Southern California Healthcare Labor Investigation

In the lawsuit, the Class Representative alleges that Southern California Healthcare System and/or its associates committed unlawful business practices in the State of California by:  

1. Failing to pay the proposed Class Members all of their earned minimum wages and overtime wages.
2. Failing to pay the proposed Class Members all of their earned overtime for shifts worked in excess of 8 hours in a day or 40 hours in seven-day period; 
3. Failing to pay the proposed Class Members all of their earned wages upon the termination of their employment with Southern California Healthcare System
4. Failing to provide the proposed Class Members accurate and lawful wage statements;
5. Failing to authorize and permit the proposed Class Members their earned, paid 10 consecutive minute, uninterrupted rest period for shifts worked in excess of 4 hours or a second rest period for shifts in excess of 6 hours; 
6. Failing to provide the proposed Class Members their earned 30 consecutive minute, uninterrupted meal periods for shifts worked in excess of 5 hours or a second meal period for shifts in excess of 10 hours; 
7. Failing to indemnify employees for all necessary expenditures or losses incurred by the employee in direct consequence of the discharge of his or her duties.
8. Failing to pay out vested vacation time upon termination.

Further, it is alleged that Defendant’s violations of California labor law warrant the imposition of penalties against Southern California Healthcare System pursuant to the Private Attorney General Act. 

The law in California for non-exempt employees is generally as follows:  

FAILURE TO PAY MINIMUM WAGES – The minimum wage for employees fixed by the commission or by any applicable state or local law, is the minimum wage to be paid to employees, and the payment of a lower wage than the minimum so fixed is unlawful. Notwithstanding any agreement to work for a lesser wage, any employee receiving less than the legal minimum wage is entitled to recover in a civil action the unpaid balance of the full amount of this minimum wage, including interest thereon, reasonable attorney’s fees, and costs of suit.

FAILURE TO PROVIDE OVERTIME – Eight hours of labor constitutes a day’s work. Any work in excess of eight hours in one workday and any work in excess of 40 hours in any one workweek and the first eight hours worked on the seventh day of work in any one workweek shall be compensated at the rate of no less than one and one-half times the regular rate of pay for an employee. Any work in excess of 12 hours in one day shall be compensated at the rate of no less than twice the regular rate of pay for an employee. In addition, any work in excess of eight hours on any seventh day of a workweek shall be compensated at the rate of no less than twice the regular rate of pay of an employee. Notwithstanding any agreement to work for a lesser wage, any employee receiving less than the legal overtime wage is entitled to recover in a civil action the unpaid balance of the full amount of this overtime wage, including interest thereon, reasonable attorney’s fees, and costs of suit.

FAILURE TO PROVIDE MEAL BREAKS – No employer shall employ any person for a work period of more than five (5) hours without a meal period of not less than thirty (30) minutes, except that when a work period of not more than six (6) hours will complete the day’s work the meal period may be waived by mutual consent of the employer and employee. Unless the employee is relieved of all duty during a thirty (30) minute meal period, the meal period shall be considered an “on duty” meal period and counted as time worked. An “on duty” meal period shall be permitted only when the nature of the work prevents an employee from being relieved of all duty and when by written agreement between the parties an on-the-job paid meal period is agreed to. The written agreement shall state that the employee may, in writing, revoke the agreement at any time. If an employer fails to provide an employee a meal period in accordance with the applicable provisions of this Order, the employer shall pay the employee one (1) hour of pay at the employee’s regular rate of compensation for each work day that the meal period is not provided.   

FAILURE TO PROVIDE REST BREAKS – Every employer shall authorize and permit all employees to take rest periods, which insofar as practicable shall be in the middle of each work period. The authorized rest period time shall be based on the total hours worked daily at the rate of ten (10) minutes net rest time per four (4) hours or major fraction thereof. However, a rest period need not be authorized for employees whose total daily work time is less than three and one-half (3 ½) hours. Authorized rest period time shall be counted as hours worked for which there shall be no deduction from wages.  If an employer fails to provide an employee a rest period in accordance with the applicable provisions of this Order, the employer shall pay the employee one (1) hour of pay at the employee’s regular rate of compensation for each work day that the rest period is not provided.

WAITING TIME PENALTIES – If an employer discharges an employee, the wages earned and unpaid at the time of discharge are due and payable immediately.  If an employee not having a written contract for a definite period quits his or her employment, his or her wages shall become due and payable not later than 72 hours thereafter, unless the employee has given 72 hours previous notice of his or her intention to quit, in which case the employee is entitled to his or her wages at the time of quitting.  If an employer willfully fails to pay, without abatement or reduction, in accordance with Sections 201, 201.5, 202, and 205.5 of the California Labor Code, any wages of an employee who is discharged or who quits, the wages of the employee shall continue as a penalty from the due date thereof at the same rate until paid or until an action therefore is commenced; but the wages shall not continue for more than 30 days.  

FAILURE TO PROVIDE ACCURATE WAGE STATEMENTS – Every employer shall, semimonthly or at the time of each payment of wages, furnish each of his or her employees, either as a detachable part of the check, draft, or voucher paying the employee’s wages, or separately when wages are paid by personal check or cash, an accurate itemized statement in writing showing (1) gross wages earned, (2) total hours worked by the employee, except for any employee whose compensation is solely based on a salary and who is exempt from payment of overtime under subdivision (a) of Section 515 or any applicable order of the Industrial Welfare Commission … (4) all deductions, provided that all deductions made on written orders of the employee may be aggregated and shown as one item, (5) net wages earned, (6) the inclusive dates of the period for which the employee is paid, (7) the name of the employee… and (9) all applicable hourly rates in effect during the pay period and the corresponding number of hours worked at each hourly rate by the employee. The deductions made from payments of wages shall be recorded in ink or other indelible form, properly dated, showing the month, day, and year, and a copy of the statement or a record of the deductions shall be kept on file by the employer for at least three years at the place of employment or at a central location within the State of California.  (e) An employee suffering injury as a result of a knowing and intentional failure by an employer to comply with subdivision (a) is entitled to recover the greater of all actual damages or fifty dollars ($50) for the initial pay period in which a violation occurs and one hundred dollars ($100) per employee for each violation in a subsequent pay period, not exceeding an aggregate penalty of four thousand dollars ($4,000), and is entitled to an award of costs and reasonable attorney’s fees.