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Posts Tagged ‘Minimum Wage’

Second District Holds That Piece Rate Employees Must Be Paid Separate Hourly Minimum Wage

In Averaging, Cal. State Court, Class Actions, Experts, Minimum Wage, Piece Rate, Use of Experts to Show Class Damages on April 2, 2013 at 4:02 pm
mercedes-driver at it’s best

mercedes-driver at it’s best (Photo credit: *MarS)

Today the Second District ordered published Gonzalez v. Downtown LA Motors, LP, et al., Case No. B235292, __ Cal. App. 4th __ (2d Dist. Mar. 6, 2013).  Gonzalez is a wage and hour class action where the question presented was whether California’s minimum wage law requires an employer that compensates its automotive service technicians on a “piece-rate” basis for repair work must also pay those technicians a separate hourly minimum wage for time spent during their work shifts waiting for vehicles to repair or performing other non-repair tasks directed by the employer.  Defendant automobile dealership contended it was not required to pay the technicians a separate hourly minimum wage for such time because it ensured that a technician’s total compensation for a pay period never fell below what the employer refers to as the “minimum wage floor” — the total number of hours the technician was at work during the pay period (including hours spent waiting for repair work or performing non-repair tasks), multiplied by the applicable minimum wage rate.  The employer supplemented pay, if necessary, to cover any shortfall.

The Court of Appeal concluded that class members were entitled to separate hourly compensation for time spent waiting for repair work or performing other non-repair tasks directed by the employer during their work shifts, as well as penalties under Labor Code section 203, subdivision (a).

The Court also affirmed the award of waiting time penalties in the amount of $237,840.

There is substantial evidence in the record to support an implied finding of willfulness. Read the rest of this entry »

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First District Affirms Waiver of Right to Arbitrate in Wage & Hour Case

In Arbitration, Waiver on February 17, 2012 at 6:34 am
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In an unpublished decision, the First District Court of Appeal affirmed the trial court’s denial of a motion to compel arbitration in a wage and hour class action, where defendants conducted voluminous discovery and filed and fully litigating two motions to compel further responses to discovery, a motion for sanctions and a motion for a protective order.    Partridge, et al. v. Hott Wings, Inc., et al., No. A130266, 2012 WL 470458 (Feb. 14, 2012).

Discussion

The Court found that Defendants’ delay in filing their petition to compel arbitration “connotes an intent not to arbitrate”.  Id. Defendants conducted substantial discovery:

Between March 2010 and the October 2010 hearing on defendants’ motion to compel arbitration, defendants engaged in voluminous written discovery to which plaintiffs responded.   In addition, defendants deposed numerous plaintiffs and third party witnesses.   Although plaintiffs had begun deposing witnesses, they had not yet obtained basic documents from defendants through discovery.   The discovery focused on the liability of individual defendants and the franchise defendants that employ plaintiffs.   As a result of defendants’ discovery requests, plaintiffs provided information regarding plaintiffs’ estimated damages, which defendants were responsible for which violations, and the liability of the individual as well as the franchise defendants.   A reasonable inference is that the information gained from defendants’ discovery goes to significant issues in plaintiffs’ case.

Id.

In addition, the Court found that Defendants “substantially invoked the litigation machinery” by: Read the rest of this entry »

California Wage & Hour Law on Holiday This Week

In Blog Status on October 18, 2010 at 4:54 pm
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I am traveling this week, so California Wage & Hour Law will be updated less frequently.  I’ll resume daily updates next week, October 26, 2010.

Cheers!

Charles Jung

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Surprising Side Effect of the Minimum Wage: Finishing High School

In Minimum Wage, Wages on September 26, 2010 at 12:48 am
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The National Bureau of Economic Research report suggests a surprising effect of the minimum wage: finishing high school.  As reported by Kevin Lewis of the Boston Globe:

By curtailing low-wage/low-skill jobs, the minimum wage motivates young people to stay in school and become skilled. This effect then generates what the author calls an “educational cascade” by setting an example for the upcoming class of students. He estimates that the average male born in 1951 gained 0.2 years — and the average male born in 1986 gained 0.7 years — of high school due to the cumulative effect of the minimum wage.

Sutch, R., “The Unexpected Long-Run Impact of the Minimum Wage: An Educational Cascade,” National Bureau of Economic Research (September 2010).

By CHARLES JUNG

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Collective Bargaining Agreement That Mentions “Breaks” Does Not Clearly and Unmistakably Waive Right to Sue

In Collective Bargaining Agreements, Waiver on August 30, 2010 at 8:58 am
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In Martinez v. J. Fletcher Creamer & Son, Inc., 2010 WL 3359372 (C.D. Cal. Aug. 13, 2010), the court held that a collective bargaining agreement that mentions “breaks” did not clearly and unmistakably waive plaintiff’s right to sue.

Plaintiff Antonio Martinez  (“Plaintiff”) worked for Defendant J. Fletcher Creamer & Son, Inc. (“Defendant”) as a construction worker. Id. *1. Plaintiff’s terms of employment were governed by a CBA, which provides for a grievance procedure for “enforcing all the terms and provisions contained in this Agreement .” Id. If an employee has “a grievance or dispute,” he must first raise the issue with Defendant. The CBA outlined the terms of employment relating to holidays, payment of wages, meal periods, and breaks, and in a section entitled “Breaks,” the CBA stated: Read the rest of this entry »

Southern District Rejects Argument That Wage Order 7-2001 Invalid

In IWC Orders on August 27, 2010 at 10:59 am
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In Kilby v. CVS Pharmacy, Inc., Civil No. 09cv2051-L(CAB), 2010 WL 3339464 (S.D. Cal. Aug. 23, 2010) (slip op.) Defendant argued that provisions of Wage Order 7-2001 were invalid because the IWC, before adopting any new rules, regulations or policies, was required by Labor Code section 1173 to consult with the California Occupational Safety and Health Standards Board to determine areas of potential overlap, which it is alleged to have failed to do because it delegated too much to the staff. Id. *2.  The court rejected this argument, agreeing with the California Court of Appeal in California Manufacturers Association v. Industrial Welfare Commission, 109 Cal. App. 3d 95, 122-23 (1980).

Defendant also argued that the action should be dismissed because the pertinent provision of Wage Order 7-2001 is not incorporated into Labor Code Section 1198. Section 1198 provides: Read the rest of this entry »

Rep. Linda Sanchez Introduces Legislation to Extend Minimum Wage and Overtime Protections to Home Care Workers

In Wage & Hour Legislation on August 3, 2010 at 9:54 am
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This week, Rep. Linda Sanchez (D-CA) introduced legislation that would extend the federal minimum wage and overtime protections of the Fair Labor Standards Act (FLSA) to most home care workers.  See the report from The Hill.

By CHARLES H. JUNG

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