................................................... 43 VII. Vacation/Paid Time Off Forfeiture ........................................................................44 VIII. Waiting Time Penalties ..........................................................................................46 A. Generally ................................................................................................................................. 46 B. Application to Fixed-Term and Temporary Employment......................................................... 47 IX. Itemized Wage Statement Claims .........................................................................50 Seyfarth Shaw LLP | www.seyfarth.com Litigating California Wage & Hour Class Actions (12th Edition) 1
Page 1: Litigating California Wage & Hour a
Page 5 and 6: A. Disclosure of Class Member Names
Page 7 and 8: associated statutory penalties. 1 T
Page 9 and 10: who does not meet the threshold com
Page 11 and 12: exempt work is of a kind which in e
Page 13 and 14: 3) The employee performs his or her
Page 15 and 16: decisions have concluded that under
Page 17 and 18: Bell court to look beyond the Wage
Page 19 and 20: place of business, would that quali
Page 21 and 22: IWC had the authority to promulgate
Page 23 and 24: stores” by providing them a porti
Page 25 and 26: declare such a system illegal witho
Page 27 and 28: employers should be able to defend
Page 29 and 30: waive the right to reimbursement, s
Page 31 and 32: Due to the ambiguity in the meaning
Page 33 and 34: For each workday the employer fails
Page 35 and 36: Arguably, no additional $100-per-pa
Page 37 and 38: permitted” the employee to work t
Page 39 and 40: federal decisions also held that an
Page 41 and 42: for all overtime hours worked. The
Page 43 and 44: much broader, such as the court’s
Page 45 and 46: In the appeal of Chau, the appellat
Page 47 and 48: years before the lawsuit, or for an
Page 49 and 50: imposition of penalties, 194 routin
Page 51 and 52: In one such class action, Elliot v.
Page 53 and 54:
First, there has been a substantial
Page 55 and 56:
Recent court decisions have begun t
Page 57 and 58:
of her hours was paid at a rate of
Page 59 and 60:
the limitations period for a penalt
Page 61 and 62:
passage, then the employee could st
Page 63 and 64:
all, but rather simply to proceed w
Page 65 and 66:
Shortly thereafter, another Divisio
Page 67 and 68:
and the ability to bring a collecti
Page 69 and 70:
XIII. Class Action Fairness Act of
Page 71 and 72:
the plaintiff is “master of her c
Page 73 and 74:
alleged conduct or any related cond
Page 75 and 76:
Initially, the decisions were split
Page 77 and 78:
XIV. Class Certification A. General
Page 79 and 80:
expectations and the realistic requ
Page 81 and 82:
In the immediate wake of Sav-On, th
Page 83 and 84:
Similarly, employers may argue that
Page 85 and 86:
A 5 to 4 ruling reversed the Ninth
Page 87 and 88:
facility to the next, or variations
Page 89 and 90:
employer’s defense arsenal, and t
Page 91 and 92:
In reaching this conclusion, the Co
Page 93 and 94:
party who seeks the same relief, pr
Page 95 and 96:
is to be so maintained.” This det
Page 97 and 98:
speech. 429 Therefore, the court he
Page 99 and 100:
Puerto, or Crab Addison cases would
Page 101 and 102:
epresentative. That question was an
Page 103 and 104:
CashCall to disclose the identities
Page 105 and 106:
nothing but still are bound by the
Page 107 and 108:
Initially, there appeared to be a v
Page 109 and 110:
the case. As any one of these class
Page 111 and 112:
have any great impact on class sett
Page 113 and 114:
plaintiff’s attorney and putative
Page 115 and 116:
the California Supreme Court issued
Page 117 and 118:
While California courts have essent
Page 119 and 120:
The plaintiffs attempted to justify
Page 121:
Breadth. Depth. Results. www.seyfar
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