Justia Class Action Opinion Summaries
Articles Posted in Labor & Employment Law
Levanoff v. Dragas
Plaintiffs were employees of Buffalo Wild Wings Restaurants owned and/or operated by defendants. In their lawsuit against defendants, plaintiffs asserted individual and class claims under various provisions of the Labor Code and the California Unfair Competition Law, and claims for violations of the Labor Code Private Attorneys General Act of 2004. The trial court certified eight classes and two subclasses, but later decertified all classes except for a subclass of dual rate employees who allegedly were underpaid by defendants for overtime hours worked. We refer to this subclass as the dual rate overtime subclass. The issue presented by this appeal was whether defendant employers violated California law in their method of calculating the regular rate of pay for purposes of compensating overtime hours of employees who worked at different rates of pay within a single pay period (dual rate employees). Defendants used the rate-in-effect method, by which dual rate employees were paid for overtime hours based on the rate in effect when the overtime hours began. Plaintiffs contended California law required defendants to use the weighted average method, by which dual rate employees were paid for overtime based on an hourly rate calculated by adding all hours worked in one pay period and dividing that number into the employee’s total compensation for the pay period. The trial court found, among other things, that defendants did not violate California employment law by using the rate-in-effect method for calculating the overtime rate of pay. Based on the ruling in the bench trial, the trial court decertified the dual rate overtime subclass and dismissed the PAGA claims. Plaintiffs appealed the order decertifying the dual rate overtime subclass and the order dismissing the PAGA claims. The Court of Appeal affirmed: California law did not mandate the use of the weighted average method, and defendants’ dual rate employees, including plaintiffs, overall received net greater overtime pay under the rate-in-effect method than they would have received under the weighted average method. View "Levanoff v. Dragas" on Justia Law
Salazar v. See’s Candy Shops, Inc.
The Court of Appeal affirmed the trial court's denial of plaintiff's motion to certify a class of employees of See's. Plaintiff alleges that See's did not provide required second meal breaks to shop employees who worked shifts longer than 10 hours.The court concluded that the trial court properly exercised its discretion in denying class certification where substantial evidence supports the trial court's conclusion that individual issues would predominate at trial. The court explained that the trial court carefully analyzed the evidence that plaintiff presented in support of her claim that she could establish liability through common proof. In light of evidence including time records showing that 24 percent of shifts longer than 10 hours actually included a second meal period, the trial court reasonably determined that at least some class members were offered a second meal period in accordance with the law. Therefore, the court explained that individual testimony would be necessary to show that See's consistently applied an unlawful practice. The court also concluded that the trial court did not abuse its discretion in deciding that plaintiff's trial plan was inadequate to manage individual issues. View "Salazar v. See's Candy Shops, Inc." on Justia Law
Gomez v. Regents of the University of Cal.
Guivini Gomez was a former employee of the Regents of the University of California (Regents) who sued the Regents, as the named plaintiff in a purported class action, claiming the Regents failed to pay her the required minimum wage for all hours she worked. However, she did not allege the Regents set her hourly wage below the minimum wage as established by California law. Instead, she contended the Regents’ time-keeping procedures of rounding hours and automatically deducting 30 minute meal breaks resulted in her not receiving the minimum wage for all hours she actually worked. In addition to claiming the Regents did not pay her the minimum wage, Gomez also sought penalties under the Private Attorneys General Act. The superior court sustained the Regents’ demurrer without leave to amend and entered judgment in their favor. Gomez appealed, but finding no reversible error in the trial court's decision, the Court of Appeal affirmed. View "Gomez v. Regents of the University of Cal." on Justia Law
Metcalfe v. Alaska
Members of the plaintiff class were former Alaska State employees. When they enrolled in the State employee retirement system, a statute provided that if they left eligible employment, withdrew their contributions to the system, and later returned to eligible employment, they could repay their withdrawn contributions, be reinstated to their original benefits level, and have their credited service time restored. The statute was later repealed. The superior court ruled on summary judgment that this repeal did not diminish or impair the former employees’ accrued benefits and was therefore constitutional. The Alaska Supreme Court concluded the statutory reinstatement right was an accrued benefit of the retirement system protected against diminishment or impairment by article XII, section 7 of the Alaska Constitution. The Court therefore reversed the superior court’s judgment and remanded the case for further proceedings. View "Metcalfe v. Alaska" on Justia Law
Betancourt v. Transportation Brokerage Specialists, Inc.
Plaintiff worked as a delivery driver for TBS, a “last-mile” delivery company whose primary client was Amazon.com. At the start of his employment, he signed an At-Will Employment, Non-Disclosure, Non-Solicitation, Class-Action Waiver and Arbitration Agreement. Plaintiff filed suit asserting violations of the Labor Code, California’s Unfair Competition Law, and the Private Attorneys General Act, unlawful retaliation, and wrongful termination. The trial court denied TBS’s motion to compel the plaintiff to arbitrate his individual claims and to dismiss his class claims. The court found that the plaintiff was exempt from Federal Arbitration Act (9 U.S.C. 1, FAA) coverage because he was a transportation worker engaged in interstate commerce and that the class action waiver was unenforceable, rendering the arbitration agreement unenforceable.The court of appeal affirmed that the plaintiff is exempt from FAA coverage and that the class action waiver is unenforceable under California law. The court reversed the order denying the motion to compel arbitration of the plaintiff’s individual claims; the trial court improperly found the arbitration agreement unenforceable in its entirety rather than severing the class action waiver provision from the remainder of the employment agreement and considering the validity of the arbitration provision with respect to the individual claims for
unlawful retaliation and wrongful termination. View "Betancourt v. Transportation Brokerage Specialists, Inc." on Justia Law
Capriole v. Uber Technologies, Inc.
The First Circuit dismissed this appeal from the United States District Court for the District of Massachusetts denying Appellant's first preliminary injunction motion, holding that this Court had no appellate jurisdiction.Appellant filed a class action complaint in the Massachusetts district court under the Class Action Fairness Act, 28 U.S.C. 1332(d)(2) alleging that Uber Technologies, Inc. misclassified him and other drivers as independent contractors instead of employees. Appellant filed a motion for a preliminary injunction requiring Uber to alter its classification. The district court denied the motion. The First Circuit affirmed, holding that, due to the procedural posture of this case, this Court did not have jurisdiction to hear the appeal. View "Capriole v. Uber Technologies, Inc." on Justia Law
Wilson v. The La Jolla Group
Plaintiffs Mosanthony Wilson and Nancy Urschel brought a putative wage-and-hour class action against defendant The La Jolla Group (LJG). Plaintiffs worked for LJG as signature gatherers on behalf of political campaigns and political action committees. LJG classified them as independent contractors and paid them per signature submitted. In the underlying lawsuit, plaintiffs alleged that LJG misclassified them and, as employees, they were entitled to a minimum wage, overtime pay, meal and rest breaks, expense reimbursement, timely final wage payment, and itemized wage statements. Plaintiffs moved for certification of a class of LJG signature gatherers, which the trial court denied. Plaintiffs appealed the order denying class certification, contending the trial court erred by finding common questions did not predominate and the class action procedure was not superior to individual actions. They also contended the court erred by not granting a related motion for reconsideration. After review, the Court of Appeal agreed that on the current record, the trial court erred by declining to certify a class for one cause of action, for failure to provide written and accurate itemized wage statements. The Court therefore reversed the order denying class certification in part, as to that cause of action only, and remand for reconsideration. Otherwise, the Court concluded the trial court did not err and affirmed. View "Wilson v. The La Jolla Group" on Justia Law
Jianmin Jin v. Shanghai Original, Inc.
Plaintiff filed a putative class action on behalf of himself and similarly-situated employees of Joe's Shanghai restaurant, alleging violations of the New York Labor Law (NYLL). The district court certified the class action under Federal Rule of Civil Procedure 23(b)(3) of all nonmanagerial employees at the Flushing, Queens location of Joe's Shanghai on the NYLL claims. However, five days before the trial was scheduled to start, the district court sua sponte decertified the class, determining that class counsel was no longer adequately representing the class. The district court held a bench trial on plaintiff's individual claims and entered judgment in favor of plaintiff against three of the defendants.As a preliminary issue, the Second Circuit concluded that, although plaintiff prevailed on the merits of his claims, this appeal is not moot because he maintains standing as to the class certification issue. On the merits, the court concluded that because class counsel's conduct made clear that counsel was no longer adequately representing the class, the district court acted within its discretion in decertifying the class. In this case, the record is replete with counsel's shortcomings before the class was decertified. Accordingly, the court affirmed the district court's judgment. View "Jianmin Jin v. Shanghai Original, Inc." on Justia Law
Anderson v. Weinert Enterprises Inc.
Weinert roofing employees could drive directly to job sites around Green Bay or could carpool from the shop using a company truck. For carpool employees, Weinert paid travel time at time-and-a-half the minimum wage and did not count travel time toward an employee’s 40-hour workweek. Weinert paid more than minimum wage for job-site work; job-site overtime pay was higher than travel time pay. Anderson, a Weinert seasonal employee, filed a collective action under the Fair Labor Standards Act, 29 U.S.C. 216(b), and Wisconsin law. Three other employees joined the action. Anderson converted the collective action into an individual FLSA action, which settled. Anderson then sought class certification (FRCP 23) for the state claims. Anderson identified 37 former or current Weinert employees to include in the class and requested the inclusion of employees Weinert expected to hire in 2019.The Seventh Circuit affirmed the denial of class certification. Employees to be hired in a future period cannot be included in the class. Anderson failed to show that joinder of the 37 employees in a single lawsuit (with multiple named plaintiffs) would be impracticable, as required by Rule 23(a). Anderson did not identify any difficulty in locating or contacting potential class members; the class lacked the geographical spread that might render joinder impracticable. Prevailing under the Act allows a plaintiff to recover attorneys’ fees and costs, offsetting some of the disincentive created by the small damages available. The numerosity requirement focuses on whether joinder would be impracticable, not whether each potential class member could bring a separate lawsuit. View "Anderson v. Weinert Enterprises Inc." on Justia Law
Hildebrandt v. Staples the Office Superstore, LLC
Plaintiff appealed the trial court's grant of summary judgment in favor of Staples. The Court of Appeal held that the trial court erred in applying the class action tolling rules articulated in Jolly v. Eli Lilly & Co. (1988) 44 Cal.3d 1103. The court explained that plaintiff was entitled, due to the pendency of the Wesson and Hatgis class certification proceedings, to claim the benefit of the class action tolling rule established by the United States Supreme Court in American Pipe & Construction Co. v. Utah (1974) 414 U.S. 538, as adopted by Jolly. Therefore, with the exception of the claim for failure to furnish accurate itemized wage statements, the trial court erred in ruling that plaintiff's claims were time barred. In this case, because plaintiff concedes his claim for failure to furnish accurate itemized wage statements is time barred, even if tolling applies, the court affirmed the summary adjudication of that claim. The court reversed summary judgment in all other respects. View "Hildebrandt v. Staples the Office Superstore, LLC" on Justia Law