Jo and his wife did their research. They discovered that the limo company owner violated the California labor code by demanding that Jo pay the deductible charges when the limo he was driving was damaged - and it wasn’t even his fault. (Even if it was his fault, charging the driver is questionable.) The Industrial Welfare Commission that regulates wages, hours and working conditions in the transportation industry clearly states that:
No employer shall make any deduction from the wage or require any reimbursement from an employee for any cash shortage, breakage, or loss of equipment, unless it can be shown that the shortage, breakage, or loss is caused by a dishonest or willful act, or by the gross negligence of the employee.
This is how the accident occurred. “My passengers didn’t shut the rear door properly when I dropped them off,” Jo explains. “Pulling away I heard road noise so I hit the brake. The back door swung open and hit a planter in the hotel driveway. It put a crack in the plastic door, so I called the owner and told him what happened. He said it just needed a little touch-up. I worked that weekend, and about a week later I got a text message from the owner, asking what are we going to do about the door damage?”
Jo knew that other drivers had been charged deductible costs. But he knew that the owner was indeed violating the California labor code so Jo was prepared.
“I offered to drive the limo to the repair shop on my own time,” says Jo. “As well, I recently got a ticket for parking in a bus zone and the owner agreed to pay half. I suggested that I would pay all the parking violation, and he pay all the damage: I thought this agreement was more than fair.”
At the end of September, Jo’s boss took him up on the offer but he hasn’t been called in to work since. Instead, the owner’s mother called and asked Jo what he intended to do about the damage. “I told her about the arrangement we made but she kept on raising the question,” says Jo. That is two strikes against Jo’s boss: retaliation is also a violation of the California labor code.
Limo drivers and California overtime
Jo’s second issue is overtime. He worked for about 18 months, on call. All the drivers are on call. In the busy season they typically work 50-60 hours a week and in the low season (January through March) about 15-20 hours.
“Last year I probably drove 100 trips and 75 percent of those were over eight hours,” says Jo. “Most business generates from San Francisco and most people tour the wine country, so we rarely get back within eight hours. Our rate of pay worked like this: he had three different types of vehicles that I drove. When no one was in the vehicle, the pay rate was $9 per hour. When I had passengers in a Lincoln sedan, it was $15 per hour; passengers in the Chevy Suburban was $17 per hour and the limo was $20 per hour.
“He explained that these different rates had to do with the tip included in the rate people were charged. About 50-60 percent would still tip; thankfully, some people are pretty generous, especially coming back from a wine tour.”
Jo and his wife found out that he is eligible for overtime when they researched the limo damage and deductible issue. Jo didn’t confront the owner about overtime because other drivers had brought it up in the past and didn’t get called back.
Legal Newsline (10/23/14) reports that employees of Chase Bank in 12 states were part of the lawsuit. They alleged they were not paid properly for work, including overtime, because not all their hours were counted as worked and because they were not given proper meal or rest breaks. Chase allegedly did not allow employees to record all hours worked, and/or erased or modified recorded hours.
Other allegations included not properly reimbursing employees for all incurred business expenses, not providing proper wage statements and not paying wages timely. The class period varied based on the state, but in California, employees who worked with Chase from February 17, 2007 and on as personal bankers, tellers or ABM trainees were eligible to join the lawsuit.
The lawsuit alleged Chase’s policy was to “deny earned wages, including overtime pay, to its non-exempt hourly employees at its retail branch facilities throughout the country.” The lawsuit also alleged Chase employees were required to perform work-related activities during unpaid breaks.
“The net effect of Chase’s policy and practice, instituted and approved by company managers, is that Chase willfully fails to pay overtime compensation and willfully fails to keep accurate time records, in order to save payroll costs,” the lawsuit claimed.
Under California and labor law, non-exempt employees are to be paid overtime for any work performed above 40 hours per week or beyond 5 days per week, as well as extra pay for missed meal breaks and rest periods as mandated by the California labor code, if an employee is required to work through a rest period or meal break.
However, according to the California labor lawsuit, policy and protocol observed by Allstate effectively discourages managers from paying overtime, allegedly due to incentives afforded Allstate managers to stay within mandated budgets. Such incentives, according to the lawsuit, included paid bonuses to managers who kept within budgetary parameters.
Plaintiffs claimed that such incentives for managers to stay on budget - not to mention the pursuit of a good performance review that might hinge on a manager’s capacity to stay within budgetary guidelines - dissuaded managers from recording overtime hours.
“The complaint alleges that Allstate’s managers are required to stay within an annual budget that includes overtime compensation, and that the performance evaluations and bonuses paid to managers are dependent on how closely they conform to the budget,” said attorney Alexander R. Wheeler, of the R. Rex Parris Law Firm, which represents the plaintiffs. “This would mean that a manager would have a disincentive to approve and report overtime, the class claims.”
That’s a violation of California labor employment law.
Plaintiffs allege that managers would witness workers performing tasks off the clock and outside of their normal work hours, but make no inquiry as to whether or not overtime was to be requested. The California labor lawsuit also suggests that repeated requests for overtime were seen as a performance issue, rather than incidents that suggested claims adjusters were given too much work to complete within the allotted hours.
Rather than suggest a requisition for overtime, an employee might be counseled as to alternative work methods through better training and increased efficiency in order to avoid overtime hours. However, given the incentives allegedly afforded by the defendant to stay within budget suggests Allstate managers did not have the best interests of their underlings at heart, but rather their own and those of the defendant.
“The potential recovery in this case is expected to be in the hundreds of millions for wage theft by Allstate,” said R. Rex Parris, founding partner of the R. Rex Parris Law Firm. “Casualty adjuster Jack Jimenez brought the suit in 2010 on behalf of any claims adjuster working for the insurer in the state of California since Sept. 29, 2006.”
California state labor laws are clear with regard to the requirement to pay overtime for non-exempt workers. While an employer always has the right to offer training in order to improve efficiency in an effort to avoid overtime, an employer does not have the right to deny an employee overtime pay for extra hours worked, when the overtime was unavoidable.
The case is Jack Jimenez v. Allstate Insurance Company - Case No. 2:10-cv- 10-8486-JAK-FFM, in the United States Court of Appeals for the Ninth Circuit.
The lawsuit before the Supreme Court was filed by workers at a Las Vegas Amazon warehouse. According to the New York Times (10/8/14), the workers allege they are required to spend up to 25 minutes after their shifts waiting to undergo security checks designed to prevent employee theft. In the original lawsuit, the plaintiffs alleged during the search that they were required to remove their wallets, keys and belts, and had to walk through metal detectors at the end of their shift. Additionally, they alleged they spent time during their unpaid breaks going through security clearances.
At least one lower court found that the security screenings were required for the job, making them “integral and indispensible” and therefore, payable time. That court, however, was partially reversing the district court’s dismissal of the lawsuit, after the district court found that time spent going through security was not compensable under the Fair Labor Standards Act.
Lawyers for the employers, a temporary staffing agency that supplied the employees to Amazon, argued before the Supreme Court that the security checks were not integral to the job and therefore should not be considered paid time. A spokesperson for Amazon said in a statement via email, "Data shows employees walk through post-shift security screening with little or no wait."
In 2013, the Court of Appeals allowed the lawsuit to continue, reversing the District Court’s dismissal regarding end-of-day security clearances, but upholding the dismissal of claims linked to the shorter lunches.
The Amazon lawsuit is Integrity Staffing Solutions v. Busk, No. 13-433. The employees filed the lawsuit seeking back pay, overtime pay and damages under the Fair Labor Standards Act.
Many employees are required to undergo some form of security check at their break time and at the end of their shift. Lawsuits have been filed against other companies also alleging employees should have been paid for the time spent waiting for the security checks. In California, a lawsuit was filed against Apple in 2013, alleging employees should be paid for time spent in security checks.
The Apple lawsuit is Amanda Frlekin et al v. Apple Inc, 3:13-cv-03451-EDL. The defendants in that case filed a motion to have the judges issue a summary judgment dismissing the lawsuit, but the judges denied the motion. The court did, however, stay the lawsuit until the Supreme Court’s ruling in Busk is issued but noted that discovery should continue because California labor laws may still allow some of the claims to survive the Supreme Court’s ruling, even if the Supreme Court finds against the employees in the Busk lawsuit.
(Edited to add a statement from Amazon.)
Photo credit: www.bizjournals.com
Not all personal attendants are aware yet of this change in law, and some may still be paid a flat per-day rate, rather than an hourly rate. If so, their employer is violating California labor law, which requires personal attendants be paid hourly. California’s Domestic Worker Bill of Rights (California AB 241) mandates that personal attendants must be paid at least $9 per hour for the first 9 hours of work, and time-and-a-half (equaling a minimum of $13.50) for anything above 9 hours in a day.
Many personal attendants are paid on a flat 24-hour rate of around $100 a day. Some are paid as low as $80 and some make $120. But based on 24 hours of work, that equals only $3.33 an hour up to $5.00 an hour, not even close to the regular minimum wage. In fact, based on the Domestic Worker Bill of Rights, the minimum a personal attendant working 24 hours should be paid is $283.50 a day.
Personal attendants also rarely get paid sick days or paid vacation days and have few protections when it comes to job security or severance.
Unfortunately, personal attendants are often isolated from their colleagues and have no idea what their rights are. If they are in the country illegally, they may be afraid of fighting for their rights. But if they are employed as a personal attendant, they must receive a minimum wage and an overtime wage based on the number of hours they work.
The Domestic Worker Bill of Rights came into effect in January 2014 and will expire on January 1, 2017, unless another statute is enacted. As of January 1, 2015, however, federal laws will protect home care workers by requiring that they receive the federal minimum wage of $7.25 an hour and overtime pay when they work more than 40 hours in a week.
Failure of employers to follow California’s Domestic Worker Bill of Rights can result in a lawsuit being filed.
The lawsuit names Harvest Management Sun LLC (Harvest), an entity that operates a chain of assisted-living and independent-living facilities across the country under the Holiday Retirement banner. The class action was filed by a California man on behalf of any and all employees of Harvest who may have been denied overtime under California and labor law, as well as similar statutes observed by other states and, federally, the Fair Labor Standards Act.
The plaintiff - who was not named in the report - worked as an executive chef at one of Holiday’s independent-living homes in Pinole. The complaint alleges that the position of executive chef was classified as a management position by the defendant, but that the plaintiff had very few managerial responsibilities. The plaintiff alleges that he typically worked more than 50 hours in any given week, but was not paid overtime in accordance with good practice under California and employment law.
The lawsuit, which also affects the company’s Simi Hills facility in the Simi Valley and The Bonaventure located in Ventura, seeks damages for affronts to California labor employment law going back four years in the state; together with similar affronts to federal law under the Fair Labor Standards Act going back two to three years.
The plaintiffs are seeking unspecified damages, back pay for uncompensated overtime hours, as well as attorney’s fees and costs.
Many a California labor lawsuit has taken an employer to task for misclassifying an employee as exempt from claiming overtime due to having management responsibilities, while having few if any real management duties to perform. While some employers appear to misclassify in error, there are many others who undertake the misclassification in an attempt to save money by not paying an employee overtime for work performed beyond the standard 40-hour workweek or eight-hour day, as mandated under California labor law. Managers, who are correctly classified as exempt, are normally paid a higher salary that takes into account the expectation for working longer hours.
The class-action California labor lawsuit was filed earlier this month in US District Court for the Northern District of California.
In fact, according to the Los Angeles Times (8/12/14), there are two lawsuits against Space Exploration Technologies Corp., popularly known as SpaceX. The crux of the matter involves alleged affronts to the California labor code as it relates to missed meal breaks and rest periods, and unpaid wages.
The first California labor lawsuit, filed by two former employees, allege that SpaceX improperly laid off hundreds of employees in late July of this year without benefit of fair notice or compensation.
Then, two days later in Los Angeles County Superior Court, a former tool maker with the upstart manufacturer filed a lawsuit claiming that SpaceX violated various tenets under California labor employment law.
Among them: imposing schedules and workloads that ate into designated meal breaks and rest periods as required under California and labor law; rounding time sheets to the nearest 15-minute increment, potentially cheating an employee out of cumulative wages and potential overtime pay; and that employees were not reimbursed for tools purchased on their own, in order to accomplish tasks required by the company, when SpaceX allegedly failed to provide the necessary tools to complete the work.
Plaintiff Joseph A. Smith asserts issues as defined in the lawsuit date back to August 2010. The California labor lawsuit seeks various damages and penalties, including back pay with interest, and also seeks class-action status on behalf of other hourly employees who may have found themselves in a similar situation.
SpaceX is one of two companies that competed for the hotly contested contracts issued by NASA for the successor to the now-retired Shuttle. The space agency is currently relying on Russian Soyuz craft to carry supplies and relief astronauts to and from the space station. The other successful bidder is Boeing Corp. NASA is hoping to have spacecraft in production and flying by 2017.
This, in spite of a legal challenge to the contract issuance by one of the failed bidders. Florida Today (10/10/14) reports that Sierra Nevada Corp. launched its formal protest 10 days after the NASA press conference to announce the successful bidders, noting that its bid and proposal to build the Dream Chaser mini-shuttle was nearly $1 billion less than the contract submitted by Boeing. Sierra Nevada Corp. has filed a formal protest with the US Government Accountability Office and expects a ruling on or before January 5 of next year.
NASA, after briefly halting work on the projects, quickly resumed the existing contracts as submitted and is continuing work in order to meet a tight timetable in 2017, less than three years away.
It is unclear what role the two recent legal challenges to SpaceX under California and labor law will have on the defendant, NASA or the program going forward. The case is Joseph A. Smith v. Space Exploration Technologies Corp, case number BC554258, in the Superior Court of the State of California, County of Los Angeles.
As of September 28, Assembly Bill 1897 makes client employers responsible when subcontracted agencies violate California labor laws by underpaying their workers, according to The Huffington Post (9/29/14). In other words, if a large company uses a temp agency for staff and the temp agency underpays the workers, the company that hired the temp agency can also be held responsible, and may face fines.
Although temp jobs are often thought of in terms of office personnel, frequently temp workers are used to staff warehouses and food processing plants. These employees may be subject to labor violations including not receiving proper meal and rest breaks, not being paid minimum wage and not being paid overtime. They may also face harsh working conditions and safety hazards.
Large companies do so to keep their costs down because temporary workers tend to cost less than permanent employees. Assembly Bill 1897 does not shift full responsibility for labor violations to the hiring company but requires the hiring company to share liability with the contractor.
This means that the larger companies that staff using outsourcing cannot claim ignorance when their employees are paid less than the minimum wage. It also protects temp workers from filing suit against a temp agency that might, when faced with a suit, declare bankruptcy to avoid paying workers.
“This bill would require a client employer to share with a labor contractor all civil legal responsibility and civil liability for all workers supplied by that labor contractor for the payment of wages and the failure to obtain valid workers’ compensation coverage,” according to the Legislative Counsel's Digest.
The bill defines the client employer as “the business entity that obtains or is provided workers to perform labor within the usual course of business from a labor contractor, except as specified.”
Earlier in September, Governor Brown also signed into law a bill that requires California employers to provide three paid sick days a year, making California only the second state in the US to require sick leave for employees. According to The Sacramento Bee (8/30/14), the sick leave bill does not include in-home caregivers.
Business groups claim the proposed bill will serve as a business and jobs killer in California. Critics of the bill say that California labor law is fine just the way it is, thank you.
Under current statutes, a primary contractor cannot be held liable for the behavior of a subcontractor in terms of violations to California and labor law. The proposed bill would impose a certain degree of liability on the businesses hiring those subcontractors.
The proposed bill is a priority for labor unions in the state. Caitlin Vega, a lobbyist for the California Labor Federation, told the Sacramento Bee (9/22/14) that the new legislation will do a better job at holding contractors accountable to California labor employment law.
Business advocates hate it. “Worker protection laws in California are already in place for labor violations and should be enforced,” said John Kabateck, executive director of the California chapter of the National Federation of Independent Business, in comments published in the Sacramento Bee. “The only thing this bill is going to do is hurt our state’s economy and jobs.”
That view is mirrored by blogger Andrea Deveau of TechNet, identified as “the national, bipartisan network of innovation economy CEOs and senior executives.”
Deveau, identified as the Executive Director of TechNet, notes in the Fox&Hounds blog (9/26/14) that AB 1897 will impact a California labor lawsuit in that an employee that alleges a violation to have occurred would only be able to litigate against the third-party business, and not against the employer that actually (and allegedly) committed the violation. Business groups view this as unfair and misguided.
However, a respondent to the Fox&Hounds blog noted a multi-year relationship with small sub-contractors. The respondent noted that there was rarely, if ever, overtime paid for work performed beyond an eight-hour day or a 40-hour week. The respondent also noted that whenever a California labor lawsuit was launched, the small subcontractor would simply file for bankruptcy and shut down in an effort to avoid the litigation, only to soon resurface under a different business name and address.
AB 1897, say advocates, will improve adherence to California state labor laws by requiring businesses and contractors to have a stake in the behavior of their subcontractors, and in so doing provide better oversight - and perhaps make better choices in the subcontractors they hire.
“This bill is really about promoting responsible contracting,” lobbyist Vega said, in comments published in the Sacramento Bee. “This bill is going to help the companies that are following the law and being responsible, and this bill is going to help get companies out of the business that have a model of cheating workers.”
The other proposed bill to land on Governor Brown’s desk would prohibit contracts containing a clause requiring an individual to waive all rights to pursue a California labor lawsuit regarding a civil rights claim. The California Chamber of Commerce doesn’t like that one, either…
There’s good reason to think this way. According to Ai-jen Poo, the director of the National Domestic Workers Alliance, most of the labor laws that protect American workers date back to the 1930s. That’s a long time, said Poo, during a recent interview on National Public Radio (NPR, 9/17/14). Even so, said Poo,
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