California Nonprofit Wage Theft Lawsuit: Preliminary $170K Settlement

In June 2021, Downtown Streets Team, a California nonprofit came to a $170,000 preliminary settlement agreement to resolve a wage theft lawsuit.

The Case: Jaclyn Epter v. Downtown Streets, Inc.

The Court: Superior Court for the State of California for the County of San Francisco

The Case No.: CGC-19-579955

The Plaintiff: Epter v. Downtown Streets

The plaintiff in the case, Jaclyn Epter, is a former employment specialist at Downtown Streets. Epter filed a class-action lawsuit in December 2019 on behalf of herself and other case managers and employment specialists for nonpayment of wages. The lawsuit alleged wage theft or wage abuse based on overtime violations, failure to provide mandated break and lunch time compensation, late payment of wages after termination or resignation, etc. for the time period between Oct. 11, 2015 and March 31, 2020. The plaintiff alleges that the nonprofit illegally misclassified its employment specialists and case managers, who support the nonprofits various programs, as salary workers exempt from the protections of the California Labor Code.

The Defendant: Epter v. Downtown Streets

The defendant in the case, Downtown Streets, is a nonprofit corporation that employs the homeless and low wage earners and runs the Downtown Streets Team. The “team” provides street cleaning service throughout Palo Alto and surrounding Bay Area cities. The purpose of the nonprofit’s street cleaning team is to help uplift the homeless in the area (as well as low wage workers) and assist them in finding employment and housing.

The Allegations: Epter v. Downtown Streets

Some of the allegations plaintiffs cited in the lawsuit included:

• Failure to pay wages for all hours worked

• Failure to pay overtime wages

• Failure to provide meal periods or premium wages in lieu thereof

• Failure to provide rest breaks or premium wages in lieu thereof

• Failure to provide accurate itemized wage statements

• Failure to timely pay final wages at termination

• Violations of California’s Unfair Competition Law

More About the Case: Epter v. Downtown Streets

The plaintiff in the case claims that she was instructed to record her hours as no more than 8 in a workday or 40 in a work week regardless of how many she worked. She also alleges that employees were discouraged from taking meal or rest breaks, and that the company did not provide them with accurate, itemized wage statements. According to court documents, the wage theft lawsuit’s preliminary settlement was approved on June 25th, and a final settlement will potentially be determined by the court on Sept. 23rd. The $170,000 settlement is intended to resolve the wage theft lawsuit, and pay 72 employees affected by the pay disparities to provide for uncompensated overtime, (as well as providing compensation for missed meal and rest breaks mandated by employment law). The allegations claimed millions of dollars in losses, so the defendant sees the $170,000 settlement as a good outcome. Downtown Streets denied the allegations, but will examine its records for any employees not property compensated.

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

California Minor League Baseball Players Sue for Unpaid Wages

In recent news, Minor League Baseball players sue for unpaid California wages. Some question whether the farm system is a form of indentured servitude.

The Case: Senne v. Office of the Commissioner of Baseball

The Court: United States District Court, Northern District of California, San Francisco Division

The Case No.: 3:14-cv-00608-JCS

The Plaintiff: Senne v. Office of the Commissioner of Baseball

The plaintiffs in the case are minor leaguers alleging that they are paid significantly less than minimum wage according to employment law. Unlike major league baseball players, minor league players have no union. However, minor leaguers comprise the overwhelming majority of baseball players employed by the MLB. Attempts to organize minor league players are generally not successful because minor leaguers fear retaliation - they hope to end up with a major league career, and don’t want to hurt their chances.

The Defendant: Senne v. Office of the Commissioner of Baseball

Since the 1920s, all MLB teams actively depend on extensive “farm systems” to develop their baseball players. MLB teams actually employ only a small number of players (baseball players that actually play in MLB stadiums). However, each major franchise simultaneously stockpiles anywhere from 150 to 250 minor league baseball players. Altogether, the MLB franchises collectively employ approximately 6,000 minor leaguers in their farm systems. The original 2014 Complaint filed in the Senne case focuses on the allegedly problematic farm system. The complaint notes that Major League Baseball’s (MLB) exemption from federal antitrust laws allows it to collude on the working conditions for the development of baseball players; enabling them to hoard players while depressing salaries. Most minor league players earn from $3,000 to $7,500 per year while routinely working more than 50 hours per week (frequently up to 70 hours per week during championship season). Minor league players regularly receive pay that falls below minimum wage and they are not provided with overtime wages. Minor league players are provided no payment during spring training, instructional leagues, or winter training while they typically work more than 50 hours per week during these time periods.

The Case: Senne v. Office of the Commissioner of Baseball

The lawsuit seeks to recoup the damages minor leaguers sustain as a result of illegal wage and labor practices in the farm system.As five of the defendants are located in California, an entire minor league operates out of the state, and hundreds of minor leaguers work in California throughout the winter months, the suit includes class action damages under the state laws of California. In July, the U.S. Magistrate narrowed the subclass of plaintiffs eligible to seek injunctive relief in Senne v. Office of the Commissioner of Baseball. The decision of the U.S. Magistrate is just another adjustment defining who may participate and how they can participate in the lawsuit.

If you need to discuss violations of California state employment law or if you need to file a California class action 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.

Former Virgin Air Flight Attendants File Wage and Hour and Overtime Claims

In the case of Bernstein v. Virgin American, Inc., the judge will need to consider the origin of the defendant’s policy regarding meal period and rest break provisions outside of California.

The Case: Julia Bernstein, et al., Plaintiffs, v. Virgin America, Inc., Defendant

Court: United States District Court, N.D. California.

Case No.: 15–v–02277–JST

The Plaintiff: Bernstein v. Virgin American, Inc.

Plaintiffs in the case are current and former Virgin America flight attendants. The plaintiffs in the class action allege that Virgin failed to pay them for hours worked before their flights, after their flights, and between their flights, as well as time spent in mandatory training, time they were “on reserve,” time they were required to spend taking mandatory drug tests, and time spent filling out required incident reports. The plaintiffs also allege that the company did not allow them to take meal periods or rest breaks as required by law, did not pay appropriate overtime pay and minimum wage, and did not provide class members with accurate wage statements.

The Defendant: Bernstein v. Virgin American, Inc.

Virgin American is an airline company. Headquartered in Burlingame, California, Virgin trains their flight attendants in California. In fact, the company has received millions of dollars from the to do just that. All flight attendant training for Virgin takes place in California. Many of the flights arrive or depart from a California airport, as well. The airline estimates that in the last ten years, the average number of daily flights departing California airport has never fallen below 88.6%

Background of the Case: Bernstein v. Virgin American, Inc.

In most recent news, the judge found that the plaintiffs failed to rebut the presumption against extraterritorial application of meal and rest break requirements for breaks and rest periods that occur outside of California. This finding is based on the judge’s decision that the plaintiffs did not show that the Virgin airline company policy originated at the company’s California headquarters.

If you have questions about California labor law violations or overtime pay violations, please get in touch with 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.

Mortgage Company Workers File Suit Regarding Out-Of-Office Pay

Workers for a California mortgage company, Guild Mortgage Co., filed putative class and collective actions against their employer claiming they were shortchanged pay for work they completed outside the office.

Details of the Case: Sergio Mayoral et al. v. Guild Mortgage Co. et al.

Court: U.S. District Court for the Southern District of California.

Case No.: 3:21-cv-00486

Mayoral et al. v. Guild Mortgage Co.: The Plaintiff

Sergio Mayoral and Miguel Mayoral, Loan Officer Assistants, allege that Guild Mortgage Co. denied them pay for over 20 hours of out-of-office work they completed weekly in order to secure new clients for the company. The plaintiffs claim the company’s failure to pay wages earned, and overtime wages constitutes a violation of wage and hour laws. Plaintiffs further claim that Guild Mortgage maintains a policy and standard practice of only paying assistants for work completed in the office, and doesn’t acknowledge or record work completed out of the office. Both plaintiffs worked for Guild Mortgage from April 2019 through January 2020. In order to generate business, the 2 men attended networking events, open houses, etc. and since these activities were outside of the office, the work was not allegedly not compensated.

Mayoral et al. v. Guild Mortgage Co.: The Defendant

According to the complaint, the Guild Mortgage Co. payment practice in place for Loan Officer Assistants means workers did not receive full wages for all the compensable hours worked, and in some cases, did not receive overtime pay they were due.

Mayoral et al. v. Guild Mortgage Co.: An Overview

The plaintiffs seek to represent other non exempt hourly originating loan officer assistants for Guild Mortgage locations throughout the US in an FLSA collective action. It’s estimated the class could be over 1,000 members.

If you need to discuss California labor law violations in the workplace or if you need to file a California wage and hour 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.

Former Dow Subsidiary to Pay $3.8M to Settle Proposed California Wage Class Action

A former Dow subsidiary, a spin off of Dow Chemical Co., agreed to pay $3.8 million to settle a proposed California wage class action. The proposed class action was filed by employees claiming the company denied workers mandatory rest periods, and meal breaks.

Details of the Case: Craig et al v. Corteva, Inc. et al

Court: U.S. District Court for the Northern District of California

Case No.: 3:19-cv-07923

Craig et al v. Corteva: The Plaintiff

In Craig et al v. Corteva, the putative class consists of any current or former hourly worker employed by Dow Chemical Co. or Dow AgroSciences LLC as long as they completed 12-hour shifts at the Pittsburg, California plant sometime between December 2015 and the date of preliminary approval of the settlement agreement. Jason Craig and Michael Ross, named plaintiffs in the case, were employees at a 24/7 pest control and agricultural products manufacturing plant. They filed the suit in December 2019 claiming the company denied them rest periods and meal breaks.

Craig et al v. Corteva: The Defendant

The plant in question in the case was originally owned by Dow Chemical Co. According to the motion, following a 2017 merger, DowAgrosciences also became an owner of the plant. In 2019, DowAgrosciences was spun off from Dow and is now named Corteva Agriscience LLC. The Dow Chemical Co. spin off will pay $3.8 million to settle the proposed class action in connection to the agricultural products plant in Contra Costa County, California. The proposed settlement agreement came after several months of discovery and research of the company’s pay and employee break policies. Corteva denies any wrongdoing and claims they comply with wage and hour law.

Craig et al v. Corteva: An Overview of the Case

In a Friday motion for preliminary approval of a settlement with Corteva Agriscience LLC, the workers asked the judge to approve an agreement to settle claims that they weren't given breaks during their shifts at an agricultural products plant in Contra Costa County, California. If approved, the settlement would cover attorney fees, and distribute $2.77 million amongst the 207 class members. Plaintiffs felt the settlement was reasonable and relevant as it would yield a prompt, certain recovery for class members without requiring additional time and litigation costs.

If you need help with employment law violations in the workplace, get in touch with Blumenthal Nordrehaug Bhowmik DeBlouw LLP today. Experienced employment law attorneys are ready to assist you in various law firm offices located in San Diego, San Francisco, Sacramento, Los Angeles, Riverside, and Chicago.

Court Denied Request for Panel Rehearing of California Wage Suit

In March 2021, the Ninth Circuit denied KM Industrial Inc.’s request to reconsider their decision to return a wage and hour suit to state court. The decision followed the discovery that the company used assumptions that inflated the price tag associated with the suit so that it could get the case into federal court.

Details of the Case: Levone Harris v. KM Industrial Inc.

Court: U.S. Court of Appeals for the Ninth Circuit

Case No.: 20-16767

Levone Harris v. KM Industrial Inc.: The Plaintiff

The plaintiff, Levone Harris, filed suit against KM Industrial in 2019. Harris is a former KM Industrial employee that claims KM Industrial violated state labor law. Allegations made in the suit included failing to provide required overtime pay, failing to reimburse business expenses, failing to provide meal and rest breaks, and failing to provide workers with accurate wage statements.

Levone Harris v. KM Industrial Inc.: The Defendant

KM Industrial had the case removed to federal court on the grounds that the amount in controversy exceeds $5 million. (The company estimated the amount in controversy to be close to $7.1 million). A district judge granted a motion by Harris to send the case back to state court after finding the estimate provided by KM Industrial was “grossly exaggerated.” The company appealed, claiming the decision conflicted with precedent, but the request for rehearing was denied. The denial left the panel’s prior majority decision in place to remand the proposed class action to state court.

Levone Harris v. KM Industrial Inc.: An Overview

After the panel majority in November agreed with the district court’s decision that the Defendant improperly assumed when estimating amounts in controversy and failed to show their calculations were reasonable. Without proof that the members of the hourly employee class and the two subclasses were the same (and worked that long enough work shifts to quality for meal breaks and rest periods), the assumptions presented by KMI were found unreasonable.

If you have questions regarding employment law and how it protects California employees from wage and hour violations, get in touch with Blumenthal Nordrehaug Bhowmik DeBlouw LLP. Experienced employment law attorneys are ready to assist you in various law firm offices located in San Diego, San Francisco, Sacramento, Los Angeles, Riverside, and Chicago.

Wells Fargo Employees Seek Class Certification in Employment Lawsuit

Wells Fargo workers seek class certification from California federal court for employees claiming they were cheated out of mandatory breaks, pay as required by employment law, and forced non-reimbursed expenses to comply with dress codes at the financial institution.

Details of the Case: Caudley Simon v. Wells Fargo Bank, National Association

Court: United States District Court for the Central District of California

Case No.: 2:20-cv-00211

Simon v. Wells Fargo: The Plaintiff

Wells Fargo employees seek class certification in Caudley Simon v. Wells Fargo Bank, National Association. Plaintiffs claim they were cheated of pay, mandatory breaks and rest periods, and reimbursements for money spent complying with the company’s stringent dress code policy. Plaintiffs filed the motion in California federal court arguing that there are five categories of Wells Fargo employees that should be certified due to the fact that they were allegedly harmed by the same company policies at various Wells Fargo branches throughout California. The named plaintiff, Simon, is a former personal banker for Wells Fargo. He sued Wells Fargo in December 2019 alleging that he (and other workers in similar situations) were regularly deprived of mandatory meal breaks and rest periods, and were not provided paper wage statements in compliance with employment law. Additional allegations were also listed.

Simon v. Wells Fargo: The Defendant

Plaintiffs in the case claim that Wells Fargo’s timekeeping system precluded their workers from logging interrupted or condensed rest periods and meal breaks. Additionally, court documents allege that due to the company’s strict dress code, employees were forced to spend hundreds each year to comply and to pay for dry cleaning bills. Wells Fargo states the claims are meritless, and that they are committed to complying with state and federal employment law.

Simon v. Wells Fargo: An Overview

Wells Fargo employees seeking class certification include a pay stub class of workers who received payment through direct deposit and did not receive paper wage statements. Another class of workers spent “hundreds” of dollars annually to comply with the Wells Fargo dress code, and manage their dress code with expensive dry cleaning bills. It’s estimated that the combined class members could total more than 6,000 Wells Fargo workers.

If you have questions about California labor law violations or how employment law protects you against labor law violations, please get in touch with Blumenthal Nordrehaug Bhowmik DeBlouw LLP. Experienced employment law attorneys are ready to assist you in various law firm offices located in San Diego, San Francisco, Sacramento, Los Angeles, Riverside, and Chicago.