Court Approves Farmers Insurance Overtime Pay Settlement

In recent news, the court approved Farmers Insurance investigators’ $5.5 million overtime settlement. While the settlement resolves the case, this is not the first time Farmers violated the FLSA and California labor law. 

The California Wage and Hour Lawsuit Alleged Overtime Violations: 

The California wage and hour lawsuit alleged Farmers failed to pay overtime, and provide meal breaks and rest periods. The approved settlement applies to Special Investigators who worked for a California Farmers location from 2013 to 2018. While this settlement brings the recent California overtime lawsuit to a close, it’s not the first time Farmers has faced overtime pay violations. And it’s not the first time they’ve settled an overtime claim either. 

Judge Approves Farmers Overtime Pay Lawsuit Settlement: 

California federal Judge Hixson approved the settlement in late August 2020. The judge stated that settling the case was the quicker and easier path to resolution in comparison to continued litigation (litigation already extended over 3 years). With the approved settlement, Farmers special investigators and former special investigators can see a guaranteed route to payment. Each of about 80 plaintiffs in the case will receive about $47,000, which the judge noted was a “sizable” recovery. 

Other Famers Overtime Lawsuits and Overtime Lawsuit Settlements: 

Farmers Call Center Employees in 2011: Farmers isn’t new to overtime pay violation allegations or overtime lawsuits or even overtime lawsuit settlements. In 2011, Farmers agreed to a $1.52 million overtime pay settlement for 3,459 call center employees (that worked from Jan. 1, 2009 through May 10, 2010 in Florida, Kansas, Michigan, Oklahoma, Oregon, and Texas) after investigations discovered “significant systemic violations” of the FLSA overtime and accurate record provision. The settlement terms required Farmers to maintain future FLSA compliance with proper records and accurate compensation for all hours Farmers employees work. 

Farmers Claims Adjusters in 2014: In 2014, a group of Farmers claims adjusters filed a California wage and hour lawsuit alleging failure to pay overtime, and failure to provide rest periods and meal breaks. Close to two years down the road, Farmers settled the lawsuit with a $4.9 million settlement to 2,114 plaintiffs (Farmers claims adjusters employed between September 2011 through August 2016). 

The Most Recent Farmers Overtime Pay Settlement: The recent overtime settlement stemmed from a wage and hour lawsuit filed in 2017 by Farmers Insurance special investigators (David Deluca et al. v. Farmers Insurance Exchange et al., case number 3:17-cv-00034). The lawsuit was filed in the U.S. District Court for the Northern District of California. 

If you have questions about how to identify California labor law violations or if you need to file an overtime lawsuit, please get in touch with Blumenthal Nordrehaug Bhowmik DeBlouw LLP. Experienced employment law attorneys are ready to assist you in any one of various law firm offices located in San Diego, San Francisco, Sacramento, Los Angeles, Riverside, and Chicago.

The Apple Employee Bag-Check Class Action Returns

The Apple employee bag-check class action decision from the U.S. Court of Appeals for the Ninth Circuit had Apple paying retail workers for any time spent waiting their turn for mandatory bag checks. The Ninth Circuit decision was unanimous and aligned with the previous California Supreme Court ruling that employees' time spent being screened after their work shift is compensable.  

The Ninth Circuit Decision that Apple Should Pay Employees Waiting for Bag Checks

The Ninth Circuit found that the U.S. District Court that initially presided over the Apple employee bag-check lawsuit erred when they handed Apple a victory. The appeals court found that the California Supreme Court's holding means employees are now entitled to summary judgment on the issue.

The Original Apple Mandatory Employee Bag-Check Lawsuit: 

The lawsuit asking whether or not the time Apple employees spend in line waiting for a mandatory post-shift bag check is compensable or not was filed in 2013. The wage and hour lawsuit claimed that Apple's policy requiring its employees to clock out before they complete the mandatory bag check resulted in 1-1.5 hours of unpaid time at work each week on average. Class-action status was granted in 2015. 

Apple Bag-Check Lawsuit: California Supreme Court Decision

The California Supreme Court's decision in February determined that the time Apple employees spent waiting for the mandatory bag checks before they could leave after work was compensable under the California Industrial Welfare Commission Wage. California Industrial Welfare Commission Wage requires employers to compensate employees for all time when they are under their employer's control. The Supreme Court's findings were based on a few factors: 

1. Exit bag searches were mandatory for all employees leaving work, and therefore involved a significant degree of employer control. 

2. The mandatory nature of the bag searches was enforced by potential disciplinary action. 

3. The bag searches exist primarily for the employer's benefit. 

Apple Bag-Check Lawsuit: Ninth Circuit Decision 

The Ninth Circuit court agreed with the California Supreme Court – rejecting Apple's arguments that:

1. Employees can choose not to bring bags to work to avoid the mandatory bag checks. 

2. Whether the policy was enforced through discipline was disputable.  

The court found that regardless of whether or not the exit searches were enforced through discipline, Apple employees' time waiting for and completing exit bag searches under the Apple policy is compensable since the time is considered "hours worked" under state law. The Ninth Circuit court reversed the district court's grant of Apple's motion for summary judgment and ordered the district court to grant the employees' summary judgment motion. 

If you need to discuss employment law violations or have questions about how to file a California class action, don't hesitate to contact Blumenthal Nordrehaug Bhowmik DeBlouw LLP. Experienced employment law attorneys are ready to assist you in any one of various law firm offices located in San Diego, San Francisco, Sacramento, Los Angeles, Riverside, and Chicago.

Café Rio Allegedly Violates PAGA: Failed to Provide Meal and Rest Periods

San Bernardino's Blumenthal Nordrehaug Bhowmik DeBlouw LLP filed a class-action lawsuit against a popular restaurant, Café Rio, Inc. The class action alleges that Café Rio violated PAGA (Private Attorney General Act) and failed to accurately calculate and pay California employees' overtime as required by law. The Café Rio class action lawsuit (Case No. CIVDS2011822) is pending in San Bernardino County Superior Court claiming the company did not provide employees with mandatory meal and rest periods.  

Café Rio Class Action: Case No. CIVDS2011822

According to the plaintiff in Case No. CIVDS2011822, off the clock meal breaks and rest periods were consistently interrupted by work assignments. As a result of being forced to complete work off the clock, the plaintiff and other Café Rio employees were shorted pay. The inaccurate recording of hours worked resulted in employees regularly working without compensation at the legally required minimum wage and overtime wage rates. According to California state law, employees must be paid overtime and meal period premium wages at 1.5x the employee's regular pay rate.

Café Rio Allegedly Violated Numerous Employment Law Regulations:  

1. Requiring Employees to Work During Unpaid Breaks: This is often referred to as 'off the clock' work because employees work while they are clocked out or not being paid to work. These seemingly inconsequential moments of working during break periods can add up to hours of unpaid work. 

2. Inaccurate Wage Statements: Requiring employees to work during unpaid breaks means their time spent working is not recorded accurately as required by law. 

3. Violating Minimum Wage Requirements: By not paying employees for some of the time the work, many companies end up providing their employees with hourly wages that fall below the minimum wage requirements, which violates labor law. 

4. Violating Overtime Pay Requirements: By basing overtime pay calculations on inaccurate records of hours worked, many employees may be shorted overtime pay. 

If you have questions about how to identify California labor law violations or if you need to file an overtime lawsuit, please get in touch with Blumenthal Nordrehaug Bhowmik DeBlouw LLP. Experienced employment law attorneys are ready to assist you in any one of various law firm offices located in San Diego, San Francisco, Sacramento, Los Angeles, Riverside, and Chicago.

FTG Aerospace Inc. Facing Class Action After Alleged Meal & Rest Period Violations

According to allegations in a recent class-action lawsuit, FTG Aerospace Inc. failed to provide required meal and rest breaks for California employees. Blumenthal Nordrehaug Bhowmik DeBlouw LLP filed the class action lawsuit (Case No. 20STCV28767) in the Los Angeles Superior Court of California. 

Did FTG Aerospace Inc. Violate California Labor Law? 

The recent California class action alleges FTG Aerospace Inc. engaged in numerous California Labor Law violations: 

1. Failure to provide required meal breaks

2. Failure to provide mandatory rest periods

3. Failure to provide employee wages when due

4. Failure to pay employees minimum wage

5. Failure to provide employees with overtime pay

6. Failure to accurately record meal breaks and rest periods

7. Failure to provide employees with accurate itemized wage statements

All of the above alleged actions are violations of California Labor Law and Wage Orders. The alleged violations could result in civil penalties. 

What Is an Act of Unfair Competition?  

Acts of unfair competition are typically actions, processes, or standards characterized by deceit, bad faith, fraud, or oppression that leave the victim prevented or otherwise inhibited from engaging in trade or business successfully. The FTG Aerospace Inc. class action includes allegations that the company’s company-wide policy generating a standard for overtime recording and calculation resulted in inaccurate overtime pay calculations and a failure to pay employees for all overtime hours worked accurately. The company’s intentional disregard of their legal obligation to accurately record overtime hours and calculate overtime pay rates left many employees underpaid. This is the type of company-wide policy or standard of operations considered an act of unfair competition.  

California Overtime Pay Requirements: 

California law requires employers to pay nonexempt employees daily overtime according to a specific overtime pay calculation: one and one-half times the employee’s regular pay rate. Overtime pay rates should be provided for any hours worked by non-exempt employees over 8 in one day, up to and including 12 hours in one workday. Overtime pay should also be provided for the first 8 hours worked on the seventh consecutive day worked in one workweek. 

If you need help with unpaid overtime pay, unpaid commissions, wrongful termination, or other California Labor Code violations, get in touch with Blumenthal Nordrehaug Bhowmik DeBlouw LLP today. Experienced employment law attorneys are ready to assist you in any one of various law firm offices located in San Diego, San Francisco, Sacramento, Los Angeles, Riverside, and Chicago.

Cigna Faces Class Action Lawsuit Alleging Wage and Hour Violations

A California wage and hour class-action lawsuit alleges Cigna Health and Life Insurance Company failed to pay employees accurately. 

Did Cigna Fail to Provide Workers Minimum Wage and Overtime?

According to the wage and hour class action, Cigna violated numerous California Labor code provisions when they allegedly failed to provide accurate pay and overtime pay. California state law protects workers against employers who try to increase profits by underpaying their workers, requiring unpaid work (i.e., mandatory unpaid training, off-the-clock work, etc.), or failing to calculate overtime pay accurately. Blumenthal Nordrehaug Bhowmik De Blouw LLP filed the class action complaint (Case No. 283609) that is now pending in the Tulare Superior Court of the State of California. 

Cigna Allegedly Failed to Pay Minimum Wage & Overtime Wages

The class action complaint outlines multiple violations of California Labor Law: 

1. Failure to pay minimum wage

2. Failure to accurately record and provide employees with mandatory meal breaks and rest periods

3. Failure to provide employees with accurate itemized wage statements

4. Failure to reimburse workers for required business expenses

5. Failure to provide wages to workers when due

Additional Allegations: Did Cigna Commit Acts of Unfair Competition? 

The Cigna class action also alleges that the health and life insurance company committed acts of unfair competition that violated California’s Unfair Competition Law. For example, according to the class action, the company allegedly held a company-wide policy and standard procedure that failed to accurately calculate and record the correct overtime pay rate for workers. As a direct result of inaccurate overtime pay calculation standards and processes in place at Cigna, the company also allegedly failed to provide accurate overtime pay to workers. 

What Happens When California Employers Violate Labor Law? 

Most California businesses are subject to several regulatory and legal requirements (Federal, state, and local levels). The labor law requirements are designed to protect America’s workers. The state of California takes employment laws seriously, even when complying with the law may be difficult for California employers, so violating labor law can result in severe consequences for California employers.                              

If you need help collecting unpaid overtime, or if you need to file a California overtime pay lawsuit, get in touch with Blumenthal Nordrehaug Bhowmik DeBlouw LLP. Experienced employment law attorneys are ready to assist you in any one of various law firm offices located in San Diego, San Francisco, Sacramento, Los Angeles, Riverside, and Chicago.

$3.6 Million Settlement to Resolve Sherwin-Williams Wage and Hour Claims

Managers and associates of Sherwin-Williams banded together to file claims against their employer alleging failure to pay overtime, provide required meal breaks and rest periods, and other California labor law violations in Anderson v. The Sherwin-Williams Company No. 5:17-cv-02459 (C.D. Calif. May 12, 2020). As a result, Sherwin-Williams Company will pay $3.65 million to settle the claims.  

A Brief Outline of the Case: Anderson v. The Sherwin-Williams Company

Workers in the case allege that he paint store not only did not pay proper overtime, and provide mandatory meal breaks and rest periods, but that they also failed to completely reimburse work expenses. Approximately 5,700 Sherwin-Williams workers are included in the settlement class according to court documents.   

A History of the Case: Anderson v. The Sherwin-Williams Company

Plaintiffs in the case filed suit under California law, but in this type of case, the federal Fair Labor Standards Act (FLSA) is often violated. The case includes the type of common allegations that frequently result in large settlements – like the one Sherwins-Willimans proposed to resolve the claims. 

Common FLSA Violations: Meal Breaks

Meal Breaks: Failure to keep track of, provide, or authorize meal breaks as required by law is responsible for many wage and hour related claims, even more so when they involve automatic deductions. For instance, some employers automatically deduct the 30 minutes from their worker's pay as if they always take their rest period, but do not actively ensure that the workers actually take the time off (or even actively make it possible for them to take the mandatory meal break or rest period). According to labor law, workers are supposed to be provided with meal breaks and rest periods during which they are not working.  

Off the Clock Work: Automatic deductions for breaks/rest periods are not prohibited, but employers are required to provide employees with payment for all hours worked, so if deductions are made, but employees are not taking the time off work, they are not being paid for their time. Additionally, employers are required to keep accurate records of all hours worked, so if breaks are recorded, but not taken, records being kept are inaccurate. Off the clock work is a common FLSA violation that leads to many off the clock wage and hour lawsuits. 

Overtime Pay: Another common FLSA violation is failure to provide accurate overtime pay for workers who are working more than full time. FLSA obligates employers to pay their nonexempt workers time and one-half for all hours worked beyond 40 in one workweek. 

If you need to talk about employment law violations, or if you need to file a California wage and hour lawsuit, we can help. Get in contact with Blumenthal Nordrehaug Bhowmik DeBlouw LLP. Experienced employment law attorneys are ready to assist you in any one of various law firm offices located in San Diego, San Francisco, Sacramento, Los Angeles, Riverside, and Chicago.

Mistra Allegedly Fails to Provide California Workers with Required Meal and Rest Breaks

Mistras Group, Inc. is facing an employment law lawsuit alleging California Labor Code violations. The class action complaint was filed in July 2020 in Los Angeles, (California Case No. 20STCV22485). 

The California Class Action Complaint Alleges Numerous Employment Law Violations: 

The July 2020 complaint filed in Los Angeles, California alleges numerous employment law violations. Mistras Group, Inc. allegedly violated various California Labor Code provisions when they failed to provide their workers with mandatory meal breaks and rest periods, and when they failed to reimburse workers for required business expenses. 

California Class Action Complaint Alleges Failure to Provide Meal and Rest Breaks:

According to the lawsuit, Mistras Group, Inc. failed to provide their California workers with mandatory meal and rest breaks. According to California wage and hour law, employers are required to provide their nonexempt employees with a thirty minute lunch or meal break when the worker's shift is longer than five hours in one day. California employers are also required to provide employees with mandatory rest periods or breaks equaling ten minutes for every four hours worked in a day. 

California Employment Law Class Action Currently Pending: 

The California employment law class action is currently pending in the Los Angeles Superior Court of the State of California. Plaintiffs allege that the employer failed to provide their workers with accurate itemized wage statements, failed to keep an accurate record and provide mandatory meal breaks and rest periods, failed to pay overtime, failed to pay minimum wage, failed to reimburse employees for necessary business expenses, and failed to provide wages to employees when they were due. All of the alleged practices are serious violations of California labor law. 

Additional Allegations Cite Unfair Competition in Violation of California Law:

The same complaint claims that Mistras Group, Inc. engaged in acts of unfair competition that violated California's Unfair Competition Law (Cal. Bus. & Prof. Code §§ 17200, et seq. (the "UCL"). The plaintiffs allege that their employer used company wide policies and procedures that failed to accurately record overtime hours worked, and failed to accurately calculate overtime pay rates for the plaintiffs and other California class members in similar circumstances. Additionally, the plaintiffs claim that the Defendant, Mistras Group, Inc., willfully disregarded their legal obligation to meet this burden, and that as a result of the California employer's intentional disregard of California employment law, workers were not paid provided the required compensation for all the hours they worked. 

If you need to discuss overtime violations or if you need to file a California overtime lawsuit, please get in touch with Blumenthal Nordrehaug Bhowmik DeBlouw LLP. Experienced employment law attorneys are ready to assist you in any one of various law firm offices located in San Diego, San Francisco, Sacramento, Los Angeles, Riverside, and Chicago.