Articles Tagged with Los Angeles wage theft lawyer

Wage theft is a serious problem in California. As Los Angeles wage and hour lawyers, we have seen this play out in almost every industry and at nearly every level of employment, but it tends to occur most often to the most vulnerable workers. The fast-food industry is no exception. One way that companies try to sidestep the worst outcomes in these cases is to, where possible, bar workers from banding together in class action litigation. This is achieved through mandatory employment arbitration agreements, which have largely been upheld by the courts, up to and including the U.S. Supreme Court, via an early 20th Century law known as the Federal Arbitration Act.fast food wage theft

However, using this tactic in a series of California wage theft lawsuits may have backfired in the case of one national fast-food chain, according to The Los Angeles Times. The story begins as so many do: Large, chain employers cutting corners of labor laws and allegedly committing wage theft is fairly common, as is the practice of mandatory employment arbitration. What makes the recently-highlighted situation different is that in trying to shield itself from a class action litigation for wage theft, the company may have effectively shot itself in the foot.

This particular fast-food chain has some 2,300 restaurant locations nationally, and it’s been battling some 10,000 claims of wage theft for the last six years. Last summer, the company won its motion filed in a federal court in Colorado to compel some 2,800 workers who filed lawsuits to instead participate in mandatory employment arbitration. However, employment lawyers for the company may now be wondering if this was the smartest move because now it is facing tens of thousands of individual arbitration proceedings across the country – proceedings it is compelled to pay for itself and which could cost tens of thousands of dollars each. The alternative of a class action lawsuit may not seem so burdensome considering it would require a single group of lawyers in one location, rather than thousands scattered before abitrators across the U.S. As it now stands, according to The Times, approximately 150 claims have been filed. Continue reading

Wage theft from California workers isn’t always about paying less than minimum wage. Sometimes, it’s failing to pay wages for expected duties the company doesn’t consider “work.” We saw this with factory workers required to spend upwards of 20 minutes daily donning and doffing their uniforms on site. More recently, we saw it with Starbucks in the six-year battle, ending in the California Supreme Court, over failure to pay for unpaid tasks like locking up after closing – something that only takes an extra 5-to-10 minutes daily, but multiplied across days, weeks, months and years and many thousands of workers adds up to significant skimming off the top.Los Angeles wage theft attorney

Other recent California wage theft cases focused on so-called “call-in shifts” or “on-call work.” This is when workers are required to clear their schedules in the anticipation they might be needed if it’s a hectic night. However, in some cases, workers weren’t being paid despite re-arranging their schedules to adjust for the possibility.

California labor law separates this time into two different categories: Standby/ waiting time and response/ reporting time. The case law that established all this started with the U.S. Supreme Court’s 1944 case of Armour & Co. v. Wantock, though California has adopted several provisions and tests of applicability on its own.

Standby/ waiting time is time the employee is required to remain at an employer’s place of business and respond to emergency calls. Workers are required to be paid for all of this time, though the rate can change, particularly if the standby time is “uncontrolled” by the employer and is otherwise free time. Response and reporting time is that wherein employee is required to respond to a call or text – that has to be paid also, with the worker responsible for keeping track. As Los Angeles wage theft attorneys can explain, only de minimus work (literally one or two minutes) isn’t compensable. For every day the worker is required to report to work and does report to work but isn’t paid, employees are paid half the usual wage for that shift – but in no event for less than two hours or more than four hours. If a worker is required to report back to work on any given day and only works for two hours are less, they are to be paid at their regular pay rate (not less than minimum wage) for those two hours.  Continue reading