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BLUMENTHAL, NORDREHAUG & BHOWMIK Norman B. Blumenthal (State Bar #068687) Kyle R. Nordrehaug (State Bar #205975) Aparajit Bhowmik (State Bar #248066) 2255 Calle Clara La Jolla, CA 92037 Telephone: (858)551-1223 Facsimile: (858) 551-1232 Website: www.bamlawca.com
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Attorneys for Plaintiff
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SUPERIOR COURT OF THE STATE OF CALIFORNIA
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IN AND FOR THE COUNTY OF ORANGE
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DANIEL WEST, an individual, on behalf of himself and on behalf of all persons similarly situated,
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vs.
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4G WIRELESS, INC., a California Corporation; and Does 1 through 50,
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CLASS ACTION COMPLAINT FOR: 1. UNFAIR COMPETITION IN VIOLATION OF CAL. BUS. & PROF. CODE §§ 17200, et seq.;
Plaintiff,
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Case No. ____________________
2. FAILURE TO PAY OVERTIME WAGES IN VIOLATION OF CAL. LAB. CODE §§ 510, et seq.; and,
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3. FAILURE TO PROVIDE ACCURATE ITEMIZED STATEMENTS IN VIOLATION OF CAL. LAB. CODE § 226.
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DEMAND FOR A JURY TRIAL
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Defendants.
24 25 26 27 28 1 CLASS ACTION COMPLAINT
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Plaintiff Daniel West (“PLAINTIFF”), an individual, on behalf of himself and all other
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similarly situated current and former employees, alleges on information and belief, except for
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his own acts and knowledge which are based on personal knowledge, the following:
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THE PARTIES 1.
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Defendant 4G Wireless, Inc. (“4G” or “DEFENDANT”), is a California
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corporation with its principal place of business located in Irvine, California. At all relevant
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times mentioned herein, 4G conducted and continues to conduct substantial business in the state
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of California. 2.
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4G was founded in Southern California in 2006. 4G is a premium retailer for
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Verizon Wireless and operates over 125 stores in California and Nevada. At 4G’s stores, sales
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and service representatives aid customers in purchasing new products and services, including
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mobile broadband devices, and also help customers resolve a wide variety of technical support
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issues.
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3.
Plaintiff Daniel West has been employed by 4G in California since September of
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2010 and has at all times been classified by 4G as a non-exempt employee paid in whole or in
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part on an hourly basis and received additional compensation from 4G in the form of a monthly
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commission payment and/or monthly non-discretionary performance bonus.
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4.
PLAINTIFF brings this Class Action on behalf of himself and a California class,
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defined as all individuals who are or previously were employed by Defendant 4G Wireless, Inc.
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in California as non-exempt employees who received commission and/or bonus compensation
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payments during the same pay period in which they worked overtime hours (the
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“CALIFORNIA CLASS”) during the period beginning four (4) years prior to the filing of this
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Complaint and ending on the date as determined by the Court (the “CALIFORNIA CLASS
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PERIOD”).
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5.
State law provides that employees must be paid overtime at one-and-one-half
26
times their “regular rate of pay.” PLAINTIFF and other CALIFORNIA CLASS Members are
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compensated at an hourly rate plus commission and/or bonus pay that is tied to specific
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elements of an employee’s performance. As part of their job duties, PLAINTIFF and other 2 CLASS ACTION COMPLAINT
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CALIFORNIA CLASS Members are required to solicit 4G’s products and services for 4G.
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PLAINTIFF and other CALIFORNIA CLASS Members are paid a commission sum of money,
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in addition to their hourly rate, that is directly proportional to the sales these employees execute
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for 4G and is part of their overall compensation package. However, when calculating the
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regular rate of pay in order to pay overtime to PLAINTIFF and other CALIFORNIA CLASS
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Members, 4G does not include the commission monies earned by PLAINTIFF and other
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CALIFORNIA CLASS Members. The failure to do so results in a systematic underpayment
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of overtime compensation to PLAINTIFF and the CALIFORNIA CLASS Members.
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6.
A third component of PLAINTIFF’s and other CALIFORNIA CLASS Members’
10
compensation is 4G’s non-discretionary bonus program, that provides all employees paid on an
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hourly basis with bonus compensation when the employees meet various performance goals.
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However, when calculating the regular rate of pay in order to pay overtime to PLAINTIFF and
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other CALIFORNIA CLASS Members, 4G failed and still fails to include the monthly bonus
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compensation as part of the employees’ “regular rate of pay” for purposes of calculating
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overtime pay. Management and supervisors described the bonus program to potential and new
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employees as part of the compensation package. As a matter of law, the commission and bonus
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compensation received by the PLAINTIFF and other CALIFORNIA CLASS Members must
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be included in the “regular rate of pay.” The failure to do so has resulted in a systematic
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underpayment of overtime compensation to PLAINTIFF and other CALIFORNIA CLASS
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Members by 4G.
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7.
As a result of this miscalculation the wage issued to PLAINTIFF and other
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CALIFORNIA CLASS Members violate California law, and in particular, Labor Code Section
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226(a). The policies and practices alleged herein also constitute deceptive, unfair and/or
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unlawful business practices whereby 4G retains wages due PLAINTIFF and other
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CALIFORNIA CLASS Members for all hours worked. The PLAINTIFF seeks an injunction
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enjoining such conduct by 4G in the future, relief for the named PLAINTIFF and other
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CALIFORNIA CLASS Members as set forth herein below, and all other appropriate equitable
28
relief the court deems proper. 3 CLASS ACTION COMPLAINT
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8.
PLAINTIFF brings this Class Action on behalf of himself and a CALIFORNIA
2
CLASS in order to fully compensate the CALIFORNIA CLASS for their losses incurred during
3
the CALIFORNIA CLASS PERIOD caused by 4G’s uniform policy and practice which fails
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to lawfully compensate these employees for all their overtime hours worked. 4G’s uniform
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policy and practice alleged herein is an unlawful, unfair and deceptive business practice
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whereby 4G retained and continues to retain wages due PLAINTIFF and the other members of
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the CALIFORNIA CLASS. PLAINTIFF and the other members of the CALIFORNIA CLASS
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seek an injunction enjoining such conduct by 4G in the future, relief for the named PLAINTIFF
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and the other members of the CALIFORNIA CLASS who have been economically injured by
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4G’s past and current unlawful conduct, and all other appropriate legal and equitable relief. 9.
4G has different shifts with different non-exempt employees paid on an hourly
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basis working during each shift. Although the specific time of each shift differs, the hours spent
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working during the shifts are nearly identical in every way. Thus, PLAINTIFF’s and other
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CALIFORNIA CLASS Members’ typical workweek requires them to perform work in excess
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of eight (8) hours in a workday and forty (40) hours in a workweek.
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10.
The true names and capacities, whether individual, corporate, subsidiary,
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partnership, associate or otherwise of defendants DOES 1 through 50, inclusive, are presently
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unknown to the PLAINTIFF who therefore sues these Defendants by such fictitious names
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pursuant to Cal. Civ. Proc. Code § 474. The PLAINTIFF will seek leave to amend this
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Complaint to allege the true names and capacities of Does 1 through 50, inclusive, when they
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are ascertained. PLAINTIFF is informed and believes, and based upon that information and
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belief alleges, that the Defendants named in this Complaint, including DOES 1 through 50,
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inclusive, are responsible in some manner for one or more of the events and happenings that
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proximately caused the injuries and damages hereinafter alleged.
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11.
The agents, servants and/or employees of the Defendants and each of them
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acting on behalf of the Defendants acted within the course and scope of his, her or its authority
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as the agent, servant and/or employee of the Defendants, and personally participated in the
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conduct alleged herein on behalf of the Defendants with respect to the conduct alleged herein. 4 CLASS ACTION COMPLAINT
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Consequently, the acts of each Defendant are legally attributable to the other Defendants and
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all Defendants are jointly and severally liable to the PLAINTIFF and the other members of the
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CALIFORNIA CLASS, for the loss sustained as a proximate result of the conduct of the
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Defendants’ agents, servants and/or employees.
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THE CONDUCT 12.
During the CALIFORNIA CLASS PERIOD, DEFENDANT failed and continues
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to fail to accurately calculate and pay PLAINTIFF and the other members of the CALIFORNIA
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CLASS for their overtime hours worked. DEFENDANT systematically, unlawfully and
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unilaterally fails to accurately calculate wages for overtime hours worked by the PLAINTIFF
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and other members of the CALIFORNIA CLASS in order to avoid paying these employees the
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correct overtime compensation. As a result, the PLAINTIFF and the other members of the
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CALIFORNIA CLASS forfeit wages due them for regularly working overtime without
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compensation at the correct overtime rates. DEFENDANT’s uniform policy and practice to not
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pay the members of the CALIFORNIA CLASS the correct overtime rate for all overtime hours
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worked in accordance with applicable law is evidenced by DEFENDANT’s business records.
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13.
In violation of the applicable sections of the California Labor Code and the
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requirements of the Industrial Welfare Commission ("IWC") Wage Order, DEFENDANT as
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a matter of company policy, practice and procedure, intentionally, knowingly and systematically
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fails to compensate the PLAINTIFF and the other members of the CALIFORNIA CLASS at
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the correct rate of pay for all overtime hours worked. This uniform policy and practice of
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DEFENDANT is intended to purposefully avoid the payment of the correct overtime
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compensation as required by California law which allows DEFENDANT to illegally profit and
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gain an unfair advantage over competitors who complied with the law. To the extent equitable
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tolling operates to toll claims by the CALIFORNIA CLASS against DEFENDANT, the
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CALIFORNIA CLASS PERIOD should be adjusted accordingly.
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14.
DEFENDANT also fails to provide the PLAINTIFF and the other members of
27
the CALIFORNIA CLASS with complete and accurate wage statements which fail to show,
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among other things, the correct overtime rate for overtime hours worked, including, work 5 CLASS ACTION COMPLAINT
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performed in excess of eight (8) hours in a workday and forty (40) hours in any workweek. Cal.
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Lab. Code § 226 provides that every employer shall furnish each of his or her employees with
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an accurate itemized wage statement in writing showing, among other things, gross wages
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earned and all applicable hourly rates in effect during the pay period and the corresponding
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number of hours worked at each hourly rate. As a result, DEFENDANT provides the
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PLAINTIFF and the other members of the CALIFORNIA CLASS with wage statements which
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violate Cal. Lab. Code § 226.
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15.
By reason of this uniform conduct applicable to PLAINTIFF and all
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CALIFORNIA CLASS Members, DEFENDANT committed acts of unfair competition in
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violation of the California Unfair Competition Law, Cal. Bus. & Prof. Code §§ 17200, et seq.
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(the “UCL”), by engaging in a company-wide policy and procedure which fails to accurately
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calculate and record the overtime rate for the overtime hours worked by the PLAINTIFF and
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other CALIFORNIA CLASS Members. The proper calculation of these employees’ overtime
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hour rates is the DEFENDANT’s burden. As a result of DEFENDANT’s intentional disregard
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of the obligation to meet this burden, DEFENDANT fails to properly calculate and/or pay all
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required overtime compensation for work performed by the members of the CALIFORNIA
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CLASS and violated the California Labor Code and regulations promulgated thereunder as
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herein alleged.
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16.
Specifically as to PLAINTIFF’s pay, DEFENDANT provides compensation to
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him in the form of three components. One component of PLAINTIFF’s compensation is a base
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hourly wage at the rate of $12.00. The second component of the PLAINTIFF’s compensation
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is the commission he receives on a monthly basis. The PLAINTIFF is paid a commission sum
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of money that is directly proportional to the sales he executes for DEFENDANT. The third
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component of the PLAINTIFF’s compensation is a non-discretionary monthly performance
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bonus. DEFENDANT pays the bonus as a flat sum each month, so long as the PLAINTIFF
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meets certain predefined performance requirements.
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predefined eligibility performance requirements and/or executed sales on which he earned
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commission compensation in various months throughout his employment with DEFENDANT
PLAINTIFF met DEFENDANT’s
6 CLASS ACTION COMPLAINT
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and DEFENDANT paid PLAINTIFF the performance bonus and/or commission monies.
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During these months in which PLAINTIFF was paid the non-discretionary performance bonus
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and/or received commission compensation from DEFENDANT, PLAINTIFF also worked
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overtime hours for DEFENDANT, but DEFENDANT never included the bonus compensation
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and/or the commission monies in PLAINTIFF’s regular rate of pay for the purposes of
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calculating what should have been PLAINTIFF’s accurate overtime rate and thereby underpaid
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the PLAINTIFF for overtime hours worked throughout his employment with DEFENDANT.
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The bonus and/or commission monies paid by DEFENDANT constituted wages within the
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meaning of the California Labor Code and thereby should have been part of PLAINTIFF’s
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“regular rate of pay.” DEFENDANT also provides PLAINTIFF with a paystub that fails to
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accurately display PLAINTIFF’s correct rates of overtime pay for certain pay periods in
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violation of Cal. Lab. Code § 226(a).
13 JURISDICTION AND VENUE 14 17.
This Court has jurisdiction over this Action pursuant to California Code of
15 Civil Procedure, Section 410.10 and California Business & Professions Code, Section 17203. 16 This action is brought as a Class Action on behalf of PLAINTIFF and similarly situated 17 employees of DEFENDANT pursuant to Cal. Code of Civ. Proc. § 382. 18 18.
Venue is proper in this Court pursuant to California Code of Civil Procedure,
19 Sections 395 and 395.5, because the DEFENDANT’s principal place of business is located in 20 Irvine, California, which is in this County, and DEFENDANT (i) currently maintains and at all 21 relevant times maintained offices and facilities in this County and/or conducts substantial 22 business in this County, and (ii) committed the wrongful conduct herein alleged in this County 23 against members of the CALIFORNIA CLASS and CALIFORNIA LABOR SUB-CLASS. 24 THE CALIFORNIA CLASS
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19.
PLAINTIFF brings the First Cause of Action for Unfair, Unlawful and
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Deceptive Business Practices pursuant to Cal. Bus. & Prof. Code §§ 17200, et seq. (the "UCL")
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as a Class Action, pursuant to Cal. Code of Civ. Proc. § 382, on behalf of a California class, 7 CLASS ACTION COMPLAINT
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defined as all individuals who are or previously were employed by Defendant 4G Wireless, Inc.
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in California as non-exempt employees who received commission and/or bonus compensation
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payments during the same pay period in which they worked overtime hours (the
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“CALIFORNIA CLASS”) during the period beginning four (4) years prior to the filing of this
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Complaint and ending on the date as determined by the Court (the “CALIFORNIA CLASS
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PERIOD”).
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20.
To the extent equitable tolling operates to toll claims by the CALIFORNIA
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CLASS against DEFENDANT, the CALIFORNIA CLASS PERIOD should be adjusted
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accordingly.
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21.
The California Legislature has commanded that “all wages... ...earned by any
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person in any employment are due and payable twice during each calendar month, on days
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designated in advance by the employer as the regular paydays”, and further that “[a]ny work
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in excess of eight hours in one workday and any work in excess of 40 hours in any one
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workweek . . . shall be compensated at the rate of no less than one and one-half times the
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regular rate of pay for an employee.” (Lab. Code § 204 and § 510(a).) The Industrial Welfare
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Commission (IWC), however, is statutorily authorized to “establish exemptions from the
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requirement that an overtime rate of compensation be paid... ...for executive, administrative, and
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professional employees, provided [inter alia] that the employee is primarily engaged in duties
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that meet the test of the exemption, [and] customarily and regularly exercises discretion and
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independent judgment in performing those duties...” (Lab. Code § 510(a).) Neither the
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PLAINTIFF nor the other members of the CALIFORNIA CLASS and/or the CALIFORNIA
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LABOR SUB-CLASS qualify for exemption from the above requirements.
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22.
DEFENDANT, as a matter of company policy, practice and procedure, and
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in violation of the applicable Labor Code, Industrial Welfare Commission (“IWC”) Wage Order
25
requirements, and the applicable provisions of California law, intentionally, knowingly, and
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wilfully, engages in a practice whereby DEFENDANT systematically fails to correctly calculate
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and record overtime compensation for overtime hours worked by PLAINTIFF and the other
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members of the CALIFORNIA CLASS, even though DEFENDANT enjoys the benefit of this 8 CLASS ACTION COMPLAINT
1
work, requires employees to perform this work and permits or suffered to permit this overtime
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work.
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23.
DEFENDANT has the legal burden to establish that each and every
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CALIFORNIA CLASS Member is paid the applicable rate for all overtime hours worked and
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to accurately calculate the “regular rate of pay” by including the commission and/or bonus
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compensation that PLAINTIFF and members of the CALIFORNIA CLASS are awarded on a
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monthly basis. The DEFENDANT, however, as a matter of uniform and systematic policy and
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procedure failed to have in place during the CALIFORNIA CLASS PERIOD and still fails to
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have in place a policy or practice to ensure that each and every CALIFORNIA CLASS Member
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is paid the applicable overtime rate for all overtime hours worked, so as to satisfy their burden.
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This common business practice applicable to each and every CALIFORNIA CLASS Member
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can be adjudicated on a class-wide basis as unlawful, unfair, and/or deceptive under Cal.
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Business & Professions Code §§ 17200, et seq. (the “UCL”) as causation, damages, and reliance
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are not elements of this claim.
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24.
At no time during the CALIFORNIA CLASS PERIOD was the compensation for
16
any member of the CALIFORNIA CLASS properly recalculated so as to compensate the
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employee for all overtime hours worked at the applicable rate, as required by California Labor
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Code §§ 204 and 510, et seq. At no time during the CALIFORNIA CLASS PERIOD was the
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overtime compensation for any member of the CALIFORNIA CLASS properly recalculated
20
so as to include all earnings in the overtime compensation calculation as required by California
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Labor Code §§ 510, et seq.
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25.
The CALIFORNIA CLASS, is so numerous that joinder of all CALIFORNIA
CLASS Members is impracticable.
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26.
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California law by:
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DEFENDANT uniformly violated the rights of the CALIFORNIA CLASS under
(a)
Violating the California Unfair Competition Laws, Cal. Bus. & Prof. Code
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§§ 17200, et seq., by unlawfully, unfairly and/or deceptively having in
28
place company policies, practices and procedures that fail to pay all wages 9 CLASS ACTION COMPLAINT
1
due the CALIFORNIA CLASS for all overtime hours worked, and fail to
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accurately record the applicable rates of all overtime hours worked by the
3
CALIFORNIA CLASS;
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(b)
Committing an act of unfair competition in violation of the California
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Unfair Competition Laws, Cal. Bus. & Prof. Code §§ 17200, et seq., by
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unlawfully, unfairly, and/or deceptively having in place a company policy,
7
practice and procedure that fails to correctly calculate overtime
8
compensation due to PLAINTIFF and the members of the CALIFORNIA
9
CLASS;
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(c)
Committing an act of unfair competition in violation of the California
11
Unfair Competition Laws, Cal. Bus. & Prof. Code §§ 17200, et seq., by
12
unlawfully, unfairly, and/or deceptively failing to pay the correct overtime
13
pay owed to PLAINTIFF and the members of the CALIFORNIA CLASS
14
for overtime hours worked; and,
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(d)
Committing an act of unfair competition in violation of the California
16
Unfair Competition Laws, Cal. Bus. & Prof. Code §§ 17200, et seq., by
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violating Cal. Lab. Code § 226(a), by failing to provide the PLAINTIFF
18
and the other members of the CALIFORNIA CLASS with an accurate
19
itemized statement in writing showing the gross wages earned, the net
20
wages earned, all applicable hourly rates in effect during the pay period
21
and the corresponding number of hours worked at each hourly rate by the
22
employee.
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27.
This Class Action meets the statutory prerequisites for the maintenance of a
Class Action as set forth in Cal. Code of Civ. Proc. § 382, in that: (a)
The persons who comprise the CALIFORNIA CLASS are so numerous
26
that the joinder of all such persons is impracticable and the disposition of
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their claims as a class will benefit the parties and the Court;
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(b)
Nearly all factual, legal, statutory, declaratory and injunctive relief issues 10 CLASS ACTION COMPLAINT
1
that are raised in this Complaint are common to the CALIFORNIA
2
CLASS will apply uniformly to every member of the CALIFORNIA
3
CLASS;
4
(c)
The claims of the representative PLAINTIFF are typical of the claims of
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each member of the CALIFORNIA CLASS. PLAINTIFF, like all the
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other members of the CALIFORNIA CLASS, is a non-exempt employee
7
paid on an hourly basis and paid an additional commission and/or non-
8
discretionary performance bonus wage who has been subjected to the
9
DEFENDANT’s practice and policy which fails to pay the correct rate of
10
overtime wages due to the CALIFORNIA CLASS for all overtime hours
11
worked by the CALIFORNIA CLASS and thereby systematically
12
underpaid overtime compensation to the CALIFORNIA CLASS.
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PLAINTIFF sustained economic injury as a result of DEFENDANT’s
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employment practices.
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CALIFORNIA CLASS were and are similarly or identically harmed by
16
the same unlawful, deceptive, unfair and pervasive pattern of misconduct
17
engaged in by DEFENDANT; and,
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(d)
PLAINTIFF and the members of the
The representative PLAINTIFF will fairly and adequately represent and
19
protect the interest of the CALIFORNIA CLASS, and has retained
20
counsel who are competent and experienced in Class Action litigation.
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There are no material conflicts between the claims of the representative
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PLAINTIFF and the members of the CALIFORNIA CLASS that would
23
make class certification inappropriate. Counsel for the CALIFORNIA
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CLASS will vigorously assert the claims of all CALIFORNIA CLASS
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Members.
26 27 28
28.
In addition to meeting the statutory prerequisites to a Class Action, this action
is properly maintained as a Class Action pursuant to Cal. Code of Civ. Proc. § 382, in that: (a)
Without class certification and determination of declaratory, injunctive, 11 CLASS ACTION COMPLAINT
1
statutory and other legal questions within the class format, prosecution of
2
separate actions by individual members of the CALIFORNIA CLASS will
3
create the risk of:
4
1)
Inconsistent or varying adjudications with respect to individual
5
members of the CALIFORNIA CLASS which would establish
6
incompatible standards of conduct for the parties opposing the
7
CALIFORNIA CLASS; and/or,
8
2)
Adjudication with respect to individual members of the
9
CALIFORNIA CLASS which would as a practical matter be
10
dispositive of interests of the other members not party to the
11
adjudication or substantially impair or impede their ability to
12
protect their interests.
13
(b)
The parties opposing the CALIFORNIA CLASS have acted or refused to
14
act on grounds generally applicable to the CALIFORNIA CLASS, making
15
appropriate class-wide relief with respect to the CALIFORNIA CLASS
16
as a whole in that DEFENDANT uniformly fails to pay all wages due.
17
Including the correct overtime rate, for all hours worked by the members
18
of the CALIFORNIA CLASS as required by law;
19
1)
With respect to the First Cause of Action, the final relief on behalf
20
of the CALIFORNIA CLASS sought does not relate exclusively to
21
restitution because through this claim PLAINTIFF seeks
22
declaratory relief holding that the DEFENDANT’s policy and
23
practices constitute unfair competition, along with declaratory
24
relief, injunctive relief, and incidental equitable relief as may be
25
necessary to prevent and remedy the conduct declared to constitute
26
unfair competition;
27 28
(c)
Common questions of law and fact exist as to the members of the CALIFORNIA CLASS, with respect to the practices and violations of 12 CLASS ACTION COMPLAINT
1
California law as listed above, and predominate over any question
2
affecting only individual CALIFORNIA CLASS Members, and a Class
3
Action is superior to other available methods for the fair and efficient
4
adjudication of the controversy, including consideration of:
5
1)
The interests of the members of the CALIFORNIA CLASS in
6
individually controlling the prosecution or defense of separate
7
actions in that the substantial expense of individual actions will be
8
avoided to recover the relatively small amount of economic losses
9
sustained by the individual CALIFORNIA CLASS Members when
10
compared to the substantial expense and burden of individual
11
prosecution of this litigation;
12
2)
Class certification will obviate the need for unduly duplicative
13
litigation that would create the risk of:
14
A.
Inconsistent or varying adjudications with respect to
15
individual members of the CALIFORNIA CLASS, which
16
would establish incompatible standards of conduct for the
17
DEFENDANT; and/or,
18
B.
Adjudications with respect to individual members of the
19
CALIFORNIA CLASS would as a practical matter be
20
dispositive of the interests of the other members not parties
21
to the adjudication or substantially impair or impede their
22
ability to protect their interests;
23
3)
In the context of wage litigation because a substantial number of
24
individual CALIFORNIA CLASS Members will avoid asserting
25
their legal rights out of fear of retaliation by DEFENDANT, which
26
may adversely affect an individual’s job with DEFENDANT or
27
with a subsequent employer, the Class Action is the only means to
28
assert their claims through a representative; and, 13 CLASS ACTION COMPLAINT
1
4)
A class action is superior to other available methods for the fair
2
and efficient adjudication of this litigation because class treatment
3
will obviate the need for unduly and unnecessary duplicative
4
litigation that is likely to result in the absence of certification of
5
this action pursuant to Cal. Code of Civ. Proc. § 382.
6 7 8
29.
This Court should permit this action to be maintained as a Class Action
pursuant to Cal. Code of Civ. Proc. § 382 because: (a)
The questions of law and fact common to the CALIFORNIA CLASS
9
predominate over any question affecting only individual CALIFORNIA
10
CLASS Members because the DEFENDANT’s employment practices are
11
uniform and systematically applied with respect to the CALIFORNIA
12
CLASS;
13
(b)
A Class Action is superior to any other available method for the fair and
14
efficient adjudication of the claims of the members of the CALIFORNIA
15
CLASS because in the context of employment litigation a substantial
16
number of individual CALIFORNIA CLASS Members will avoid
17
asserting their rights individually out of fear of retaliation or adverse
18
impact on their employment;
19
(c)
The members of the CALIFORNIA CLASS are so numerous that it is
20
impractical to bring all members of the CALIFORNIA CLASS before the
21
Court;
22
(d)
PLAINTIFF, and the other CALIFORNIA CLASS Members, will not be
23
able to obtain effective and economic legal redress unless the action is
24
maintained as a Class Action;
25
(e)
There is a community of interest in obtaining appropriate legal and
26
equitable relief for the acts of unfair competition, statutory violations and
27
other improprieties, and in obtaining adequate compensation for the
28 14 CLASS ACTION COMPLAINT
1
damages and injuries which DEFENDANT’s actions have inflicted upon
2
the CALIFORNIA CLASS;
3
(f)
There is a community of interest in ensuring that the combined assets of
4
DEFENDANT are sufficient to adequately compensate the members of
5
the CALIFORNIA CLASS for the injuries sustained;
6
(g)
DEFENDANT has acted or refused to act on grounds generally applicable
7
to the CALIFORNIA CLASS, thereby making final class-wide relief
8
appropriate with respect to the CALIFORNIA CLASS as a whole;
9
(h)
The members of the CALIFORNIA CLASS are readily ascertainable from
10
the business records of DEFENDANT. The CALIFORNIA CLASS
11
consists of all individuals who are or previously were employed by
12
DEFENDANT in California as non-exempt employees paid on an hourly
13
basis and who received commission and/or bonus compensation during the
14
CALIFORNIA CLASS PERIOD; and,
15
(i)
Class treatment provides manageable judicial treatment calculated to bring
16
a efficient and rapid conclusion to all litigation of all wage and hour
17
related claims arising out of the conduct of DEFENDANT as to the
18
members of the CALIFORNIA CLASS.
19
30.
DEFENDANT maintains records from which the Court can ascertain and
20
identify by job title each of DEFENDANT’s employees who as have been systematically,
21
intentionally and uniformly subjected to DEFENDANT’s company policy, practices and
22
procedures as herein alleged. PLAINTIFF will seek leave to amend the Complaint to include
23
any additional job titles of similarly situated employees when they have been identified.
24 25 26
THE CALIFORNIA LABOR SUB-CLASS 31.
PLAINTIFF further brings the Second and Third Causes of Action on behalf of
27
a California sub-class, defined as all members of the CALIFORNIA CLASS who received
28
commission and/or bonus compensation payments during the same pay period in which they 15 CLASS ACTION COMPLAINT
1
worked overtime hours (the “CALIFORNIA LABOR SUB-CLASS”) during the period three
2
(3) years prior to the filing of the complaint and ending on the date as determined by the Court
3
(the “CALIFORNIA LABOR SUB-CLASS PERIOD”) pursuant to Cal. Code of Civ. Proc. §
4
382.
5
32.
DEFENDANT, as a matter of company policy, practice and procedure, and
6
in violation of the applicable Labor Code, Industrial Welfare Commission (“IWC”) Wage Order
7
requirements, and the applicable provisions of California law, intentionally, knowingly, and
8
wilfully, engages in a practice whereby DEFENDANT fails to correctly calculate overtime
9
compensation for the overtime hours worked by the PLAINTIFF and the other members of the
10
CALIFORNIA LABOR SUB-CLASS, even though DEFENDANT enjoys the benefit of this
11
work, requires employees to perform this work and permits or suffered to permit this overtime
12
work. DEFENDANT has uniformly denied these CALIFORNIA LABOR SUB-CLASS
13
Members overtime wages at the correct amount to which these employees are entitled in order
14
to unfairly cheat the competition and unlawfully profit. To the extent equitable tolling operates
15
to toll claims by the CALIFORNIA LABOR SUB-CLASS against DEFENDANT, the
16
CALIFORNIA LABOR SUB-CLASS PERIOD should be adjusted accordingly.
17
33.
DEFENDANT maintains records from which the Court can ascertain and
18
identify by name and job title, each of DEFENDANT’s employees who have been
19
systematically, intentionally and uniformly subjected to DEFENDANT’s company policy,
20
practices and procedures as herein alleged. PLAINTIFF will seek leave to amend the complaint
21
to include any additional job titles of similarly situated employees when they have been
22
identified.
23
34.
24 25 26 27 28
The CALIFORNIA LABOR SUB-CLASS is so numerous that joinder of all
CALIFORNIA LABOR SUB-CLASS Members is impracticable. 35.
Common questions of law and fact exist as to members of the CALIFORNIA
LABOR SUB-CLASS, including, but not limited, to the following: (a)
Whether DEFENDANT unlawfully fails to correctly calculate and pay overtime compensation to members of the CALIFORNIA LABOR SUB16 CLASS ACTION COMPLAINT
1
CLASS in violation of the California Labor Code and California
2
regulations and the applicable California Wage Order;
3
(b)
Whether the members of the CALIFORNIA LABOR SUB-CLASS are
4
entitled to overtime compensation for overtime hours worked under the
5
overtime pay requirements of California law;
6
(c)
Whether DEFENDANT fails to accurately record the applicable overtime
7
rates for all overtime hours worked by the PLAINTIFF and the other
8
members of the CALIFORNIA LABOR SUB-CLASS;
9
(d)
Whether DEFENDANT fails to provide the PLAINTIFF and the other
10
members of the CALIFORNIA LABOR SUB-CLASS with accurate
11
itemized wage statements;
12
(e)
13
above-listed conduct;
14
(f)
15
The proper measure of damages and penalties owed to the members of the CALIFORNIA LABOR SUB-CLASS; and,
16 17
Whether DEFENDANT has engaged in unfair competition by the
(g) 36.
Whether DEFENDANT’s conduct was willful.
DEFENDANT, as a matter of company policy, practice and procedure,
18
fails to accurately calculate overtime compensation for the CALIFORNIA LABOR SUB-
19
CLASS Members and fails to provide accurate records of the applicable overtime rates for the
20
overtime hours worked by these employees. All of the CALIFORNIA LABOR SUB-CLASS
21
Members, including the PLAINTIFF, are non-exempt employees who are paid on an hourly
22
basis, are paid for overtime hours worked, and are paid additional commission and/or non-
23
discretionary performance bonus wages by DEFENDANT according to uniform and systematic
24
company procedures as alleged herein above. This business practice is uniformly applied to
25
each and every member of the CALIFORNIA LABOR SUB-CLASS, and therefore, the
26
propriety of this conduct can be adjudicated on a class-wide basis.
27 28
37.
DEFENDANT violated the rights of the CALIFORNIA LABOR SUB-CLASS
under California law by: 17 CLASS ACTION COMPLAINT
1
(a)
Violating Cal. Lab. Code §§ 510, et seq., by failing to accurately pay the
2
PLAINTIFF and the members of the CALIFORNIA LABOR SUB-
3
CLASS the correct overtime pay for which DEFENDANT is liable
4
pursuant to Cal. Lab. Code § 1194; and,
5
(b)
Violating Cal. Lab. Code § 226, by failing to provide the PLAINTIFF and
6
the members of the CALIFORNIA LABOR SUB-CLASS with an
7
accurate itemized statement in writing showing all accurate and applicable
8
overtime rates in effect during the pay period and the corresponding
9
number of hours worked at each overtime rate by the employee.
10 11 12
38.
This Class Action meets the statutory prerequisites for the maintenance of a
Class Action as set forth in Cal. Code of Civ. Proc. § 382, in that: (a)
The persons who comprise the CALIFORNIA LABOR SUB-CLASS are
13
so numerous that the joinder of all CALIFORNIA LABOR SUB-CLASS
14
Members is impracticable and the disposition of their claims as a class
15
will benefit the parties and the Court;
16
(b)
Nearly all factual, legal, statutory, declaratory and injunctive relief issues
17
that are raised in this Complaint are common to the CALIFORNIA
18
LABOR SUB-CLASS and will apply uniformly to every member of the
19
CALIFORNIA LABOR SUB-CLASS;
20
(c)
The claims of the representative PLAINTIFF are typical of the claims of
21
each member of the CALIFORNIA LABOR SUB-CLASS. PLAINTIFF,
22
like all the other members of the CALIFORNIA LABOR SUB-CLASS,
23
is a non-exempt employee paid on an hourly basis and paid an additional
24
commission and/or non-discretionary performance bonus wage who has
25
been subjected to the DEFENDANT’s practice and policy which fails to
26
pay the correct rate of overtime wages due to the CALIFORNIA LABOR
27
SUB-CLASS for all overtime hours worked. PLAINTIFF sustained
28
economic injury as a result of DEFENDANT’s employment practices. 18 CLASS ACTION COMPLAINT
1
PLAINTIFF and the members of the CALIFORNIA LABOR SUB-
2
CLASS were and are similarly or identically harmed by the same
3
unlawful, deceptive, unfair and pervasive pattern of misconduct engaged
4
in by DEFENDANT; and,
5
(d)
The representative PLAINTIFF will fairly and adequately represent and
6
protect the interest of the CALIFORNIA LABOR SUB-CLASS, and has
7
retained counsel who are competent and experienced in Class Action
8
litigation. There are no material conflicts between the claims of the
9
representative PLAINTIFF and the members of the CALIFORNIA
10
LABOR SUB-CLASS that would make class certification inappropriate.
11
Counsel for the CALIFORNIA LABOR SUB-CLASS will vigorously
12
assert the claims of all CALIFORNIA LABOR SUB-CLASS Members.
13 14 15
39.
In addition to meeting the statutory prerequisites to a Class Action, this action
is properly maintained as a Class Action pursuant to Cal. Code of Civ. Proc. ยง 382, in that: (a)
Without class certification and determination of declaratory, injunctive,
16
statutory and other legal questions within the class format, prosecution of
17
separate actions by individual members of the CALIFORNIA LABOR
18
SUB-CLASS will create the risk of:
19
1)
Inconsistent or varying adjudications with respect to individual
20
members of the CALIFORNIA LABOR SUB-CLASS which
21
would establish incompatible standards of conduct for the parties
22
opposing the CALIFORNIA LABOR SUB-CLASS; or,
23
2)
Adjudication with respect to individual members of the
24
CALIFORNIA LABOR SUB-CLASS which would as a practical
25
matter be dispositive of interests of the other members not party to
26
the adjudication or substantially impair or impede their ability to
27
protect their interests.
28
(b)
The parties opposing the CALIFORNIA LABOR SUB-CLASS have acted 19 CLASS ACTION COMPLAINT
1
or refused to act on grounds generally applicable to the CALIFORNIA
2
LABOR SUB-CLASS, making appropriate class-wide relief with respect
3
to the CALIFORNIA LABOR SUB-CLASS as a whole in that
4
DEFENDANT uniformly fails to pay all wages due. Including the correct
5
overtime rate, for all overtime hours worked by the members of the
6
CALIFORNIA LABOR SUB-CLASS as required by law;
7
(c)
Common questions of law and fact predominate as to the members of the
8
CALIFORNIA LABOR SUB-CLASS, with respect to the practices and
9
violations of California Law as listed above, and predominate over any
10
question affecting only individual CALIFORNIA LABOR SUB-CLASS
11
Members, and a Class Action is superior to other available methods for
12
the fair and efficient adjudication of the controversy, including
13
consideration of:
14
1)
The interests of the members of the CALIFORNIA LABOR SUB-
15
CLASS in individually controlling the prosecution or defense of
16
separate actions in that the substantial expense of individual
17
actions will be avoided to recover the relatively small amount of
18
economic losses sustained by the individual CALIFORNIA
19
LABOR SUB-CLASS Members when compared to the substantial
20
expense and burden of individual prosecution of this litigation;
21
2)
Class certification will obviate the need for unduly duplicative
22
litigation that would create the risk of:
23
A.
Inconsistent or varying adjudications with respect to
24
individual members of the CALIFORNIA LABOR SUB-
25
CLASS, which would establish incompatible standards of
26
conduct for the DEFENDANT; and/or,
27 28
B.
Adjudications with respect to individual members of the CALIFORNIA LABOR SUB-CLASS would as a practical 20 CLASS ACTION COMPLAINT
1
matter be dispositive of the interests of the other members
2
not parties to the adjudication or substantially impair or
3
impede their ability to protect their interests;
4
3)
In the context of wage litigation because a substantial number of
5
individual CALIFORNIA LABOR SUB-CLASS Members will
6
avoid asserting their legal rights out of fear of retaliation by
7
DEFENDANT, which may adversely affect an individual’s job
8
with DEFENDANT or with a subsequent employer, the Class
9
Action is the only means to assert their claims through a
10
representative; and,
11
4)
A class action is superior to other available methods for the fair
12
and efficient adjudication of this litigation because class treatment
13
will obviate the need for unduly and unnecessary duplicative
14
litigation that is likely to result in the absence of certification of
15
this action pursuant to Cal. Code of Civ. Proc. § 382.
16 17 18
40.
This Court should permit this action to be maintained as a Class Action
pursuant to Cal. Code of Civ. Proc. § 382 because: (a)
The questions of law and fact common to the CALIFORNIA LABOR
19
SUB-CLASS predominate over any question affecting only individual
20
CALIFORNIA LABOR SUB-CLASS Members;
21
(b)
A Class Action is superior to any other available method for the fair and
22
efficient adjudication of the claims of the members of the CALIFORNIA
23
LABOR SUB-CLASS because in the context of employment litigation a
24
substantial number of individual CALIFORNIA LABOR SUB-CLASS
25
Members will avoid asserting their rights individually out of fear of
26
retaliation or adverse impact on their employment;
27 28
(c)
The members of the CALIFORNIA LABOR SUB-CLASS are so numerous that it is impractical to bring all members of the CALIFORNIA 21 CLASS ACTION COMPLAINT
1 2
LABOR SUB-CLASS before the Court; (d)
PLAINTIFF, and the other CALIFORNIA LABOR SUB-CLASS
3
Members, will not be able to obtain effective and economic legal redress
4
unless the action is maintained as a Class Action;
5
(e)
There is a community of interest in obtaining appropriate legal and
6
equitable relief for the acts of unfair competition, statutory violations and
7
other improprieties, and in obtaining adequate compensation for the
8
damages and injuries which DEFENDANT’s actions have inflicted upon
9
the CALIFORNIA LABOR SUB-CLASS;
10
(f)
There is a community of interest in ensuring that the combined assets of
11
DEFENDANT are sufficient to adequately compensate the members of
12
the CALIFORNIA LABOR SUB-CLASS for the injuries sustained;
13
(g)
DEFENDANT has acted or refused to act on grounds generally applicable
14
to the CALIFORNIA LABOR SUB-CLASS, thereby making final class-
15
wide relief appropriate with respect to the CALIFORNIA LABOR SUB-
16
CLASS as a whole;
17
(h)
The members of the CALIFORNIA LABOR SUB-CLASS are readily
18
ascertainable from the business records of DEFENDANT.
19
CALIFORNIA LABOR SUB-CLASS consists of all CALIFORNIA
20
CLASS Members who were paid by the DEFENDANT for overtime hours
21
worked during the CALIFORNIA LABOR SUB-CLASS PERIOD; and,
22
(i)
The
Class treatment provides manageable judicial treatment calculated to bring
23
a efficient and rapid conclusion to all litigation of all wage and hour
24
related claims arising out of the conduct of DEFENDANT as to the
25
members of the CALIFORNIA LABOR SUB-CLASS.
26 27
FIRST CAUSE OF ACTION
28
For Unlawful Business Practices 22 CLASS ACTION COMPLAINT
1
[Cal. Bus. And Prof. Code §§ 17200, et seq.]
2
(By PLAINTIFF and the CALIFORNIA CLASS and Against All Defendants)
3
41.
PLAINTIFF, and the other members of the CALIFORNIA CLASS, reallege and
4
incorporate by this reference, as though fully set forth herein, paragraphs 1 through 40 of this
5
Complaint.
6 7 8
42.
DEFENDANT is a “person” as that term is defined under Cal. Bus. and Prof.
Code § 17021. 43.
California Business & Professions Code §§ 17200, et seq. (the “UCL”) defines
9
unfair competition as any unlawful, unfair, or fraudulent business act or practice. Section
10
17203 authorizes injunctive, declaratory, and/or other equitable relief with respect to unfair
11
competition as follows:
12
Any person who engages, has engaged, or proposes to engage in unfair competition may be enjoined in any court of competent jurisdiction. The court may make such orders or judgments, including the appointment of a receiver, as may be necessary to prevent the use or employment by any person of any practice which constitutes unfair competition, as defined in this chapter, or as may be necessary to restore to any person in interest any money or property, real or personal, which may have been acquired by means of such unfair competition.
13 14 15 16
Cal. Bus. & Prof. Code § 17203. 17 44.
By the conduct alleged herein, DEFENDANT has engaged and continues to
18 engage in a business practice which violates California law, including but not limited to, Wage 19 Order 4-2001, the California Code of Regulations and the California Labor Code including 20 Sections 204, 226(a), 510, 512, 1194 & 1198, for which this Court should issue declaratory and 21 other equitable relief pursuant to Cal. Bus. & Prof. Code § 17203 as may be necessary to 22 prevent and remedy the conduct held to constitute unfair competition, including restitution of 23 wages wrongfully withheld. 24 45.
By the conduct alleged herein, DEFENDANT’s practices are unlawful and
25 unfair in that these practices violate public policy, are immoral, unethical, oppressive, 26 unscrupulous or substantially injurious to employees, and are without valid justification or 27 utility for which this Court should issue equitable and injunctive relief pursuant to Section 28 23 CLASS ACTION COMPLAINT
1
17203 of the California Business & Professions Code, including restitution of wages wrongfully
2
withheld.
3
46.
By the conduct alleged herein, DEFENDANT’s practices are deceptive and
4
fraudulent in that DEFENDANT’s uniform policy and practice fails to pay PLAINTIFF, and
5
other members of the CALIFORNIA CLASS, wages due for overtime hours worked, fails
6
accurately to record the applicable rate of all overtime hours worked, and fails to provide the
7
required amount of overtime compensation due to a systematic miscalculation of the overtime
8
rate that cannot be justified, pursuant to the applicable Cal. Lab. Code, and Industrial Welfare
9
Commission requirements in violation of Cal. Bus. Code §§ 17200, et seq., and for which this
10
Court should issue injunctive and equitable relief, pursuant to Cal. Bus. & Prof. Code § 17203,
11
including restitution of wages wrongfully withheld.
12
47.
By the conduct alleged herein, DEFENDANT’s practices are also unlawful,
13
unfair and deceptive in that DEFENDANT’s employment practices caused the PLAINTIFF and
14
the other members of the CALIFORNIA CLASS to be underpaid during their employment with
15
DEFENDANT.
16
48.
By and through the unlawful and unfair business practices described herein,
17
DEFENDANT has obtained valuable property, money and services from the PLAINTIFF and
18
the other members of the CALIFORNIA CLASS, including earned wages for all overtime hours
19
worked, and has deprived them of valuable rights and benefits guaranteed by law and contract,
20
all to the detriment of these employees and to the benefit of DEFENDANT so as to allow
21
DEFENDANT to unfairly compete against competitors who comply with the law.
22
49.
All the acts described herein as violations of, among other things, the Industrial
23
Welfare Commission Wage Orders, the California Code of Regulations, and the California
24
Labor Code, are unlawful and in violation of public policy, are immoral, unethical, oppressive
25
and unscrupulous, are deceptive, and thereby constitute unlawful, unfair and deceptive business
26
practices in violation of Cal. Bus. & Prof. Code §§ 17200, et seq.
27 28
50.
PLAINTIFF and the other members of the CALIFORNIA CLASS are entitled to,
and do, seek such relief as may be necessary to restore to them the money and property which 24 CLASS ACTION COMPLAINT
1
DEFENDANT has acquired, or of which the PLAINTIFF and the other members of the
2
CALIFORNIA CLASS have been deprived, by means of the above described unlawful and
3
unfair business practices, including earned but unpaid wages for all hours worked.
4
51.
PLAINTIFF and the other members of the CALIFORNIA CLASS are further
5
entitled to, and do, seek a declaration that the described business practices are unlawful, unfair
6
and deceptive, and that injunctive relief should be issued restraining DEFENDANT from
7
engaging in any unlawful and unfair business practices in the future.
8
52.
PLAINTIFF and the other members of the CALIFORNIA CLASS have no plain,
9
speedy and/or adequate remedy at law that will end the unlawful and unfair business practices
10
of DEFENDANT. Further, the practices herein alleged presently continue to occur unabated.
11
As a result of the unlawful and unfair business practices described herein, the PLAINTIFF and
12
the other members of the CALIFORNIA CLASS have suffered and will continue to suffer
13
irreparable legal and economic harm unless DEFENDANT is restrained from continuing to
14
engage in these unlawful and unfair business practices.
15 16
SECOND CAUSE OF ACTION
17
For Failure To Pay Overtime Compensation
18
[Cal. Lab. Code §§ 204, 510, 1194 and 1198]
19
(By PLAINTIFF and the CALIFORNIA LABOR SUB-CLASS and Against All
20
Defendants)
21
53.
PLAINTIFF, and the other members of the CALIFORNIA LABOR SUB-
22
CLASS, reallege and incorporate by this reference, as though fully set forth herein, paragraphs
23
1 through 52 of this Complaint.
24
54.
PLAINTIFF and the other members of the CALIFORNIA LABOR SUB-CLASS
25
bring a claim for DEFENDANT’s willful and intentional violations of the California Labor
26
Code and the Industrial Welfare Commission requirements for DEFENDANT’s failure to
27
accurately calculate the applicable rates for all overtime hours worked by PLAINTIFF and other
28
member of the CALIFORNIA LABOR SUB-CLASS and DEFENDANT’s failure to properly 25 CLASS ACTION COMPLAINT
1
compensate the members of the CALIFORNIA LABOR SUB-CLASS for overtime hours
2
worked, including, work performed in excess of eight (8) hours in a workday and forty (40)
3
hours in any workweek.
4 5 6
55.
Pursuant to Cal. Lab. Code § 204, other applicable laws and regulations, and
public policy, an employer must timely pay its employees for all hours worked. 56.
Cal. Lab. Code § 510 further provides that employees in California shall not be
7
employed more than eight (8) hours per workday and more than forty (40) hours per workweek
8
unless they receive additional compensation beyond their regular wages in amounts specified
9
by law.
10
57.
Cal. Lab. Code § 1194 establishes an employee’s right to recover unpaid wages,
11
including overtime compensation and interest thereon, together with the costs of suit. Cal. Lab.
12
Code § 1198 further states that the employment of an employee for longer hours than those
13
fixed by the Industrial Welfare Commission is unlawful.
14
58.
DEFENDANT maintains a uniform wage practice of paying the PLAINTIFF
15
and the other members of the CALIFORNIA LABOR SUB-CLASS without regard to the
16
correct applicable overtime rate for the number of overtime hours they worked. As set forth
17
herein, DEFENDANT’s uniform policy and practice is to unlawfully and intentionally deny
18
timely payment of wages due for the overtime hours worked by the PLAINTIFF and the other
19
members of the CALIFORNIA LABOR SUB-CLASS, and DEFENDANT in fact fails to pay
20
these employees the correct applicable overtime wages for all overtime hours worked.
21
59.
DEFENDANT’s uniform pattern of unlawful wage and hour practices
22
manifested, without limitation, applicable to the CALIFORNIA LABOR SUB-CLASS as a
23
whole, as a result of implementing a uniform policy and practice that denies accurate
24
compensation to the PLAINTIFF and the other members of the CALIFORNIA LABOR SUB-
25
CLASS for all overtime hours worked, including, the work performed in excess of eight (8)
26
hours in a workday and forty (40) hours in any workweek.
27 28
60.
In committing these violations of the California Labor Code, DEFENDANT
inaccurately calculates the applicable overtime rates and consequently underpays the actual 26 CLASS ACTION COMPLAINT
1
hours worked. DEFENDANT acted in an illegal attempt to avoid the payment of all earned
2
wages, and other benefits in violation of the California Labor Code, the Industrial Welfare
3
Commission requirements and other applicable laws and regulations.
4
61.
As a direct result of DEFENDANT’s unlawful wage practices as alleged herein,
5
the PLAINTIFF and the other members of the CALIFORNIA LABOR SUB-CLASS do not
6
receive full compensation for all overtime hours worked.
7
62.
Cal. Lab. Code § 515 sets out various categories of employees who are exempt
8
from the overtime requirements of the law. None of these exemptions are applicable to the
9
PLAINTIFF and the other members of the CALIFORNIA LABOR SUB-CLASS. Further, the
10
PLAINTIFF and the other members of the CALIFORNIA LABOR SUB-CLASS are not subject
11
to a valid collective bargaining agreement that would preclude the causes of action contained
12
herein this Complaint. Rather, the PLAINTIFF brings this Action on behalf of himself and the
13
CALIFORNIA LABOR SUB-CLASS based on DEFENDANT’s violations of non-negotiable,
14
non-waiveable rights provided by the State of California.
15
63.
During the CALIFORNIA LABOR SUB-CLASS PERIOD, the PLAINTIFF and
16
the other members of the CALIFORNIA LABOR SUB-CLASS are paid less for hours worked
17
that they are entitled to, constituting a failure to pay all earned wages.
18
64.
DEFENDANT fails to accurately pay the PLAINTIFF and the other members of
19
the CALIFORNIA LABOR SUB-CLASS overtime wages for the hours they worked which
20
were in excess of the maximum hours permissible by law as required by Cal. Lab. Code §§ 510,
21
1194 & 1198, even though the PLAINTIFF and the other members of the CALIFORNIA
22
LABOR SUB-CLASS are regularly required to work, and do in fact work, overtime hours as
23
to which DEFENDANT fails to accurately record and pay using the applicable overtime rate
24
as evidenced by DEFENDANT’s business records and witnessed by employees.
25
65.
By virtue of DEFENDANT's unlawful failure to accurately pay all earned
26
compensation to the PLAINTIFF and the other members of the CALIFORNIA LABOR SUB-
27
CLASS for the true number of hours they worked, the PLAINTIFF and the other members of
28
the CALIFORNIA LABOR SUB-CLASS have suffered and will continue to suffer an economic 27 CLASS ACTION COMPLAINT
1
injury in amounts which are presently unknown to them and which will be ascertained
2
according to proof at trial.
3
66.
DEFENDANT knew or should have known that the PLAINTIFF and the other
4
members of the CALIFORNIA LABOR SUB-CLASS are under compensated for their overtime
5
hours worked. DEFENDANT systematically elected, either through intentional malfeasance
6
or gross nonfeasance, to not pay employees for their labor as a matter of uniform company
7
policy, practice and procedure, and DEFENDANT perpetrated this systematic scheme by
8
refusing to pay the PLAINTIFF and the other members of the CALIFORNIA LABOR SUB-
9
CLASS the applicable overtime rate.
10
67.
In performing the acts and practices herein alleged in violation of California labor
11
laws, and refusing to compensate the members of the CALIFORNIA LABOR SUB-CLASS for
12
all hours worked and provide them with the requisite overtime compensation, DEFENDANT
13
acted and continues to act intentionally, oppressively, and maliciously toward the PLAINTIFF
14
and the other members of the CALIFORNIA LABOR SUB-CLASS with a conscious of and
15
utter disregard for their legal rights, or the consequences to them, and with the despicable intent
16
of depriving them of their property and legal rights, and otherwise causing them injury in order
17
to increase company profits at the expense of these employees.
18
68.
PLAINTIFF and the other members of the CALIFORNIA LABOR SUB-CLASS
19
therefore request recovery of all unpaid wages, including overtime wages, according to proof,
20
interest, statutory costs, as well as the assessment of any statutory penalties against
21
DEFENDANT, in a sum as provided by the California Labor Code and/or other applicable
22
statutes. To the extent overtime compensation is determined to be owed to the CALIFORNIA
23
LABOR SUB-CLASS Members who have terminated their employment, DEFENDANT’S
24
conduct also violates Labor Code §§ 201 and/or 202, and therefore these individuals are also
25
be entitled to waiting time penalties under Cal. Lab. Code § 203, which penalties are sought
26
herein on behalf of these CALIFORNIA LABOR SUB-CLASS Members. DEFENDANT’s
27
conduct as alleged herein was willful, intentional and not in good faith.
28
PLAINTIFF and other CALIFORNIA LABOR SUB-CLASS Members are entitled to seek and 28 CLASS ACTION COMPLAINT
Further, the
1
recover statutory costs.
2 3
THIRD CAUSE OF ACTION
4
For Failure to Provide Accurate Itemized Statements
5
[Cal. Lab. Code § 226]
6
(By PLAINTIFF and the CALIFORNIA LABOR SUB-CLASS and Against All
7
Defendants)
8 9 10 11 12
69.
PLAINTIFF, and the other members of the CALIFORNIA LABOR SUB-
CLASS, reallege and incorporate by this reference, as though fully set forth herein, paragraphs 1 through 68 of this Complaint. 70.
Cal. Labor Code § 226 provides that an employer must furnish employees with
an “accurate itemized” statement in writing showing:
13
(1) gross wages earned,
14
(2) total hours worked by the employee, except for any employee whose compensation
15
is solely based on a salary and who is exempt from payment of overtime under
16
subdivision (a) of Section 515 or any applicable order of the Industrial Welfare
17
Commission,
18
(3) the number of piecerate units earned and any applicable piece rate if the employee
19
is paid on a piece-rate basis,
20
(4) all deductions, provided that all deductions made on written orders of the employee
21
may be aggregated and shown as one item,
22
(5) net wages earned,
23
(6) the inclusive dates of the period for which the employee is paid,
24
(7) the name of the employee and his or her social security number, except that by
25
January 1, 2008, only the last four digits of his or her social security number or an
26
employee identification number other than a social security number may be shown on
27
the itemized statement,
28
(8) the name and address of the legal entity that is the employer, and 29 CLASS ACTION COMPLAINT
1
(9) all applicable hourly rates in effect during the pay period and the corresponding
2
number of hours worked at each hourly rate by the employee.
3
71.
At all times relevant herein, DEFENDANT violated Cal. Lab. Code ยง 226 in
4
that DEFENDANT fails to provide an accurate wage statement in writing that properly and
5
accurately itemized the effective overtime rates of pay for overtime hours worked by the
6
PLAINTIFF and the other members of the CALIFORNIA LABOR SUB-CLASS and thereby
7
also fails to set forth the correct overtime wages earned by the employees.
8
72.
DEFENDANT knowingly and intentionally fails to comply with Cal. Lab.
9
Code ยง 226, causing injury and damages to the PLAINTIFF and the other members of the
10
CALIFORNIA LABOR SUB-CLASS. These damages include, but are not limited to, costs
11
expended calculating the correct rates for the overtime hours worked and the amount of
12
employment taxes which were not properly paid to state and federal tax authorities. These
13
damages are difficult to estimate. Therefore, the PLAINTIFF and the other members of the
14
CALIFORNIA LABOR SUB-CLASS may elect to recover liquidated damages of fifty dollars
15
($50.00) for the initial pay period in which the violation occurred, and one hundred dollars
16
($100.00) for each violation in a subsequent pay period pursuant to Cal. Lab. Code ยง 226, in
17
an amount according to proof at the time of trial (but in no event more than four thousand
18
dollars ($4,000.00) for the PLAINTIFF and each respective member of the CALIFORNIA
19
LABOR SUB-CLASS herein).
20 21
PRAYER FOR RELIEF WHEREFORE, PLAINTIFF prays for judgment against each Defendant, jointly and
22 23
severally, as follows:
24
1.
25
On behalf of the CALIFORNIA CLASS: A)
CLASS as a class action pursuant to Cal. Code of Civ. Proc. ยง 382;
26 27 28
That the Court certify the First Cause of Action asserted by the CALIFORNIA
B)
An order temporarily, preliminarily and permanently enjoining and restraining DEFENDANT from engaging in similar unlawful conduct as set forth herein; 30 CLASS ACTION COMPLAINT
1
C)
An order requiring DEFENDANT to pay all wages and all sums unlawfuly
2
withheld from compensation due to PLAINTIFF and the other members of the
3
CALIFORNIA CLASS; and,
4
D)
Restitutionary disgorgement of DEFENDANT’s ill-gotten gains into a fluid fund
5
for restitution of the sums incidental to DEFENDANT’s violations due to
6
PLAINTIFF and to the other members of the CALIFORNIA CLASS.
7
2.
8
On behalf of the CALIFORNIA LABOR SUB-CLASS: A)
9
That the Court certify the Second and Third Causes of Action asserted by the CALIFORNIA LABOR SUB-CLASS as a class action pursuant to Cal. Code of
10
Civ. Proc. § 382;
11
B)
Compensatory damages, according to proof at trial, including compensatory
12
damages for compensation due PLAINTIFF and the other members of the
13
CALIFORNIA LABOR SUB-CLASS, during the applicable CALIFORNIA
14
LABOR SUB-CLASS PERIOD plus interest thereon at the statutory rate;
15
C)
The wages of all terminated employees in the CALIFORNIA LABOR
16
SUB-CLASS as a penalty from the due date thereof at the same rate until paid or
17
until an action therefore is commenced, in accordance with Cal. Lab. Code § 203;
18
and,
19
D)
The greater of all actual damages or fifty dollars ($50) for the initial pay period
20
in which a violation occurs and one hundred dollars ($100) per each member of
21
the CALIFORNIA LABOR SUB-CLASS for each violation in a subsequent pay
22
period, not exceeding an aggregate penalty of four thousand dollars ($4,000), and
23
an award of costs for violation of Cal. Lab. Code § 226.
24
3.
On all claims:
25
A)
An award of interest, including prejudgment interest at the legal rate;
26
B)
Such other and further relief as the Court deems just and equitable; and,
27
C)
An award of penalties and cost of suit, as allowable under the law.
28
Neither this prayer nor any other allegation or prayer in this Complaint is 31 CLASS ACTION COMPLAINT