ANTHONY W. ISHII, Senior District Judge.
Jerrod Finder ("Plaintiff") is a former employee of Leprino Foods Company or Leprino Foods Dairy Products Company ("Defendants"). He alleges that he was not provided meal breaks as required by California law. Plaintiff originally filed suit in state court. Defendants removed the case to federal court, asserting subject matter jurisdiction under the Class Action Fairness Act ("CAFA"). Defendants filed a motion on the pleadings. Doc. 6. Plaintiff's claims were dismissed without prejudice and with leave to amend. Doc. 20. Plaintiff's operative complaint is the first amended complaint and contains five causes of action: (1) failure to provide meal periods in violation of California Labor Code §§ 512 and 226.7, (2) failure to provide accurate wage statements in violation of California Labor Code §§ 226 and 226.6, (3) failure to promptly pay wages due in violation of California Labor Code §§ 201 and 202, (4) violation of California Business & Professions Code § 17200, and (5) enforcement of California Labor Code provisions under the Private Attorney Generals Act ("PAGA"). Doc. 24. Defendants have filed a motion to dismiss. Doc. 25. Plaintiff opposes the motion. Doc. 28.
Under Federal Rule of Civil Procedure 12(b)(6), a claim may be dismissed because of the plaintiff's "failure to state a claim upon which relief can be granted." Fed. R. Civ. P. 12(b)(6). A dismissal under Rule 12(b)(6) may be based on the lack of a cognizable legal theory or on the absence of sufficient facts alleged under a cognizable legal theory.
Plaintiff's first cause of action alleges he was not provided a second meal period when he worked long shifts. California law requires that employers give employees meal breaks after a certain number of hours on the job. "An employer may not employ an employee for a work period of more than 10 hours per day without providing the employee with a second meal period of not less than 30 minutes, except that if the total hours worked is no more than 12 hours, the second meal period may be waived by mutual consent of the employer and the employee only if the first meal period was not waived." Cal. Labor Code § 512(a). "If an employer fails to provide an employee a meal or rest or recovery period in accordance with a state law, including, but not limited to, an applicable statute or applicable regulation, standard, or order of the Industrial Welfare Commission, the Occupational Safety and Health Standards Board, or the Division of Occupational Safety and Health, the employer shall pay the employee one additional hour of pay at the employee's regular rate of compensation for each workday that the meal or rest or recovery period is not provided." Cal. Labor Code § 226.7(c).
Plaintiffs are required to provide factual bases for their claims.
Plaintiff's second cause of action alleges that Defendants did not provide accurate information on wage statements. California law requires specific information to be included: "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 . . .(3) the number of piece-rate units earned and any applicable piece rate if the employee is paid on a piece-rate basis, (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 only the last four digits of his or her social security number or an employee identification number other than a social security number, (8) the name and address of the legal entity that is 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 . . ." Cal. Labor Code § 226(a). Plaintiff alleges the wage statements did not reflect that employees "had earned an additional hour of pay for meal periods not provided and fail[ed] to provide the name of the legal entity." Doc. 24, 12:20-22. Defendants argue that Plaintiff "First, as with his meal period claim, this claim lacks sufficient facts to state a cause of action. He does not allege any facts demonstrating that Leprino `knowingly and intentionally' failed to provide required information on his wage statements. Second, Plaintiff fails to allege any injury from his receipt of supposedly inaccurate wage statements. Third, as a matter of law, missed meal periods cannot support a claim for failure to provide accurate wage statements." Doc. 25, 7:15-20.
Defendant argues that the amount an employer is required to pay an employee under Section 226.7 for missed meal periods need not be reflected on wage statements under Section 226. Doc. 29, 6:18-10:7. This is an issue that was ruled upon in the prior order regarding granting the earlier motion on the pleadings; as stated before, the federal district courts are split but this court finds the stronger argument to be that the premium wages/penalties must be documented on the wage statements. Doc. 20. In this motion, Defendants have provided neither new case law nor argument persuasive enough for grant of reconsideration.
Defendant alleges there are insufficient facts to explain what inaccurate or incomplete information was provided. Regarding the improper name, Plaintiff states "the wage statements simply state `Leprino Foods.' The proper legal name should be `Leprino Foods Company' or `Leprino Foods Dairy Products Company' resulting in Plaintiff not being able to promptly and easily determine from the wage statement the proper legal entity." Doc. 24, 5:20-24. Plaintiff explains that "it is undisputed there are two separate entities (Leprino Foods company and Leprino Foods Dairy Products Company) which have failed to set forth the legal entity that is the employer." Doc. 28, 17:5-8. The Ninth Circuit has explained that slightly truncating an employer's name does not violate Section 226(a).
Defendants also argue that "a plaintiff must allege a `knowing and intentional' failure to provide the information required under Section 226(a), simply making the conclusory allegation that Leprino knowingly failed to comply, as Plaintiff does here, is insufficient to support the claim." Doc. 25, 8:4-6. Defendants point to a Northern District opinion that found "Plaintiffs have not alleged that Wal-Mart knowingly and intentionally failed to comply with § 226. Although the TAC generally alleges that `violations of the law were committed knowingly and wilfully' earlier in the TAC, plaintiffs fail to support this conclusory allegation with factual support."
Defendants argue that Plaintiff has failed to allege an injury as "Plaintiff's allegation that the wage statement is incorrect due to the failure to list amounts not actually paid but allegedly owed is insufficient." Doc. 25, 8:20-21. Section 226 defines injury as follows:
Cal. Labor Code § 226(e)(2). Plaintiff has alleged that the employer name was misleading and that Defendants did not show the extra hour of pay for meal periods not provided. The wage statements must accurately reflect "all applicable hourly rates in effect during the pay period and the corresponding number of hours worked at each hourly rate." Cal. Labor Code § 226(a)(9). An employee is deemed to suffer an injury if the wage statement does not accurately provide that information and the employee can not readily determine the truth of the matter. Employee confusion over the correctness of his/her pay is sufficient to constitute an injury. See
Plaintiff also cites to Section 226.6 which states "Any employer who knowingly and intentionally violates the provisions of Section 226, or any officer, agent, employee, fiduciary, or other person who has the control, receipt, custody, or disposal of, or pays, the wages due any employee, and who knowingly and intentionally participates or aids in the violation of any provision of Section 226 is guilty of a misdemeanor and, upon conviction thereof, shall be fined not more than one thousand dollars ($1,000) or be imprisoned not to exceed one year, or both, at the discretion of the court. That fine or imprisonment, or both, shall be in addition to any other penalty provided by law." Cal. Labor Code § 226.6. This is clearly a criminal statute and Plaintiff does not have standing to enforce this provision. See
Plaintiff's third cause of action alleges that Defendants did not pay him his meal period premium wages/penalties in a timely manner when he left Defendants' employ. California law requires wages to be paid promptly at an employee's separation. "If an employer discharges an employee, the wages earned and unpaid at the time of discharge are due and payable immediately." Cal. Labor Code § 201(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 . . ." Cal. Labor Code § 202(a). "If an employer willfully fails to pay, without abatement or reduction, in accordance with Sections 201, 201.3, 201.5, 201.9, 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 . . ." Cal. Labor Code § 203(a). Defendants assert that "As a matter of law, however, the meal period premiums owed under Section 226.7 are not wages within the meaning of the statute, which is concerned only with the compensation due to the employee for his labor." Doc. 25, 13:19-22. As with meal periods and wage statements discussed above, this is an issue that was ruled upon in the prior order regarding granting the earlier motion on the pleadings; the federal district courts are split but this court finds the stronger argument to be that the premium wages/penalties must be paid within the framework of Sections 201 and 202. Doc. 20. In this motion, Defendants have provided neither new case law nor argument persuasive enough for grant of reconsideration.
Plaintiff's fourth and fifth claims are completely dependent on the substantive California Labor Code claims. As Plaintiff has plead meal period, wage statement, and waiting time violations, he has stated claims for these causes of action as well.
Defendants point out that Plaintiff's PAGA claim cites to Cal. Labor Code § 226.3 which states "Any employer who violates subdivision (a) of Section 226 shall be subject to a civil penalty in the amount of two hundred fifty dollars ($250) per employee per violation in an initial citation and one thousand dollars ($1,000) per employee for each violation in a subsequent citation, for which the employer fails to provide the employee a wage deduction statement or fails to keep the records required in subdivision (a) of Section 226 . . ." While Section 226(a) requires that employers provide an accurate wage statement, Section 226.3 only mandates a penalty for failure to provide any wage deduction statement or failure to keep records. See
Defendants' motion to dismiss is GRANTED in part and DENIED in part. The part of Plaintiff's wage statement claim based on Cal. Labor Code § 226.6 is DISMISSED WITH PREJUDICE. The part of Plaintiff's PAGA claim based on Cal. Labor Code § 226.3 is DISMISSED WITH PREJUDICE.
Plaintiff may, but is not required to, file a second amended complaint by January 26, 2016. If Plaintiff does not file a second amended complaint, Defendants' answer is due by February 16, 2016.
IT IS SO ORDERED.