$3.2M Awarded to Fired California Hospital Employee in Wrongful Termination and Discrimination Suit

On November 5th, 2018, a former warehouse employee at Loma Linda University Medical Center was awarded $3.2 million by a jury. The plaintiff, 44-year old Hugo Lizarraga, claims that he was harassed by his supervisors at the California medical facility for years until he was eventually fired due to his Islamic beliefs.

Lizarraga worked in the California hospital warehouse for 20 years. He claims that he was a victim of both religious and disability discrimination on the part of his supervisors, other employees, and the human resources department for more than six years. Lizarraga filed a California discrimination lawsuit in September 2016.

Legal Definitions:

Wrongful Termination – A situation in which an employee’s contract of employment is terminated by the employer and the termination breaches one or more terms of the contract of employment, a statute provision, or employment law.

Religious Discrimination – A situation in which an individual or entity treats a person (an applicant or employee) unfavorably because of their religious beliefs. The law protects not only those individuals who belong to traditional, organized religious, like Buddhism, Christianity, Hinduism, Islam, and Judaism, but also those who have sincerely held religious, ethical or moral beliefs.

Disability Discrimination – A situation in which an employer or other entity that is covered by the Americans with Disabilities Act or Rehabilitation Act, treats a qualified applicant or employee unfavorably because they have a disability.

According to the lawsuit, Lizarraga worked at the hospital for more than 10 years and never experienced harassment. The harassment began in 2012 after he converted to Islam, broke his thumb and had a physician place him on modified duty. At that point, Lizarraga’s supervisors started to harass him.

The Loma Linda, California hospital disagrees with the jury’s verdict and denies the allegations claiming that Lizarraga was not discharged due to his Islamic beliefs, but because reported threatening conduct. The hospital spokesperson claimed that the facility complies with federal and state laws on discrimination and harassment and does not tolerate either.

If you have concerns about what constitutes workplace discrimination or if you have been wrongfully terminated due to a disability or your religious beliefs, please get in touch with one of the experienced California employment law attorneys at Blumenthal Nordrehaug Bhowmik De Blouw LLP.

Shell Refinery has $7.7M Wage Deal on the Table for Pipeline Workers

Shell Oil owns a number of pipeline terminals and refineries. A putative class of workers pulled from both are likely to see the $7.7 million wage and hour settlement for their case approved. The California federal judge, U.S. District Judge Maxine Chesney, has already granted preliminary approval “preliminarily.”

The judge praised the settlement and advised counsel they had done a good job. She did request changes and clarifications including an amended settlement schedule to provide her with time to consider a revised version. She advised parties she would most likely allow the deal to move forward within the week.

David Berlanga, plaintiff, filed suit in January 2017 alleging wage and hour claims and listing four California energy facilities as Defendants in the case:

·      Shell Pipeline Co. LP’s terminal facility in Carson

·      Shell subsidiary Equilon Enterprises LLC’s oil refinery in Martinez

·      CRI Catalyst Co LP’s production facilities in Martinez

·      CRI Catalyst Co LP’s production facilities in Pittsburg

Allegedly, the companies did not provide rest breaks free of job duties or accurate wage statements to employees. Berlanga filed claims under the California Private Attorneys General Act as well as the state’s Unfair Competition Law. He was seeking back wages, statutory penalties, attorneys’ fees and an updated workplace policy in compliance with the law.

The class would include plant operators (since January 2013) who have been required to keep their radios on or respond to calls during their rest breaks that are mandated by state labor law. According to the law, employers must relinquish control over how employees spend time during breaks and employees must be relieved of all their job duties – including the obligation to remain on call.

The settlement is the result of a private mediation in April and will include up to $1.9 in attorney’s fees (or a quarter of the common fund). And incentive award of $7,500 for each of the six class representatives is also sought although the judge indicated this may be too high.

If you have questions about California mandated rest breaks or if you are not receiving accurate wage statements as required by law, please get in touch with one of the experienced California employment law attorneys at Blumenthal Nordrehaug Bhowmik De Blouw LLP.

San Diego-Based Tarr Inc. Settles Pregnancy Discrimination Lawsuit

Tarr Inc. and Zenith LLC have agreed to pay $50,000 to victims in a pregnancy discrimination lawsuit. In addition to the monetary settlement, they have agreed to offer other relief in accordance with the terms of the settlement agreement they entered with the U.S. Equal Employment Opportunity Commission (EEOC).

According to the lawsuit’s court documents, the San-Diego based company known as Zenith LLC fired a female employee just days after she advised them that she was pregnant. And this was not the only time they company exhibited outright pregnancy discrimination against an employee. They also allegedly refused to allow a different employee to return to her position with the company after taking maternity leave.

The dietary supplement company out of San Diego, California faced allegations that they were in violation of Title VII of the Civil Rights Act of 1964 (as amended by the Pregnancy Discrimination Act outlawing discrimination on the basis of pregnancy, childbirth or other medical conditions related to either). The suit was filed in the U.S. District Court for the Southern District of California after they were unable to reach a pre-litigation settlement agreement through conciliation.

When employers perceive pregnancy and motherhood as being incompatible with work and the workplace it places women at a great disadvantage. For many workers experiencing the thrilling, but nerve-wracking time during pregnancy, being fired from a job while pregnant (especially explicitly for being pregnant) is like a nightmare coming true. While pregnancy discrimination is unarguably illegal, it is a prevalent problem in today’s workplaces. When an employer exhibits this type of discrimination, they are breaking the law and victims deserve compensation.

If you are pregnant or were recently pregnant and you experienced discrimination in the workplace due to your pregnancy, please get in touch with the experienced California employment law attorneys at Blumenthal Nordrehaug Bhowmik De Blouw LLP.

Temecula Nail Salon Faces $1.2M Fine for California Wage Violations

Employees of a Temecula, California nail salon called Young’s Nail Spa were listed as “independent contractors” so the salon owners could avoid payment of overtime or required meal and rest breaks during longer shifts. The salon faces a file of over $1.2 million for misclassification of workers, violation of wage and hour law, failure to pay overtime and provide required meal and rest breaks.

The salon is located on Margarita Road in Temecula and was under investigation by the California Department of Industrial Relations due to complaints about wage theft and other unlawful practices. In the course of the investigation, numerous irregularities were discovered. One of the most problematic was the shifts that Young’s Nail Spa employees were required to complete. Workers were spending 9 ½ to 10-hour days on the job. They were not provided meal or rest breaks. The Labor Commissioner said this was an attempt to get around overtime obligations through misclassification of employees as independent contractors.

In addition to denying workers their rightful pay, misclassification also gives employers an unfair advantage over competing, law-abiding businesses. According to California law, employers who provide their workers with less than minimum wage will be held responsible for paying the wages owed plus an equivalent amount in liquidated damages and interest when they are caught.

During the course of the investigation, auditors from the state went through 40 months of business records before determining that the salon engaged in misclassification and additional forms of wage theft. Citations totaled $670,040 for worker reimbursement and $572,187 in civil penalties.

If you have questions about wage and hour law or if you feel that you have been misclassified on the job, please get in touch with one of the experienced employment law attorneys at Blumenthal Nordrehaug Bhowmik De Blouw LLP.

California Contractor Fined $1.9M in Response to Wage Theft Claims

Fullerton Pacific Interiors Inc., a California drywall contractor, was filed $1.9 million by California’s Division of Labor Standards Enforcement for failing to allow rest periods for workers (and other wage violations). The violations allegedly occurred on 26 different construction projects in different locations throughout Southern California.

The fine was handed down from California’s Division of Labor Standards Enforcement, a.k.a. the Labor Commissioner’s Office – a part of the California Department of Industrial Relations. The fine was processed because the California drywall company failed to properly compensate almost 500 workers for rest periods as required by state and federal labor law. During the course of investigation, the division also found that almost 300 workers were not paid for overtime hours and almost 30 workers were paid less than minimum wage.

From the summer of 2014 through the summer of 2016, Fullerton Pacific Interiors Inc. was under contract to perform drywall work at a number of recreation centers: hotels, casinos, etc. All were located in three California counties: Los Angeles, Orange and San Bernardino. The Labor Commissioner noted that many contractors who embrace unscrupulous methods may try to obscure wage theft by providing workers with pay on a flat rate basis rather than an hourly rate. Yet a daily or any other flat rate system of pay does not override minimum wage and overtime requirements as defined by law.

According to the findings of the investigation, Fullerton workers were completing taping and drywall installation at the work sites. They were paid a daily rate that did not consider their overtime hours on the job. They were offered a 30-minute meal period, but no rest breaks throughout the day.

The fine accounts for:

·      $1,892,279 payable to workers (with $798,664 for rest period violations, $386,685 for unpaid overtime, and $692,500 for wage statement violations)

·      $72,400 civil penalty

·      Workers that were not paid minimum age were owed a total of $14,431 unpaid wages, liquidated damages, and waiting time penalties

If you have questions about unpaid overtime or if you are not receiving meal and rest breaks on the job in accordance with state and federal labor law, please get in touch with one of the experienced California employment law attorneys at Blumenthal Nordrehaug Bhowmik De Blouw LLP.

Employee Who Went Viral Flipping Off Trump Loses Unfair Firing Claim

Juli Briskman, a marketing analyst, claims she was illegally forced to quit her job because a picture of her flipping off President Trump’s motorcade when viral. A Virginia state judge tossed her claim of unfair firing but preserved her second claim that her former employer cut her severance pay short.

Judge Penney Azcarate granted Briskman’s former employer, Akima LLC’s, motion for a demurrer on Briskman’s unfair termination claim from the bench. The Judge also rejected the company’s claims that it did not actually agree to pay Briskman four weeks severance as she claims.

Briskman’s legal representation stated that the judge outlined where there were deficiencies in the plaintiff’s argument that she qualifies for a public-policy exemption from at-will employment doctrine of the state of Virginia. Briskman and her legal representation see it as a chance to shore up the claim. Briskman’s attorneys plan to take the opportunity to review the complaint, and make amendments so the complaint may satisfy the court.

According to the original complaint, filed by Briskman in April, she was forced to quit her job because the company feared the notoriety caused by the viral photo could cost Akima LLC government contracts. The infamous photo was taken by a photographer in October. Briskman was on a weekend bike ride when President Trump’s motorcade went by and she flipped it off. At first, Briskman was not identified, but later she updated her social media profiles with the image. The picture was featured a few days later on both The Tonight Show and Jimmy Fallon. At this point, Akima forced Briskman to resign for fear of negative reprisals against the company due to the notoriety of the photo.

Akima is a private company in Virginia where state law allows businesses to fire most employees for any reason. But Briskman argues that the company was in violation of the state’s at-will employment doctrine because Akima fired her as a result of fear that they could face retaliation and lose government contracts. As it would be illegal for the government to punish the company for an employee’s political views, Briskman claims that the company was barred from firing her for the situation. Briskman also claims Akima breached her employment contract when they promised four weeks of severance upon her resignation and then only paid her for two.

If you have questions about wrongful termination or other need to discuss other unfair firing claims, please get in touch with one of the experienced California employment law attorneys at Blumenthal Nordrehaug Bhowmik De Blouw LLP.

$3 Million Unpaid Overtime Class Action Settlement from JP Morgan

In a recent unpaid overtime class action settlement, JP Morgan Chase & Co. will pay $3 million to class members. The settlement will end claims made in a class action lawsuit alleging that the company failed to provide mortgage bankers with overtime compensation.

The unpaid overtime settlement was approved by Illinois federal judge Susan Cox. Under the settlement agreement, the class of close to 2,000 bankers will receive compensation for unpaid overtime in case. The settlement covers $1 million in attorneys fees and an enhancement award for the lead plaintiff totaling $1,000. It will also cover appropriate administrative and court costs.

Mortgage bankers in the class claim the company did not compensate them for overtime between April 5th, 2014 and November 30th, 2017. The representatives claim that the company’s overtime payment practice was in violation of both state and federal labor laws.

35% of the qualifying class members in the case submitted claims for settlement compensation. According to the settlement terms, JP Morgan Chase keeps any settlement funds left unclaimed. The judge approved of the deal, noting that it seemed like a good deal from the perspective of the court, and that given the allegations that were made in the case and the defense presented, it was a good resolution. She also found it significant that no qualifying banker objected to the settlement.

According to allegations, JP Morgan Chase used a system of base pay plus commissions for their mortgage bankers. Internally the pay structure was referred to as “incentive pay.” Yet bankers allege the system did not account for the fact that many of them worked over 40 hours per week. They claim they were not compensated for time spent working outside of the normal, full time, 40-hour work week.

Bankers were allegedly required to keep track of their hours by recording them in the company’s computer system. They were also required to record an unpaid lunch break (that many claim they spent working). Allegations were made that the system as it was set up did not allow mortgage bankers to record time spent working during the evening. Additional allegations were made that the company failed to pay earned commissions within a 13-day window as required by Illinois state law.

If you have questions about overtime, overtime compensation or how overtime payment should be calculated, please get in touch with one of the experienced California employment law attorneys at Blumenthal Nordrehaug Bhowmik De Blouw LLP.