What Happens in California When Your Employer Fails to Pay Arbitration Fees on Time?

It depends on why the payment was late — and the California Supreme Court's answer to that question in Hohenshelt v. Superior Court now governs one of the most important employee protections in California arbitration law. The ruling preserves the right of employees to exit arbitration when employers willfully or grossly negligently fail to pay required fees on time, while narrowing the circumstances under which a genuinely inadvertent delay triggers that same consequence.

Case: Hohenshelt v. Superior Court of Los Angeles County (Golden State Foods Corp., Real Party in Interest)

Court: Supreme Court of California

Case No.: S284498

Get to Know the Plaintiff: Hohenshelt v. Superior Court

Dana Hohenshelt was a former employee of Golden State Foods Corp. who sued his employer for discriminatory retaliation, failure to prevent discrimination, and related employment claims under California law. Like many California employees, Hohenshelt was subject to a mandatory arbitration agreement as a condition of his employment, and the dispute was compelled to private arbitration before JAMS (the Judicial Arbitration and Mediation Service). For more than a year, the parties arbitrated the case: conducting discovery, taking depositions, submitting dispositive motions, and preparing for a hearing. As the hearing date approached, JAMS issued invoices to Golden State Foods for arbitration fees. Those fees were not paid within the 30-day window California law requires.

Get to Know the Defendant: Hohenshelt v. Superior Court

Golden State Foods Corp. is a food service distribution company. As the employer and the drafter of the arbitration agreement, it bore the legal obligation under California Code of Civil Procedure Section 1281.98 to pay arbitration fees within 30 days of the invoice due date. When Golden State failed to meet that deadline — even by a short window — Hohenshelt argued the company had materially breached the arbitration agreement and that he was entitled to withdraw from arbitration and pursue his claims in court instead.

What Are the Allegations in the Complaint?

Hohenshelt's underlying employment claims allege discriminatory retaliation and related violations of California law during his employment with Golden State Foods. The case reached the California Supreme Court not on those underlying merits, but on the critical procedural question of what happens when an employer fails to timely pay arbitration fees under California law. According to the case record:

● JAMS issued invoices to Golden State Foods in July and August 2022 for arbitration fees

● On September 30, 2022, JAMS notified the parties that all fees had to be paid by October 28, 2022, or the scheduled hearing might be cancelled

● Hohenshelt immediately filed a letter with JAMS stating he was withdrawing from arbitration under Section 1281.98, citing Golden State's failure to pay within 30 days of the original invoice date

● Golden State Foods paid all outstanding fees by October 5, 2022; before the October 28 JAMS deadline, but after the 30-day window measured from the original invoice dates

● The trial court found the payment timely because it fell within the arbitrator's extended deadline; the Court of Appeal reversed, finding any late payment triggers Section 1281.98 automatically; the California Supreme Court took up the case to clarify the law

What Was the Main Question in the Case?

Two central legal questions were resolved. First: is California Code of Civil Procedure Section 1281.98; which requires employers to pay arbitration fees within 30 days or face forfeiture of the right to arbitrate — preempted by the Federal Arbitration Act? The Supreme Court said no: the statute is not preempted and remains valid California law. Second: does any late payment by the employer automatically constitute a "material breach" triggering the employee's right to exit arbitration? The Supreme Court said no to this as well — rejecting what it called the "rigid construction" that many courts had applied and replacing it with a more nuanced standard. A late payment triggers forfeiture of arbitration rights only when it was willful, grossly negligent, or fraudulent. A genuinely inadvertent or mistaken delay may be excused. The case was remanded for fact-finding on whether Golden State's late payment met that standard.

Why Does the Case Matter to California Employees?

This ruling is directly relevant to every California employee who is currently subject to a mandatory arbitration agreement — which encompasses millions of workers across the state.

● California law gives employees a meaningful protection when employers drag their feet on paying arbitration fees: if the employer's failure to pay was willful or grossly negligent, the employee can exit arbitration and take their case to court

● The Supreme Court's ruling confirms that this protection survives federal preemption challenges — employers cannot use the Federal Arbitration Act to strip employees of this right

● For employees in active arbitration, this case is a reminder to track arbitration fee invoices and payment deadlines carefully — if your employer misses a payment deadline, you may have the right to move to court, but acting promptly and getting legal advice before taking that step is essential

● The ruling also serves as a warning to employers: intentional or grossly negligent non-payment of arbitration fees is a serious violation with significant consequences, including the complete loss of the right to arbitrate

A Brief Overview of the Case

● November 2020: Dana Hohenshelt files suit against Golden State Foods Corp. in Los Angeles County Superior Court for discriminatory retaliation and related claims

● Compelled to arbitration: The trial court sends the case to JAMS arbitration pursuant to the parties' arbitration agreement

● Over one year: The parties conduct discovery, depositions, and briefing in anticipation of the arbitration hearing

● July–August 2022: JAMS issues arbitration fee invoices to Golden State Foods; the fees are not paid within 30 days of the invoice date

● September 30, 2022: JAMS notifies parties all fees must be paid by October 28, 2022

● Shortly after: Hohenshelt files a letter withdrawing from arbitration under Section 1281.98; Golden State pays all fees by October 5 — before the JAMS deadline but after the 30-day statutory window from the original invoices

● Trial court: Finds payment timely under the arbitrator's extended deadline; denies Hohenshelt's motion to exit arbitration

● Court of Appeal: Reverses — holds Section 1281.98 is not preempted by the FAA; any late payment triggers forfeiture; Hohenshelt may exit arbitration

● August 11, 2025: California Supreme Court (Case No. S284498) issues its decision: confirms Section 1281.98 is not preempted by the FAA; rejects rigid automatic forfeiture rule; holds forfeiture applies only to willful, grossly negligent, or fraudulent non-payment; case remanded for further fact-finding

FAQs: Hohenshelt v. Superior Court

Q: What is California Code of Civil Procedure Section 1281.98 and what does it require?

A: Section 1281.98 requires the party that drafted an employment or consumer arbitration agreement — typically the employer — to pay any required arbitration fees within 30 days of the invoice due date. If that deadline is missed, the drafting party is deemed to have materially breached the agreement, and the employee may elect to withdraw from arbitration and pursue their claims in court.

Q: What happens if an employer misses the 30-day arbitration fee deadline?

A: Under the Supreme Court's ruling in Hohenshelt, the employee may be able to exit arbitration and proceed in court — but only if the employer's failure to pay was willful, grossly negligent, or fraudulent. A genuinely inadvertent or mistaken late payment may be excused by the court.

Q: What should I do if my employer misses an arbitration fee payment deadline?

A: Act promptly and speak with an employment attorney before taking any steps. The right to exit arbitration under Section 1281.98 is an election that must be made carefully, and your attorney can evaluate whether the circumstances of the late payment support a motion to withdraw.

Q: Does the Federal Arbitration Act override California's arbitration fee payment rules?

A: No. The California Supreme Court held in Hohenshelt that Section 1281.98 is not preempted by the FAA. California's arbitration fee payment protections remain valid and enforceable.

Q: If I am compelled to arbitration, how do I track whether my employer is paying fees on time?

A: Once arbitration begins, request confirmation from the arbitration service provider (such as JAMS or AAA) when invoices are sent and when payments are received. Keep copies of all invoices and payment confirmations. If you receive notice that fees have not been paid, get legal advice immediately.

Q: Can an employer agree to an extended payment deadline with the arbitration provider to avoid the 30-day rule?

A: The JAMS rules and similar provider rules may allow for administrative extensions, but under California law, the 30-day statutory clock generally runs from the original invoice due date regardless of any administrative extension the arbitration provider sets. Whether a mutually agreed extension would be recognized by a California court is a fact-specific question an employment attorney can help evaluate.

Have Questions About Your Rights Under an Arbitration Agreement?

Hohenshelt v. Superior Court is a landmark ruling that preserves an important employee protection while clarifying when and how it applies. If you are in arbitration with your employer, have concerns about how your arbitration agreement operates, or want to understand your rights if fees go unpaid, contact Blumenthal Nordrehaug Bhowmik DeBlouw LLP. Knowledgeable employment law attorneys are ready to assist you in law firm offices located in Riverside, San Francisco, Sacramento, San Diego, Los Angeles, and Chicago.

Can California Workers Bring a “Headless” PAGA Claim to Avoid Arbitration?

In Leeper v. Shipt, a California worker filed a PAGA lawsuit seeking penalties on behalf of himself and other employees (while disclaiming any individual PAGA claim in an attempt to avoid arbitration). However, the Court of Appeal didn’t accept the argument, and as of March 2026, the California Supreme Court is still reviewing the question presented in Leeper v. Shipt, Inc.

Case: Leeper v. Shipt

Court: Los Angeles County Superior Court

Case No. 24STCV06485

Do You Know the Plaintiff in the Case?

​The plaintiff is Christina Leeper. According to the published Court of Appeal opinion, she entered into an independent contractor agreement with Shipt on March 19, 2019, to provide services as a Shipt shopper. Leeper filed an employment law complaint alleging Shipt misclassified her and other workers as independent contractors and thereby violated multiple provisions of the California Labor Code. She filed the Los Angeles County Superior Court action on March 14, 2024, styling it as a representative PAGA complaint seeking non-individual penalties and related relief.

​Do You Know the Defendant in the Case?

Shipt, Inc. and its parent company, Target Corporation, are listed as the defendants in the case. The Court of Appeal opinion describes Shipt as an online ordering platform whose members arrange for Shipt shoppers to purchase and deliver goods from local merchants. The opinion also states that Leeper’s agreement included an arbitration clause requiring disputes to be resolved through binding arbitration, and that the agreement applied to Shipt and certain related entities, including parents. At this stage of the broader Supreme Court review, the dispute is less about the underlying worker-classification allegations and more about how PAGA claims interact with arbitration agreements under California law.

The Plaintiff’s Allegations: Leeper v. Shipt

Leeper’s complaint alleged Shipt misclassified her and similarly situated workers as independent contractors in violation of the Labor Code. The procedural dispute that made this case significant, however, is narrower: she pleaded only a single count for non-individual PAGA penalties and expressly alleged that she was bringing the case on a representative, non-individual basis. Shipt moved to compel arbitration of the individual portion of the PAGA action, while Leeper argued there was no individual claim to arbitrate because none had been pleaded. The trial court agreed with Leeper, but the Court of Appeal reversed and held that every PAGA action necessarily includes an individual PAGA claim.

Learn More About PAGA: PAGA is short for the Private Attorneys General Act. In simple terms, it allows an aggrieved employee to step into the shoes of the state and seek civil penalties for Labor Code violations affecting themselves and other employees.

What Is a Headless PAGA Claim? A “headless” PAGA claim is shorthand for a lawsuit that tries to pursue only non-individual or representative PAGA penalties for other workers, while disclaiming the plaintiff’s own individual PAGA claim. That is the core issue now under review in Leeper.

What Is the Main Question in the Case?

The main question in Leeper v. Shipt is whether every PAGA case automatically includes both an individual component and a representative component, even if the complaint tries to plead only representative relief. The Court of Appeal answered yes, relying on Labor Code section 2699’s language authorizing an aggrieved employee to sue “on behalf of the employee and other current or former employees.” Because of that reading, the appellate court held Leeper’s individual PAGA claim had to be sent to arbitration and the representative portion stayed. The California Supreme Court is now reviewing whether California law permits a plaintiff to bring only a non-individual PAGA action and thereby avoid arbitration of an individual claim.

FAQ: Leeper v. Shipt

Q: What Is the Procedural Question Asked by Leeper v. Shipt?

A: Leeper v. Shipt is a California PAGA and arbitration case about whether a worker can file a representative-only, or “headless,” PAGA lawsuit without including an individual PAGA claim.

Q: What Is the Purpose of a PAGA Claim?

A: The PAGA claim’s primary purpose is to ensure, enforce, and deter unlawful business and labor practices in California, with civil penalties often distributed between the state and employees.​

Q: Why Did the Court of Appeal Reverse the Trial Court’s Decision in Leeper v. Shipt?

A: The Court of Appeal reversed the trial court’s decision and held that every PAGA action necessarily includes an individual PAGA claim. It directed the lower court to compel arbitration of Leeper’s individual PAGA claim and stay litigation of the representative portion.

Q: What Makes Leeper v. Shipt Significant for California Workers?

A: The case could significantly shape how employers and employees handle arbitration agreements in PAGA litigation across California, particularly in cases where workers are classified as independent contractors.

Q: What Does “Stay the Representative Claim” Mean?

A: “Staying the representative claim” means the court pauses proceedings on the representative portion while the arbitrable individual portion goes forward in arbitration. The Court of Appeal said California’s procedural rules require that kind of stay once arbitration has been ordered on an issue involved in the pending action.

Q: How Does California Labor Law Define an Independent Contractor?

A: According to California labor law, an independent contractor is a worker who is free from the hiring entity's control, performs work outside the company's normal business, and operates an independently established business. California strictly applies the "ABC test," presuming workers are employees unless all three factors of the standard test are met.

If you have questions about PAGA claims, arbitration agreements, worker misclassification, or other California employment law issues that may affect your right to seek penalties for Labor Code violations, the employment law attorneys at Blumenthal Nordrehaug Bhowmik De Blouw LLP can help. Contact one of our offices in Los Angeles, San Diego, San Francisco, Sacramento, Riverside, or Chicago today to learn how to hold your employer accountable.

Did Blackstone Violate PAGA by Not Providing Legally Required Breaks for California Employees?

A California worker has filed a representative PAGA action against Blackstone Consulting, Inc., claiming the company systematically violated wage and break laws across its California operations.

Case Name: Victor Fernandez v. Blackstone Consulting, Inc.

Case Number: 24CV439842

Court: Santa Clara County Superior Court

Fernandez v. Blackstone Consulting: The Plaintiff's Allegations

Plaintiff Victor Fernandez brings this lawsuit as a Private Attorneys General Act (PAGA) representative, asserting labor code violations on behalf of himself and other aggrieved employees. Fernandez alleges that he and others were denied legally protected rest and meal periods, accurate wage statements, and full pay for all hours worked. As the representative plaintiff, Fernandez seeks civil penalties under California's PAGA statute rather than traditional damages.

More About the Defendant: Fernandez v. Blackstone Consulting

Blackstone Consulting, Inc. is a California-based company that provides a range of outsourced services, including facilities management and food service operations. The company employs a large number of hourly, non-exempt workers across the state. In this case, Blackstone is accused of maintaining unlawful labor practices in its management of timekeeping, breaks, and wage payments for its frontline employees.

Key Legal Question: Fernandez v. Blackstone Consulting

The central legal question is whether Blackstone Consulting, Inc. has violated California's Labor Code in a manner that triggers civil penalties under the Private Attorneys General Act (PAGA). Specifically, the court will evaluate whether the employer failed to meet obligations regarding rest and meal breaks, timekeeping, wage statements, and sick pay, and whether those violations affected a broader class of aggrieved employees.

Fernandez v. Blackstone Consulting: The Allegations

The complaint alleges multiple violations of the California Labor Code, including failure to provide timely and accurate wage statements, failure to accurately track and compensate for all time worked, and failure to ensure that employees receive their required meal and rest breaks. Other alleged violations include failure to pay minimum and overtime wages, underpayment of sick leave, and the denial of suitable seating for workers where required. The suit claims these practices were systemic and that Blackstone failed to correct them in compliance with state law.

Legal Implications: Fernandez v. Blackstone Consulting

This case carries significant weight under PAGA, which allows employees to step into the role of state enforcement agents and pursue penalties for widespread violations of the Labor Code. If the court finds in favor of the plaintiff, Blackstone could face substantial civil penalties payable to both the state and the impacted employees. Additionally, the case may lead to court-ordered changes in Blackstone's labor policies, reinforcing the broad reach of PAGA in deterring systemic noncompliance.

Fernandez v. Blackstone Consulting: The Employer's Position

As of now, Blackstone Consulting, Inc. has not filed a formal response to the complaint. No public statements have been made regarding the allegations. In similar cases, employers often argue that policies are compliant, that violations were isolated rather than systemic, or that any missed breaks or wage discrepancies were inadvertent and not subject to penalties under PAGA.

Why This Case Matters: Fernandez v. Blackstone Consulting

This lawsuit highlights California's strong employee protections under PAGA, especially for hourly workers in industries with structured scheduling and timekeeping systems. It underscores the responsibility employers have not only to pay workers correctly but also to document that pay accurately and protect their rights to breaks and rest. For employees, this case reinforces their ability to seek state-backed remedies even when not pursuing a traditional class action.

What Comes Next for Fernandez v. Blackstone Consulting

Filed on May 28, 2024, in the Santa Clara County Superior Court, the case is still in its early stages of procedural development. Blackstone is expected to file an answer or demurrer, and the court will eventually assess whether the plaintiff's claims merit a full review under PAGA. If it proceeds, the case could involve discovery, pre-trial motions, and settlement discussions. Any penalties awarded would be split between the state of California and the aggrieved employees.

FAQ: Fernandez v. Blackstone Consulting

Q: What is a PAGA lawsuit?

A: PAGA allows employees to sue employers for civil penalties on behalf of the state when Labor Code violations affect groups of workers, not just the individual plaintiff.

Q: Who can bring a PAGA claim?

A: Any current or former employee who has experienced a qualifying Labor Code violation can bring a representative action under PAGA after providing proper notice to the California Labor and Workforce Development Agency (LWDA).

Q: What are the specific violations Blackstone is accused of?

A: Alleged violations include failure to provide meal and rest breaks, failure to pay minimum and overtime wages, inaccurate wage statements, and lack of suitable seating for employees.

Q: Will employees affected by this incident receive compensation?

A: If penalties are awarded, 25% is distributed to affected employees, and 75% goes to the state. PAGA cases don't award traditional damages but can result in significant financial penalties.

Q: What could this mean for other California employers?

A: The case serves as a warning: noncompliance with wage and break laws—even technical violations- can lead to costly enforcement actions under PAGA.

Do you have questions about filing a California wage and hour complaint? Please contact Blumenthal Nordrehaug Bhowmik DeBlouw LLP. Knowledgeable employment law attorneys are ready to assist you in various law firm offices in Riverside, San Francisco, Sacramento, San Diego, Los Angeles, and Chicago.

Supreme Court on Groff v. DeJoy: Clarifying Religious Accommodation Requirements for Employers

Groff v. DeJoy clarified legal requirements employers must meet for employees seeking religious accommodations at work (referencing the Civil Rights Act of 1964, Title VII). Before the U.S. Supreme Court's landmark decision in this case, the "de minimis" standard was accepted. However, the Supreme Court's decision redefined the standard for religious accommodations in the workplace, moving beyond the previous standard and emphasizing that employers must demonstrate that accommodating an employee's religious observance would substantially increase costs relative to their business operations.

Case: Groff v. Dejoy

Court: U.S. Supreme Court

Case No.: 22–174

The Plaintiff: Gerald E. Groff v. Louis DeJoy

Gerald Groff, an evangelical Christian and former postal worker in Pennsylvania sought exemption from Sunday work to observe his Sabbath. Initially, the U.S. Postal Service (USPS) accommodated his request. However, as operational demands increased, Groff was scheduled for Sunday shifts. However, Groff refused to work the assigned Sunday shifts (due to religious reasons), and his refusal to work Sunday shifts led to disciplinary actions that prompted him to resign from his position and file a labor law lawsuit alleging his employer violated Title VII.

The Defendant: Gerald E. Groff v. Louis DeJoy

The USPS was represented by Louis DeJoy, Postmaster General, in the lawsuit. USPS argued that to exempt Groff from Sunday shifts posted an undue hardship that required them to reassign his duties to other workers, and claimed the situation would result in potential disruptions to mail delivery.

The Case: Gerald E. Groff v. Louis DeJoy

The court ruled for Groff - unanimously. The court clarified the "undue hardship" standard under Title VII as requiring employers to show that providing requested accommodations for an employee's religious practices would significantly increase costs relative to overall operations costs. The clarification moved away from the previous interpretation that allowed employers to deny accommodations based on a minimal burden.

Can Employees Obtain Religious Accommodations at Work?

Employees are empowered to seek accommodations for their religious practices, with the assurance that their requests cannot be dismissed based on minimal inconvenience to the employer. Employers must carefully consider requests for religious accommodations and make sure that any accommodations request denial is based on evidence showing fulfilling the request would cause a significant increase in costs or a significant disruption of day-to-day operations.

If you need to discuss filing a wage and hour complaint, contact Blumenthal Nordrehaug Bhowmik DeBlouw LLP. Experienced and knowledgeable employment law attorneys are ready to assist you at one of their various law firm offices in Riverside, San Francisco, Sacramento, San Diego, Los Angeles, and Chicago.

Landmark Viking River Cruises Case: Supreme Court Decision Limits PAGA Claims

The 2022 Supreme Court ruling in the Viking River Cruises Case significantly altered the legal landscape surrounding California's Private Attorneys General Act (PAGA). In Viking River Cruises v. Moriana, the Court concluded that individual claims under PAGA could be forced into arbitration. Importantly, the Court indicated that when individual claims go to arbitration, representative claims made on behalf of other employees would no longer have standing and must be dismissed.

Case: Viking River Cruises v. Moriana

Court: Supreme Court

Case No.: 20-1573

The Plaintiff: Viking River Cruises v. Moriana

Angie Moriana, a former employee of Viking River Cruises, filed a lawsuit under California's PAGA, alleging that the company violated several provisions of the California Labor Code. Moriana sought to represent herself and other aggrieved employees, bringing both individual and representative claims.

The Defendant: Viking River Cruises v. Moriana

Viking River Cruises contended that Moriana had signed an employment agreement mandating individual arbitration for labor disputes and explicitly waiving rights to bring class or representative actions. The company argued that the Federal Arbitration Act (FAA) required the enforcement of such arbitration agreements, thereby blocking Moriana's representative claims in court.

The Case: Viking River Cruises v. Moriana

The June 2022 Supreme Court decision was a decisive ruling that stated the FAA mandates the enforcement of arbitration agreements even in the context of PAGA claims. According to the decision, employees bound by arbitration agreements must arbitrate their individual claims and, upon arbitration, lose standing to pursue representative claims for other employees in court. However, the California Supreme Court complicated matters in 2023 by clarifying that plaintiffs could still bring representative PAGA claims in state court even if their individual claims proceeded separately through arbitration.

If you need to discuss filing a wage and hour complaint, contact Blumenthal Nordrehaug Bhowmik DeBlouw LLP. Experienced and knowledgeable employment law attorneys are ready to assist you at one of their various law firm offices in Riverside, San Francisco, Sacramento, San Diego, Los Angeles, and Chicago.

California’s Metal Container (MCC) Faces a PAGA-Only Action Claiming Violations

In a recent PAGA-Only action, Metal Container, a California product packaging service provider, faces allegations of labor code violations.

The Case: John Dedet v. Metal Container (MCC) LP

The Court: Los Angeles County Superior Court

The Case No.: CVRI2405838

The Plaintiff: John Dedet v. Metal Container (MCC) LP

The plaintiff, John Dedet, worked for Metal Container (MCC) from July 2021 through June 2024 as an hourly nonexempt employee. As a nonexempt hourly employee, Dedet was entitled to labor law protections, including minimum wage requirements, overtime pay regulations, mandatory meal breaks and rest periods, and more.

The Defendant: John Dedet v. Metal Container (MCC) LP

The defendant, Metal Container (MCC) LP, is a California company and employer that provides product packaging services throughout the state—according to the plaintiff, Dedet, Metal Container (MCC) LP failed to provide their workers with meal breaks and rest breaks mandated by labor law. Failing to comply with rest period and meal break requirments often leads to additional violations. In this case, the plaintiff claims the standard practice allegedly meant lost wages for workers.

The Allegations: John Dedet v. Metal Container (MCC) LP

Dedet claims that Metal Container engaged in several labor law violations that were connected to their standard operating processes. The PAGA-Only action alleges violations of Labor Code § 2699 and California Labor Code §§ 201-203, 204, 210, 218, 221, 226(a), 226.7, 227.3, 246, 510, 512, 558(a)(1)(2), 1194, 1197, 1197.1, 1198, 2100, and 2802.

What's the Definition of California's PAGA-Only Action?

In California, employees have the right to initiate a lawsuit under the Private Attorneys General Act (PAGA), which serves as a tool for the state to uphold labor laws via employees who act on behalf of the state's labor enforcement agencies. A PAGA-only lawsuit primarily serves as a regulatory measure to safeguard public interests, not for the personal gain of any individual. Instead of pursuing personal damages or restitution, this type of action empowers an employee to act as a private enforcer of the California Labor Code, effectively granting them the role of a private attorney general.

The Case: John Dedet v. Metal Container (MCC) LP

In John Dedet v. Metal Container (MCC) LP, the plaintiff filed a PAGA-Only action currently pending in the Riverside County Superior Court.

If you have questions about filing a California PAGA-Only action, don't hesitate to get in touch with Blumenthal Nordrehaug Bhowmik DeBlouw LLP. Knowledgeable employment law attorneys are ready to assist you in various law firm offices in Riverside, San Francisco, Sacramento, San Diego, Los Angeles, and Chicago.

Did Medical Management International, Inc. Fail to Reimburse Employees for Work Expenses?

In recent news, a California lawsuit alleges that Medical Management International, Inc. violated labor law when they failed to reimburse employees for necessary work expenses.

The Case: Amber Wolfing v. Medical Management International, Inc.

The Court: Solano County Superior Court of the State of California

The Case No.: 24CV007705

The Plaintiff: Amber Wolfing v. Medical Management International, Inc.

Amber Wolfing, who was engaged as a non-exempt hourly employee by the defendant in August 2019, initiated a class action lawsuit against Medical Management International. She claims that the company's illegal policies and practices resulted in the failure to adequately compensate their employees, as required by labor law.

The Defendant: Amber Wolfing v. Medical Management International, Inc.

Medical Management International, Inc., which offers veterinary healthcare services across California, is the defendant in the case brought by the plaintiff, Amber Wolfing. Wolfing alleges that during her employment, she was compelled to work during her off-duty meal breaks and also before shifts, performing mandatory COVID checks and temperature screenings without pay. Additionally, she contends that the company habitually engaged in "rounding" employees' clock-in and clock-out times in a manner that consistently benefited the employer, consequently leading to underpayment for the actual hours worked by employees.

What is "Time Worked" According to California Labor Law?

Under California labor law, "time worked" is defined as any period during which an employee remains under an employer's control, encompassing all instances where the employee is either actively working or is allowed to work, regardless of necessity. Instances of "time worked" include:

  • Periods when the employee is on duty, present on the employer's premises, or stationed at a designated work location.

  • Times when the employee is allowed to work, even if they are not engaging in their primary job functions.

  • Moments when the employee must remain on the employer's premises or at a specific location controlled by the employer, which limits their ability to engage in personal activities.

This broad definition ensures that employees in California receive compensation for all time spent under employer directives, not limited to just productive work time. It includes time spent waiting, on standby, traveling under certain conditions, and performing other duties as dictated by the job and level of control exercised by the employer. This approach guarantees that workers are paid for all the time their freedom is restricted by job requirements.

The Case: Amber Wolfing v. Medical Management International, Inc.

Amber Wolfing alleges that due to the routine practice of rounding employee work hours at Medical Management International, Inc., she, along with other members of the class action in California, were deprived of their rightful minimum wage, overtime compensation, and legally mandated meal breaks, contrary to both federal and California Labor Laws. She argues that the defendant's failure to compensate employees for all hours worked is demonstrable through the company's own business records. The case, Amber Wolfing v. Medical Management International, Inc., is presently active in the Solano County Superior Court in California.

If you have questions about filing an employment law lawsuit, please contact Blumenthal Nordrehaug Bhowmik DeBlouw LLP. Experienced employment law attorneys are ready to assist you in various law firm offices in San Diego, San Francisco, Sacramento, Los Angeles, Riverside, and Chicago.