Wage Law

A group of more than 500 company truck drivers for Prudential Overall Supply are set to receive their shares of a $6.6 million settlement over failure to pay overtime and permit the drivers to take their meal breaks. The Fresno County Superior Court issued its ruling granting final approval of the settlement last week. The settlement agreement had been reached in July, after the case had been pending for three years. Drivers will receive their checks later this month.

Among other things, the drivers alleged that they had to work through their lunches, but that the company was clocking them out while they worked, as if the meal break had been taken. This problem is surprisingly common, particularly among companies that classify their drivers as independent contractors. If you would like to have your situation reviewed to see if you have a claim, drop us an email and we would be happy to give you a free evaluation.

A federal judge in Santa Ana recently approved a $19.5 million settlement of class action overtime claims brought by 1300 insurance sales agents who worked for Automobile Club of Southern California. The agents had been misclassified as outside sales staff, were denied overtime pay and had to buy gifts to promote sales. The case was filed in 1999, and settled only after five years of litigation, including a short trial in 2002. In addition to paying to settle overtime and gift expense claims, the Auto Club agreed to reclassify its agents as non-exempt employees entitled to overtime. Eligible workers will receive an average of $70 per week.

Except within the mercantile industry, which primarily means retail sales staff, a commissioned sales employee is usually entitled to overtime pay, meal and rest breaks and all of the other protections afforded any other class of worker. Even in the mercantile industry, sales staff are entitled to meal and rest breaks. If you would like to have your situation reviewed to see if you have a claim, drop us an email and we would be happy to give you a free evaluation.

Southern California grocery chains Albertsons, Ralphs and Vons have agreed to pay $22.4 million to settle a class-action lawsuit filed by janitors who were illegally misclassified as independent contractors so that their employers could avoid complying with California wage and hour laws. The scheme called for the janitors to be characterized as "subcontractors" for Building One Service Solutions, a now-bankrupt janitorial service that "rented" the workers, mostly poor hispanic men, to the stores. The janitors did not provide their own tools, and worked on a schedule under the direct supervision of store managers. In every respect, they were treated as employees, except when it came time for things such as overtime pay, breaks and other rights that employees have, but independent contractors don't.

The money will be among more than 2,000 janitors who were employed from 1994 to 2001. Each worker will receive up to $9,300, depending on where they worked and for how long.

The misclassification of independent contractors is a common way for employers to avoid paying overtime, employer's share of payroll taxes, and unemployment benefits, as well as to avoid giving meal and rest periods to their workers. If you work as an independent contractor in the State of California and would like to have your situation reviewed to see if you have a claim, drop us an email and we would be happy to give you a free evaluation.