Unpaid Wages Legal News Articles & Interviews

Los Angeles, CA Who is minding the store? 7-Eleven franchisees say they aren’t; they claim that Seven-Eleven, Inc. is in complete control and treats them like “glorified managers” rather than business owners. The franchise owners say they have been misclassified as independent contractors rather than employees. At the heart of this matter is the AB5 law.

Los Angeles, CA A two-year old California labor lawsuit just took a new turn. Plaintiffs in Rasmussen v. Disney have been permitted to amend their complaint to add allegations that Disney “maintains a strict policy of pay secrecy” in violation of California labor law. If proved at trial, the allegation could establish a link between prohibited conduct and widespread pay discrepancies between men and women who perform similar jobs at Disney – giving lie to the claim that the pattern can be explained by differences in performance. Pay secrecy is thought to hurt female workers because it deprives them of the information they need to demand equal pay.

San Francisco, CA On February 23, the Ninth Circuit largely upheld a District Court grant of summary judgment to flight attendants in their class action lawsuit against Virgin America. Bernstein v. Virgin America Inc. alleged that the airline had failed to pay minimum wage and overtime and permit meal and rest breaks, as required by California labor law. The Ninth Circuit did, however, reduce certain penalties assessed against Virgin America.

Fresno, CA On February 23, a group of Walmart workers brought an unpaid wages lawsuit against Walmart, claiming that they should have been paid for time spent undergoing COVID-19 screenings that were required before they were allowed to clock-in. Haro v. Walmart alleges that Walmart’s practice violates both the California Labor Code and the federal Fair Labor Standards Act.

Los Angeles, CA Former motel employee William Hang filed a wage and hour lawsuit against his employer, but when Hang’s attorney sought the employer’s payment and obtained a default judgment of $255,000, he discovered that the employer had coerced Hang into a substantially less settlement: $20,000 cash.

San Diego, CA On February 8, the U.S. District Court for the Southern District of California approved a proposed settlement of Kelley v. City of San Diego. The settlement ends a class action California labor lawsuit brought by San Diego firefighters who claim that their overtime payments were miscalculated under the provisions of the Fair Labor Standards Act. Under the terms of the settlement, San Diego will pay $1.575 million in back overtime and $1.575 million in liquidated damages as well as attorneys' fees and costs.

Washington, DC  On February 2, the FTC announced that Amazon will pay $6.17 million to settle Federal Trade Commission charges that the company pocketed tips promised to Amazon Flex drivers. The company allegedly changed its driver compensation structure in 2016 without informing drivers. Pending California labor lawsuits against Amazon, those, like lawsuits in Massachusetts and other states can be expected to continue. Although the settlement has no precedential value for these lawsuits, it builds a larger picture of worker mistreatment and widespread disregard for the requirements of wage and hour and consumer protection laws.

San Diego, CA On January 25 the California Labor Commissioner issued citations and filed an unpaid wages lawsuit to collect nearly $1.3 million allegedly owed to 189 bakery workers. The Department of Industrial Relations action follows the 2019 closure of the Southern California bakery.

San Francisco, CA A lawsuit filed by rideshare drivers and the Service Employees International Union seeking to overturn Prop 22, which exempts gig workers from key California labor law AB5, will not be heard by the Supreme Court. But it’s not over yet: the court suggested that plaintiffs could still file their case in a lower court.

Los Angeles, CA Another Hero Pay wage hike, this time local government-mandated pay, requires that grocery companies with over 300 employees increase California hourly wages an extra $4 per hour. The salary boost is meant to compensate grocery store workers for the dangers they face during the coronavirus pandemic. However, it seems to have backfired: Some grocery stores have closed, leaving hundreds of frontline grocery workers with zero wages.