Courts may Certify Class Claims Where Damages Differ

In Benton v. Telecom Network Specialists, Inc., the California Court of Appeal for the Second Appellate District affirmed that employee wage and hour and meal break cases may be suitable for class certification even where employees experience diverse damages.

The case supports the proposition that courts considering whether common issues predominate for class certification purposes must focus on plaintiffs’ theory of liability and not on whether class members will have to prove their damages individually. More ›

Certification of meal Break Employment Class Affirmed by Ninth Circuit

In Abdullah v. U.S. Security Associates Inc., the Ninth Circuit held that the district court did not abuse its discretion by certifying a meal break subclass, defined as all past and present employees who (a) worked more than six hours, (b) were not provided a meal break, and (3) were not compensated for the meal break.

Plaintiffs were former employees of USSA, a private security guard company. As a condition of employment, all employees were required to sign an agreement to take their meals on duty, rather then having a meal break. Plaintiffs sought to maintain a class action on behalf of themselves and all others similarly situated, alleging that the employer’s policy of requiring employees to work through their legally mandated meal periods made USSA liable for paying compensation for missed meal periods pursuant to California Labor Code 226.7 and the applicable wage order. The district court certified the subclass pursuant to FRCP rule 23(b)(3), which defendant challenged this ruling. More ›

It just got Easier to Remove Class Actions

In Rodriguez v. AT&T Mobility Services LLC the Ninth Circuit cited recent United States Supreme Court precedent to make it more difficult for class action plaintiffs to pursue their claims in state court. More ›

Ninth Circuit Allows Parties to Arbitrate Dispute Which had been Litigated for Years

In this recent arbitration decision out of the Ninth Circuit, the employee brought an action against her employer, alleging violations of California’s overtime laws and sought to assert claims on behalf of a class. After several years of litigation, the employee moved to certify a class. The District Court granted the motion in part, narrowing the class which the employee represented. In the same order, the court denied the employer's motion to compel arbitration, which was after the U.S. Supreme Court’s decision in AT&T Mobility LLC v. Concepcion, 131 S.Ct. 1740 (2011). The District Court found that the employer had waived its right to arbitration by litigating the action for years without raising the binding arbitration clause contained in the employee's employment agreement. More ›

NY Court: Unpaid Interns Entitled to Protections of Labor Laws

Production interns on the set of a blockbuster movie claimed that they should have been classified as employees, not unpaid interns, and filed suit against the production company. The interns did basic tasks such as answering phones, arranged travel, took lunch orders, and general office work. They claimed that the production company violated federal and New York state minimum wage laws by not paying them for their work. The interns ultimately moved for summary judgment on the issue of whether they were employees covered under the Fair Labor Standards Act and New York Labor Law, and also sought class certification. The company also filed a motion for summary judgment and opposed the request for class certification. More ›

California Court: Arbitration Agreement does not Override Statutory PAGA Rights

Non-exempt hourly auto workers filed a class action lawsuit alleging violations of various wage and hour laws, and sought penalties under California’s Private Attorneys General Act (PAGA). The employees had, however, executed the employer’s Employee Dispute Resolution Plan, which provides that all employment-related disputes must be submitted to mediation and arbitration. Employees waived any right they had to pursue, file, participate in, or be represented in disputes filed on a class basis or as a collective or representative action, and the agreement prohibited mediation or arbitration of disputes on a class basis or as a collective or representative action. More ›

Plaintiff Can’t Avoid CAFA Removal by Stipulating to Damages Cap

A stipulation by a class-action plaintiff that he and the class will seek damages that are less than the threshold for jurisdiction under the Class Action Fairness Act of 2005 (CAFA) does not defeat federal jurisdiction under the Act. More ›

Denial of Class Certification as to Alleged wage and hour Violations Affirmed by Court of Appeal

In Daily v. Sears, the Fourth Appellate District, Division One, affirmed the trial court’s granting of the defendant’s motion to preclude class certification.

Plaintiff Dailey was a former employee of Sears, who asserted wage and hour claims individually and on behalf of a proposed class of similarly situated managers and assistant managers.

Dailey argued that Sears uniformly categorized Managers and Assistant Managers as exempt from overtime and meal/rest break requirements, but nonetheless implemented policies that had the effect of requiring the proposed class members to work at least 50 hours per week, spending the majority of their time on nonexempt activities. Sears argued that determining how the class members actually spend their time requires individualized evidence and cannot be proven on a classwide basis. The trial court granted Sears’ motion. More ›

Seventh Circuit Decertifies Class due to Individualized Damage Calculations

The Seventh Circuit Court of Appeals recently issued an opinion upholding a district court’s de-certification of a collective and class action under the Fair Labor Standards Act and Illinois state wage laws. While the opinion did not deal with typical Rule 23 or Section 16 issues, such as commonality or a common employer policy, it is a positive case for employers trying to get out from under lengthy, expensive class litigation. More ›

You’re Out of Luck, Appellate Court tells Casino Card Dealers

Avidor v. Sutter’s Place, Inc., decided January 23, 2013, California Court of Appeal, Sixth Appellate District, involved a class action brought on behalf of card dealers employed by Sutter’s Place, a casino.

The dispute arose from a practice by which the employer required its dealers to contribute a set amount of the gratuities they received from players to a common account, which was distributed to other casino employees on payday.

Plaintiff alleged that this practice violation California Labor Code section 351, which provide that gratuities are the sole property of the employee or employees to whom they are given, and prohibits an employer from taking the gratuity of an employee or deducting that amount from wages. More ›