RUVOLO, P. J. —
Appellants Michael Lampe and Karen McNair appeal the trial court's order denying class certification of their wage and hour claims against Queen of the Valley Medical Center (QVMC). The trial court concluded that individualized issues predominated and the claims could not be proven efficiently as a class. We conclude substantial evidence supports the trial court's findings and it did not abuse its discretion in denying class certification. We affirm.
QVMC is a full-service hospital with 94 departments. Appellants Lampe and McNair are nurses employed at QVMC. McNair previously worked eight-hour shifts as an operating room nurse, and in 2011 she became a relief charge nurse. As a relief charge nurse, she determines when to provide meal breaks for the nurses she is supervising. Lampe works 12-hour shifts in the mother-child services department.
Beginning in 2011, appellants filed multiple versions of their complaint in this action in three different counties. The current complaint is the fourth amended class action complaint filed in Napa County, which alleges seven causes of action: (1) violation of Business and Professions Code section 17200
Appellants filed a motion to certify an "overtime class," a "meal break class," and a "wage statement" class. The overtime class consisted of two subclasses: (1) employees who earned overtime bonuses where QVMC failed to properly calculate their regular rate of pay, and (2) alternative work schedule (AWS) employees who were asked to leave work between the eighth and 12th hour of their shift who were not paid overtime wages.
Appellants alleged QVMC has a "company-wide policy of instituting and implementing unlawful wage-and-hour policies." They allege QVMC does not properly compensate AWS employees who work short shifts as required by California Code of Regulations, title 8, section 11050, subdivision 3(B)(2) (Industrial Welfare Commission wage order No. 5-2001, subd. (B)(2)). They contend that QVMC has no written policy to inform employees that they are entitled to overtime if they are flexed off their shift. Appellants argue QVMC failed to properly calculate employees' regular rate of pay. Appellants also assert that QVMC required employees to waive one of their two meal periods if they worked a 12-hour shift.
In support of their motion, appellants submitted deposition transcripts from the prior named plaintiffs, Concepcion Vinas and Editha Asuncion, along with deposition excerpts from the director of human resources, a payroll coordinator, three QVMC nurses with roles as supervisors or managers, and two experts. In his declaration, Lampe stated he was not aware he was entitled to a short-shift premium. He also stated he is not provided a second meal period when he works over a 12-hour shift.
QVMC filed an opposition to the class certification motion, arguing that appellants had failed to submit substantial evidence to support their theories, and pointing out that appellants only submitted their own declarations and offered no testimony from any proposed class members. QVMC argued that
Included with its opposition, QVMC submitted evidence to contradict Lampe's declaration. Lampe signed an AWS agreement which stated QVMC provides short-shift premiums if he worked more than eight hours but less than a full 12-hour shift. The short-shift policy is also contained in the QVMC policy manual. Putative class members provided declarations that they were aware of the short-shift policy, including the former named plaintiffs, Vinas and Asuncion. Fourteen putative class members declared they have never been required to leave work after eight hours on an AWS shift, and employees would often volunteer to leave early where a short-shift premium is not required. Twenty-five QVMC employees testified they were aware they were entitled to a meal break if they worked more than five hours and they were provided with their meal breaks. They were aware they were entitled to second a meal break if they worked more than 10 hours and they were offered that meal break. Respondent identified the various different and unique ways each department scheduled meal breaks.
QVMC produced evidence that it has an AWS and written short-shift policy that is included with each employee's AWS agreement. The QVMC Human Resources Policy Manual (QVMC HR Manual) policy No. 335.1 states: "Employees will receive a short-shift payment if provided more than eight (8) hours, but less than twelve (12) hours of work on a regularly scheduled workday. QVMC will pay one and one-half times their regular rate for all hours worked in excess of eight hours on that regularly scheduled day." Lampe also signed an AWS agreement for 12-hour shifts.
QVMC explained it does not have a separate pay code for short-shift premiums; it shows up as overtime in the system, or on the pay stub. To determine if an employee was being paid a short-shift premium requires a review of the individual edit sheets, if available.
QVMC's meal break policy is to provide 30 minutes for each day of work over 5 hours, and a second meal break of at least 30 minutes for each day of work over 10 hours. The policy is the first meal break should be taken by the end of the fifth hour of work. An employee that works more than 10, but less than 12 hours in a workday, may waive one of his or her two meal periods. QVMC does not maintain centralized electronic records of employees who have signed or revoked meal period waivers. This information requires a person-by-person review of employee files.
Lampe voluntarily signed a meal period waiver. In the waiver, he requested to take his first meal break at the end of his sixth hour or later, and to waive the second meal break. McNair typically works an eight-hour shift, so she did not sign a meal break waiver.
McNair testified that when she is the relief charge nurse, if a nurse refuses to take a break, she instructs them to put "no break" on their timesheet so they can be paid a premium for the missed break.
After conducting a hearing, the trial court issued an order denying appellants' motion for class certification. The trial court cited Duran v. U.S. Bank National Assn. (2014) 59 Cal.4th 1, 28 [172 Cal.Rptr.3d 371, 325 P.3d 916] (Duran) for the proposition that a class action may be maintained if there is "`an ascertainable class and a well-defined community of interest among the class members.' [Citations.] As part of the community of interest requirement, the party seeking certification must show that issues of law or fact common to the class predominate." (Ibid.) The ultimate issue for predominance is whether the common issues are so numerous and substantial that maintenance of a class action is advantageous to the judicial process and to the litigants. (Ibid.)
The trial court noted appellants sought to certify three classes and three subclasses and analyzed each in turn.
Class 1, the overtime class consisted of nonexempt 12-hour shift employees (from November 2007 to certification) and nonexempt non-12-hour shift employees (from February 2010 to certification). This could include employees from 94 departments who work full time, part time, per diem, and work every type of shift (day, night, on call). The potential class included up to 358 different positions, including nurses, therapists, secretaries, clerks, gardeners, fitness instructors, social workers, transcriptionists, billers, and cooks.
Within the first overtime subclass were employees who earned nondiscretionary bonuses. Within the second subclass were employees who worked AWS who were not paid overtime when they were required to leave work between the eighth and 12th hour of their shift.
Although the first and second subclass are not alleged in the operative complaint, the court nevertheless addressed the subclasses on the merits. The court found for the first subclass: "There is no evidence in the record that
For the second subclass, appellants contend employees were not paid when they flexed off their shift between the eighth and 12th hour of work. QVMC stated hospital policy was to pay the employee using the regular overtime code. The hospital does not record whether a short-shift premium is paid because it is recorded as overtime. Because this claim required individualized assessment of each employee, the court concluded this claim could not be proven efficiently as a class.
Class 2, the meal break class, consisted of 12-hour shift employees. This class included employees in 94 departments working in various types of positions similar to class 1. The third subclass consisted of employees who signed meal waivers for the second meal break and worked over a 12-hour shift. The third subclass was not identified in appellants' complaint.
The trial court found that appellants had not supported their claims regarding meal periods with anything other than their own testimony. "Numerous employees have declared that they have always been able to take their full 30-minute meal periods, or that if they missed a meal period, they may request and have received a meal period premium." Appellant McNair had not signed a meal period waiver because she works an eight-hour shift, and appellant Lampe signed a waiver to voluntarily waive his meal break. The trial court concluded neither appellant is typical of the class they seek to certify.
The evidence presented disclosed a great variety in how meal periods are scheduled in different departments. Appellant McNair was responsible for scheduling meal breaks for the nurses in her unit which created a conflict between proposed members of the class. The trial court concluded that with the meal period claims, every member of the class would be required to litigate numerous and substantial questions regarding his or her right to recover, which depended on the department the employee worked in, the shift she or he had, whether a meal waiver had been signed, and the circumstances leading up to any meal waiver. "The difficulty in managing the individual issues renders class certification inappropriate as to the Meal Break Class."
Class 3, the wage statement class, consisted of employees who were provided a pay stub. "As class certification is not appropriate for the primary
"`[E]ach member must not be required to individually litigate numerous and substantial questions to determine his [or her] right to recover following the class judgment....'" (Washington Mutual Bank v. Superior Court (2001) 24 Cal.4th 906, 913 [103 Cal.Rptr.2d 320, 15 P.3d 1071].) "`[T]he issues which may be jointly tried, when compared with those requiring separate adjudication, must be sufficiently numerous and substantial to make the class action advantageous to the judicial process and to the litigants.'" (Id. at pp. 913-914.)
The trial court needs "to carefully weigh the respective benefits and burdens of a class action and to permit its maintenance only where substantial benefits will be accrued by both litigants and the courts alike." (Reyes v. Board of Supervisors (1987) 196 Cal.App.3d 1263, 1275 [242 Cal.Rptr. 339].) A trial court's ruling on a motion for class certification is reviewed for an abuse of discretion. (Sav-On, supra, 34 Cal.4th at p. 326.) Trial courts "`are ideally situated to evaluate the efficiencies and practicalities of permitting group action'" and therefore are "`afforded great discretion'" in evaluating the relevant factors and in ruling on a class certification motion. (Ibid.)
Appellants sought to certify two overtime subclasses: (1) employees who did not have their regular rate of pay correctly calculated, and (2) AWS employees who were not paid overtime when they were required to leave work between the eighth and 12th hour of their shift.
Initially, we note the first and second subclasses are not identified in the operative complaint. The fourth amended complaint contains no AWS allegations. The trial court ordered the AWS allegations in the second amended complaint stricken. When appellants' counsel again included AWS allegations in the third amended complaint, the court sanctioned counsel $10,000 for reasserting the stricken claims. The sanctions were the subject of an appeal to this court that was affirmed in an unpublished decision, Vinas v. Queen of the Valley Medical Center (Oct. 20, 2016, A143541).
The lack of connection between the complaint and the classes appellants seek to certify provides a basis for denial of the certification motion. (See Jones v. Farmers Ins. Exchange (2013) 221 Cal.App.4th 986, 999 [164 Cal.Rptr.3d 633] [court can deny class certification or strike certification motion where the plaintiffs seek certification that is beyond the scope of the
Appellants argue QVMC failed to include all required amounts in the regular rate of pay before calculating overtime.
To support their allegations, appellants submitted an expert declaration from Dr. Richard Drogin, Ph.D., a statistician. He evaluated Lampe's pay records over 195 pay periods, and McNair's over 165 pay periods. He determined that the regular rate was not properly calculated for 130 out of 360 pay periods resulting in underpayment of $10,767 to Lampe, and $7,156 to McNair. Although Dr. Drogin conducted an analysis of 75 employees regarding meal breaks, he provided no analysis on the regular rate payment for any employees except Lampe and McNair.
QVMC argues appellants failed to adequately identify the legal claim they seek to pursue on behalf of this class. Appellants only list the various pay categories and claim some of the bonus or incentive categories were not included in the regular rate calculation.
For the regular rate subclass, the trial court found there was "no evidence in the record that clearly shows what items were or were not included in the regular rate calculation, or any details as to why any of the items should or should not be included." Dr. Drogin did not identify what items were wrongly included or excluded. This expert listed bonus categories, but does not link them to appellants or other putative class members. The trial court found that appellants had not shown if they or other members of the class received or did not receive any of the listed pay codes.
Additionally, the trial court found appellants "failed to articulate what group issues predominate. The vague assertion that the regular rate was miscalculated without any specific detail as to what pay codes were or were not included is insufficient." Appellants simply provided pages of what appear to be QVMC pay code sheets effective in 2007 and 2009. Respondent
We agree and conclude the trial court properly denied certification of the regular rate subclass.
Appellants argue QVMC did not provide overtime pay to employees that it "flexed off" between the eighth and 12th hour of their AWS shifts. They argue employees were not paid if they volunteered to leave early, and employees were not informed that if they did not volunteer they would be paid a short-shift premium.
QVMC HR Manual policy No. 335.1 states: "Employees will receive a short-shift payment if provided more than eight (8) hours, but less than twelve (12) hours of work on a regularly scheduled workday. QVMC will pay one and one-half times their regular rate for all hours worked in excess of eight hours on that regularly scheduled day." The short-shift premium is not paid "if the full shift is not worked due to the employee's actions." As an
Appellants submitted an expert declaration from Sean Berger, a consultant on data collection and analysis. Berger analyzed data provided to him by appellants' counsel to determine how often Lampe and other employees worked between 8.25 and 11.75 hours. He analyzed 981 workdays between 2007 to 2014 for Lampe and found he worked between 8.25 and 11.75 hours on 20 days (2.04 percent of the time). He evaluated a sample class of 75 employees and found 28.03 percent of the time they worked between 8.25 and 11.75 hours.
As noted earlier, QVMC has a policy to pay employees a short-shift premium if they worked more than eight hours, but less than 12 hours. Appellants presented no evidence QVMC discouraged employees from seeking a short-shift premium. QVMC, however, presented evidence that the former named plaintiffs, Vinas and Asuncion, provided testimony that they were aware of the short-shift policy and were paid short-shift premiums. Respondent also submitted the written policies provided to employees. QVMC's payroll system did not have pay code for short-shift premiums but used the overtime pay code.
In support of their claims, appellants rely on an unpublished federal district court decision, Escano v. Kindred Healthcare Operating Co., Inc. (C.D.Cal., Mar. 5, 2013, No. CV 09-04778 DDP (CTX)) 2013 WL 816146 (Escano). Escano is not binding on this court and is readily distinguishable. The Escano plaintiffs brought wage and hour claims against hospitals owned by Kindred Healthcare Operating Group, Inc. (Kindred). (Id. at p. *1.) The plaintiffs raised the same AWS claim raised here: that employees who left work between the eighth and 12th hour of their shift were not paid their short-shift premium. (Id. at p. *2.) The plaintiffs presented evidence that Kindred had a policy of not paying employees short-shift premiums and none of the putative class members were aware of the law regarding short-shift premiums. (Id. at p. *3.) The chief financial officer for Kindred was not aware of the law. (Ibid.) Kindred employees' AWS agreements made no mention of the short-shift premium. (Id. at p. *4.) Kindred had no code in their payroll system for short-shift premiums. (Ibid.)
Based on Kindred's policy of requiring employees to leave early when patient census is low and the fact employees were not aware they were
This case has two notable differences: First, QVMC has a written policy requiring the payment of short-shift premiums to AWS employees; and second, this requirement was included in each AWS agreement. The employees here, including Lampe, were aware of the short-shift premium and the prior named plaintiffs, Vinas and Ascusion, had utilized it. In Escano, supra, 2013 WL 816146, the lack of a policy and the fact the information was not communicated to employees allowed for class issues to predominate; the same is not true here. In order to evaluate whether an individual employee was denied a short-shift premium is an individualized determination because it is dependent upon the employee's reason for leaving early from a particular shift. A short-shift premium is not paid unless the employer ends the shift early; if an employee leaves voluntarily, the premium is not owed.
Appellants also rely on language in Escano that an employee who is unaware of the short-shift policy could not elect to leave voluntarily and forgo their premium payment. (Escano, supra, 2013 WL 816146.) But, in Escano, much of the issue rested on involuntariness; here the employees were aware of the policy and many chose to leave early (without payment) when they had the opportunity.
The trial court did not abuse its discretion in finding the claim required individualized assessment and could not be proven efficiently as a class.
Appellants raise two arguments on appeal regarding meal breaks: (1) QVMC failed to provide a second meal break when employees worked 12 hours or more; and (2) QVMC failed to provide a meal break within the first five hours of an employee's shift.
Appellants argue QVMC failed to provide a second meal break to employees who worked a 12-hour shift or longer. Appellants' theory before the trial court was that QVMC forced employees to waive their second meal break as a condition of employment.
Appellants' evidence consisted of statistical analysis: Berger concluded the sample class worked more than 12.25 hours 52.7 percent of the time. The data showed there were no meal punches for a second meal period when they worked longer than 12.25 hours. Berger's analysis showed that Lampe worked more than 12.5 hours on 65 days (6.6 percent of the time) and he did not punch out for second meal on those days.
QVMC presented declarations from employees who stated they took a second meal break when they worked over 12 hours.
Additionally, QVMC's evidence indicated the issue of employee waivers could not be addressed on a classwide basis. Each employee's written waiver form was contained in the employee's individual personnel file. In addition, the declarations and deposition transcript excerpts demonstrated the employees' ability to take meal breaks varied from department to department. The question of whether a missed meal break was due to the employer's failure to allow it or from the employee's voluntary choice not to take it requires an individualized inquiry. The evidence demonstrated QVMC's written policy provided a second meal period but allowed employees to waive it. The expert's analysis does not change the nature of the claims.
The plaintiffs in Sotelo relied on Jaimez v. Daiohs USA, Inc. (2010) 181 Cal.App.4th 1286 [105 Cal.Rptr.3d 443] (Jaimez), where the court found that employees had been purposefully denied overtime and meal and rest breaks. Jaimez concluded the claims were amenable to class treatment due to evidence that the employer maintained "uniform policy and practice" affecting all putative class members. (Id. at p. 1289.) The Sotelo court distinguished Jaimez: "In Jaimez, there was an allegation that defendant `had a policy of failing to permit or authorize [route sales representatives] to take rest breaks ....' (Jaimez, supra, 181 Cal.App.4th at p. 1304.) Moreover, Jaimez presented evidence of a common factual issue — that `[t]he delivery schedules made it extremely difficult for [route sales representatives] to timely complete the deliveries and take all required rest breaks.' (Ibid.) As with the overtime claims, appellants failed to allege a uniform policy on the part of respondents to deny putative members the ability to take rest breaks." (Sotelo, supra, 207 Cal.App.4th at pp. 654-655.)
Sotelo concluded the plaintiffs had not alleged that the newspaper had a uniform practices or policies that denied employees overtime or meal breaks. (Sotelo, supra, 207 Cal.App.4th at p. 655.) And the plaintiffs failed to show that such a policy could be established by the evidence. (Ibid.)
Similarly, here, appellants are arguing that QVMC had a policy requiring employees to waive meal breaks, but they have no evidence to support this contention. If QVMC, in fact, had such a policy that applied to all employees, appellants could demonstrate the claim was proper for class certification under Jaimez, supra, 181 Cal.App.4th 1286. Here, however, QVMC's policy provided for meal breaks as required by law, but allowed employees to waive the breaks. In Sotelo, the court found no common policy applied to all employees that violated state law. (Sotelo, supra, 207 Cal.App.4th at p. 655.) "This is very different from the circumstances here where the plaintiffs alleged, and produced specific evidence, showing the existence of a common practice (the failure to authorize and provide for meal and rest breaks) that violated state law." (Bradley v. Networkers Internat., LLC (2012) 211 Cal.App.4th 1129, 1153 [150 Cal.Rptr.3d 268].)
Dr. Drogin analyzed time records for 75 employees who worked 12-hour shifts from 2007 to 2014 and concluded only 11.1 percent had meal breaks of 30 minutes within the first five hours of their shifts. Appellants did not submit
Numerous other QVMC employees provided declarations that they were provided a break within five hours of starting their shift. A missed meal break does not constitute a violation if the employee waived the meal break, or otherwise voluntarily shortened or postponed it. (See Brinker, supra, 53 Cal.4th at pp. 1040-1041.)
To determine why each employee did not take their first meal break after five hours would require an individualized determination and review of individual employee files and pay stubs. (See Koval v. Pacific Bell Telephone Co. (2014) 232 Cal.App.4th 1050, 1062-1063 [181 Cal.Rptr.3d 805] [no common method to prove classwide liability because of the variation on how policies were communicated to each individual plaintiff].)
The trial court correctly concluded that common issues did not predominate and given the individualized inquiries required and the potential conflict between the named plaintiffs and the class, there were not substantial benefits from proceeding as a class.
The judgment is affirmed. Respondent shall recover its costs on appeal.
Kennedy, J.,
The trial court here properly focused on the theories set forth in appellants' complaint. Appellants could not demonstrate QVMC had uniform policies that denied employees meal or rest breaks, or that QVMC "forced" appellants to waive their meal breaks as a condition of employment. Unlike Lubin, appellants cannot point to common policies or uniform practices to support their allegations.