Litigating California Wage & Hour and Labor Code Class Actions
Litigating California Wage & Hour and Labor Code Class Actions
Litigating California Wage & Hour and Labor Code Class Actions
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worked,” which is language absent from the FLSA. 227 The Armenta court also noted that <strong>Labor</strong><br />
<strong>Code</strong> Sections 221-223, which have no counterparts under the FLSA, make it illegal to secretly pay<br />
employees less than the amount designated by statute or contract. 228 The court failed to explain,<br />
however, why the violation of these particular <strong>Labor</strong> <strong>Code</strong> statutes signaled an intent to treat those<br />
violations as minimum wage violations.<br />
The Armenta decision affects <strong>California</strong> law in several ways. First, allowing a minimum wage claim<br />
whenever there are some uncompensated work hours will allow employees who could not state a<br />
claim for overtime an alternative basis to sue. For example, unionized employees whose overtime<br />
claims are preempted by Section 301 of the <strong>Labor</strong> Management Relations Act may still be able to<br />
sue under <strong>California</strong> law for unpaid minimum wages. Indeed, the plaintiffs in Armenta were<br />
members of a union who had pleaded claims for overtime, but later ab<strong>and</strong>oned those claims<br />
because they recognized that those claims were preempted. 229 Minimum wage law claims, by<br />
contrast, are generally not preempted given that they can be resolved entirely independently of a<br />
collective bargaining agreement. 230<br />
Second, employees who sue for minimum wage violations can recover liquidated damages under<br />
<strong>Labor</strong> <strong>Code</strong> Section 1194.1, which are not available for other sorts of wage violations. If liquidated<br />
damages are awarded, then employees will recover twice the minimum wage (which would<br />
currently amount to $16 per hour) for each hour they can show they worked but received no pay.<br />
Third, plaintiffs will be able to plead minimum wage claims in any case where they allege some<br />
work time was unpaid. For example, in meal period cases where the employer is alleged to have<br />
recorded meal periods automatically whether or not the employees actually took them, employees<br />
may argue that they worked through the meal period, but were not paid for that work time. Those<br />
facts might trigger minimum wage claims now. Similarly, a claim that an employee worked<br />
controlled st<strong>and</strong>by time that the employer erroneously treated as unpaid will now trigger a minimum<br />
wage claim.<br />
A more recent case issued by the very same panel that decided Armenta suggests that Armenta<br />
may not apply in situations beyond its narrow facts. In Fitzgerald v. Skywest Airlines, Inc., 231 the<br />
plaintiff was a flight attendant. Her governing contract called for her to receive $1.60 an hour for<br />
“block time” while the aircraft is readied for flight, while passengers board <strong>and</strong> disembark, <strong>and</strong> for<br />
flight st<strong>and</strong>bys. On the whole, however, only a fraction of her hours were block time, the remainder<br />
227<br />
228<br />
229<br />
230<br />
231<br />
Armenta, 135 Cal. App. 4th at 323-24.<br />
Id.<br />
Id. at 318. Unionized employees’ overtime claims often fail because those employees generally work under a collective<br />
bargaining agreement that provides premium pay for all hours worked, which then brings the employees within the<br />
<strong>Labor</strong> <strong>Code</strong> Section 514 “collective bargaining exemption.”<br />
Id.<br />
155 Cal. App. 4th 411 (2007).<br />
Seyfarth Shaw LLP | www.seyfarth.com <strong>Litigating</strong> <strong>California</strong> <strong>Wage</strong> & <strong>Hour</strong> <strong>Class</strong> <strong>Actions</strong> (12th Edition) 54