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About The Lawsuit
CASE BACKGROUND
On October 13, 2016, a Class Action lawsuit was filed against Paris Baguette USA, Inc. in the Los Angeles Superior Court by a former employee (the “Class Representative”) on behalf of the proposed Class.
The lawsuit is proposed as a class action on behalf of all current and former salaried employees of Paris Baguette who worked in California, at any time during the Class Period, who were classified as exempt, and earned less than $100,000 annually. The proposed Class does not include any person who previously settled or released any of the claims covered by the Settlement described below, or any other person who previously was paid or received awards through civil or administrative actions for the claims covered by the Settlement. (the “proposed Class”).
In the lawsuit, the Class Representative alleges that Paris Baguette gave many of its former and current salaried employees the title of “Manager”, and other similar descriptions, and claimed that they were not entitled to (exempt from) rest breaks, meal breaks, or overtime wages. California law states that all employees are entitled to rest breaks, meal breaks, or overtime wages UNLESS they fall into the “Executive” or “Administrative” exemptions.
To assert the Executive Exemption, Paris Baguette must prove ALL of the following concerning the employee: (1) They were paid at least twice the minimum wage for all hours worked: (2) They managed the business or department within the business; (3) They Customarily and Regularly directed the work of two or more full-time employees; (4) They had real input in hiring and firing; (5) They Customarily and Regularly exercise discretion and independent judgment; AND (6) They spend at least 50 percent of their time doing exempt work (as distinguished from cleaning, stocking, selling, baking, etc.)
To assert the Administrative Exemption, Paris Baguette must prove ALL of the following concerning the employee: (1) They were paid at least twice the minimum wage for all hours worked: (2) They performed office or non-manual work directly related to the management policies or general business operations; (3) They Regularly and Directly assist the proprietor or another exempt employee OR perform technical work OR execute special assignments and tasks under general supervision; (4) They Customarily and Regularly exercise discretion and independent judgment; AND (5) They spend at least 50 percent of their time doing exempt work (as distinguished from cleaning, stocking, selling, baking, etc.)
In the lawsuit, the Class Representative contends that he and his fellow salaried employees were improperly classified by Paris Baguette as they do not meet all of the requirements of either the “Executive” or “Administrative” exemptions.
CURRENT STATUS: We are pleased to report that on April 22, 2021, the Los Angeles Superior Court reviewed and issued an Order of Final Approval of the Class-PAGA Settlement and entered Judgment thereon. Previously, a Court approved Notice of the settlement went out to all 238 Class Members. Not a single Class Member opted out of, or objected to, the Settlement. Pursuant to the terms of the Settlement, Class Members are currently scheduled to receive their respective settlement checks by the third week of August, 2021. If you are a Class Member and do not receive your settlement check, please contact the settlement administrator, CPT Group, toll-free at 1-888-671-0747.
Copies of the Order of Final Approval of the Class-PAGA Settlement and Judgment can be accessed below.
PARIS BAGUETTE'S LABOR LAW VIOLATIONS
In the lawsuit, the Class Representative alleges that PARIS BAGUETTE committed unlawful business practices in the State of California by:
1. Not paying the proposed class members all of their earned minimum wages and overtime wages (by not recording all time worked, etc.)
2. Not paying all earned overtime for shifts worked in excess of 8 hours in a day or 40 hours in seven-day period);
3. Not timely paying all earned wages
4. Not timely paying all earned wages when the person’s employment ended;
5. Not providing accurate and lawful wage statements;
6. Not authorizing and permitting 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;
7. Not providing 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;
8. Converting the wages of the proposed class members who are the rightful owners of said property.
9. Engaging in unfair business practices
10. Not providing the proposed class members the required California Wage Theft Prevention Notice.
Further, it is alleged that Defendant’s violations of California labor law warrant the imposition of penalties against the employer pursuant to the Private Attorney General Act
THE LAW
CALIFORNIA LAW REQUIRES PARIS BAGUETTE TO ALLOW YOU TO TAKE AN UNINTERRUPTED PAID TEN CONSECUTIVE MINUTE REST PERIOD WHEN YOU WORK MORE THAN 3.5 HOURS IN A SHIFT. YOU GET A SECOND REST PERIOD IF YOU WORK MORE THAN 6 HOURS, AND A THIRD 10 MINUTE REST PERIOD IF YOU WORK MORE THAN 10 HOURS.
REST PERIOD: (A) 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.
(B) 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.
CALIFORNIA LAW REQUIRES PARIS BAGUETTE TO PROVIDE YOU A THIRTY CONSECUTIVE MINUTE, UNINTERRUPTED MEAL PERIOD WHEN YOU WORK MORE THAN 5 HOURS IN A SHIFT. THEY CANNOT ASK YOU TO WAIVE THIS RIGHT, ALTHOUGH YOU HAVE THE RIGHT TO WAIVE THE MEAL PERIOD IF YOU WORK NO MORE THAN 6 HOURS IN YOUR SHIFT. YOU ARE ENTITLED TO A SECOND THIRTY MINUTE UNINTERRUPTED MEAL PERIOD WHEN YOU WORK MORE THAN 10 HOURS IN A SHIFT.
MEAL PERIOD: (A) 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.
(B) 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.
CALIFORNIA LAW REQUIRES PARIS BAGUETTE TO PAY YOU 1 AND 1/2 TIMES YOUR REGULAR RATE OF PAY FOR EACH SHIFT YOU WORK IN EXCESS OF 8 HOURS IN A GIVEN DAY OR 40 HOURS IN A GIVEN WEEK. FURTHER, PARIS BAGUETTE IS REQUIRED TO PAY YOU TWICE YOUR REGULAR RATE OF PAY FOR EACH SHIFT YOU WORK IN EXCESS OF 12 HOURS IN A GIVEN DAY OR IN EXCESS OF 8 HOURS ON A SEVENTH CONSECUTIVE DAY OF WORK.
OVERTIME: LC 510. (a) 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.
CALIFORNIA LAW REQUIRES PARIS BAGUETTE TO PAY ITS EMPLOYEES ALL OF THEIR EARNED WAGES ON THE DAY THEY ARE DISCHARGED OR, IF THE EMPLOYEE QUITS, WITHIN 72 HOURS.
LAST PAYCHECK: LC 201. (a) If an employer discharges an employee, the wages earned and unpaid at the time of discharge are due and payable immediately.
LC 202. (a) 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.
LC 203. If an employer willfully fails to pay, without abatement or reduction, in accordance with Sections 201, 201.5, 202, and 205.5, 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 therefor is commenced; but the wages shall not continue for more than 30 days. (Source: Labor Code)
CALIFORNIA LAW REQUIRES PARIS BAGUETTE TO PROVIDE ITS EMPLOYEES ACCURATE WAGES STATEMENTS WHICH PROVIDE THE STATUTORILY REQUIRED INFORMATION.
WAGE STATEMENT: LC 226. (a) 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.