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Archive for September 16th, 2010|Daily archive page

Southern District Holds That Compensation Received But Later Forfeited Under Cliff Vesting Schedule in Mandatory Investment Plan, Are Not Unpaid Wages

In Securities, Wages on September 16, 2010 at 6:40 pm
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In Callan v. Merrill Lynch & Co., Inc., No. 09 CV 0566 BEN (BGS), 2010 WL 3452371 (S.D. Cal. Aug. 30, 2010) (slip op.), the Southern District held that compensation plans that contained cliff vesting schedules in which awards are forfeited if employment terminates before the awards are vested did not constitute unpaid wages under the Labor Code.

Facts

Former employees of the Defendants Merrill Lynch & Co., Inc. and Merrill, Lynch, Pierce, Fenner & Smith, Inc. participated in three of Merrill Lynch’s employee compensation packages.  Id. *1. Plaintiffs alleged they were required to accept part of their wages in the form of “awards” under the plans. Id. Plaintiffs alleged the plans contain forfeiture provisions that constitute unlawful conversion and violate California’s Labor Code and Unfair Competition Law. Id. Read the rest of this entry »

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Northern District Awards $618,812.82 in Compensatory Damages and Punitive Damages in Case Involving Labor Code and Human Trafficking Allegations

In Attorney's Fees, Damages, Default judgment, Punitive damages, Verdicts on September 16, 2010 at 4:27 pm

The Northern District granted a default judgment in a human trafficking and Labor Code case.  Canal v. Dann, No. 09-03366 CW, 2010 WL 3491136 (N.D. Cal. Sept. 2, 2010) (slip op.).

Plaintiff Zoraida Peña Cenal alleged that from July, 2006 to April, 2008, Peña Canal worked for Defendant Dann for fifteen hours a day, seven days a week, caring for Defendant’s three young children and cooking and cleaning for the household. Id. For all of this work, plaintiff alleged that Defendant paid Peña Canal only once: on Christmas day in 2006, Defendant gave Peña Canal $100. Id. *1

After Peña Canal escaped from Defendant, the U.S. Attorney charged Dann with five counts: forced labor, unlawful use of documents in furtherance of servitude, harboring an illegal alien for private financial gain, visa fraud and conspiracy to commit visa fraud.  Id. *2.  A jury convicted Dann on all counts, and the criminal court sentenced her to sixty months in prison and three years of supervised release, and ordered her to pay $123,740.34 in restitution. Id. The restitution amount was based upon the government’s calculation, which was derived from data submitted from the federal government’s Foreign Labor Certification Program, as evidence of the value of Peña Canal’s labor during the period at issue. Id. Read the rest of this entry »