MORRISON C. ENGLAND, Jr., Chief District Judge.
Through this action, Plaintiff Jose Chan ("Plaintiff") seeks relief from Defendants C&S Wholesale Grocers, Inc. ("C&S") and Tracy Logistics, LLC ("Tracy Logistics") (collectively "Defendants") for violations of the California Labor Code and California's Unfair Competition Law, Cal. Bus. & Prof. Code §§ 17200 et seq. Plaintiff originally filed his Complaint in the Superior Court of California, County of Los Angeles. On August 29, 2013, Defendants removed Plaintiff's case to the United States District Court for the Central District of California pursuant to the Court's diversity jurisdiction. On October 16, 2013, the case was transferred from the Central District of California to the Eastern District of California. ECF No. 20. Presently before the Court is Plaintiff's Motion to Remand ("Motion"). Mot., Oct. 1, 2013, ECF No. 16. For the reasons set forth below, Plaintiff's Motion is DENIED.
Defendant Tracy Logistics has employed Plaintiff as a Warehouse Supervisor at its Stockton Facility since the end of 2003 or the beginning of 2004. Generally speaking, Plaintiff alleges that he was hired by Defendants, misclassified as an "exempt" employee, and paid on a salary basis without any compensation for overtime hours worked, missed meal periods, or rest breaks.
Plaintiff further claims that he worked over eight hours per day, and/or more than forty hours per week, during the course of his employment with Defendants. According to Plaintiff, although Defendants knew or should have known that he was entitled to receive certain wages as overtime compensation, he did not receive such wages. Plaintiff also asserts he did not receive all his rest and meal breaks; nor did he receive one additional hour of pay when he missed a meal period. Additionally, while Defendants knew or should have known that Plaintiff was entitled to receive at least minimum wages as compensation, he did not receive that wage for all hours worked.
Plaintiff goes on to allege that he was entitled to timely payment of all wages during his employment and to timely payment of wages earned upon termination of his employment, neither of which he received. Likewise, Defendants did not provide Plaintiff with complete and accurate wage statements, although Defendants knew or should have known that Plaintiff was entitled to that reporting.
Plaintiff also asserts that Defendants failed to keep complete and accurate payroll records. Finally, Defendants purportedly falsely represented to Plaintiff that the wage denials were proper. Instead, according to Plaintiff, these wage denials were improper and served the purpose of increasing Defendants' profits.
These claims were brought by a different plaintiff in a class action in state court,
On June 15, 2012, after the Court remanded the case a second time, the
The subject wage and hour claims were subsequently brought in a new class action,
There are two bases for federal subject matter jurisdiction: (1) federal question jurisdiction under 28 U.S.C. § 1331 and (2) diversity jurisdiction under 28 U.S.C. § 1332. A district court has federal question jurisdiction in "all civil actions arising under the Constitution, laws, or treaties of the United States."
When a party brings a case in state court in "which the district courts of the United States have original jurisdiction," the defendant may remove it to the federal court "embracing the place where such action is pending." 28 U.S.C. § 1441(a). "The party invoking the removal statute bears the burden of establishing federal jurisdiction."
Defendants removed the instant case pursuant to the Court's diversity jurisdiction. As set forth above, a district court has diversity jurisdiction "where the matter in controversy exceeds the sum or value of $75,000, . . . and is between citizens of different states, or citizens of a State and citizens or subjects of a foreign state . . . ."
Diversity jurisdiction requires complete diversity of citizenship, with each plaintiff being a citizen of a different state from each defendant. 28 U.S.C. § 1332(a)(1);
C&S is a corporation, and thus has dual citizenship for diversity purposes, meaning it is a citizen both of the state where it was incorporated and the state where it has its primary place of business.
Next is the issue of Tracy Logistics' citizenship. For purposes of diversity jurisdiction in a case removed pursuant to 28 U.S.C. § 1441, "like a partnership, an LLC is a citizen of every state of which its owners/members are citizens."
Thus, because Plaintiff is a citizen of California, while Defendants are citizens of Vermont and New Hampshire, there is complete diversity between Plaintiff and Defendants.
Defendants contend that the standard for establishing the amount in controversy is a preponderance of the evidence. Plaintiff, on the other hand, takes the position that the Court lacks jurisdiction because he alleges that the amount in controversy for their individual claims is less than $75,000, and Defendants have failed to prove with legal certainty that the jurisdictional amount is met. Specifically, the Complaint states in the Jurisdiction and Venue allegations that "the `amount in controversy' for the named Plaintiff, including claims for compensatory damages, restitution, penalties, and pro rata share of attorneys' fees is less than [$75,000]." Compl. at 2. No specific amount is stated in Plaintiff's prayer for relief.
For the reasons set forth in the related case
Plaintiff takes issue with Defendants' calculations of Plaintiff's overtime claim. Mot. at 5. Specifically, Plaintiff contends that Defendants may not rely on a declaration made by Plaintiff in April 2011 as evidence of Plaintiff's hours worked through August 2013. Plaintiff also takes issue with Defendants' proposition that Plaintiff's salary was $28.13 per hour. Plaintiff also argues that Defendants' reliance on the settlement in
As a preliminary matter, the Court finds that under the preponderance of the evidence standard, it may accept $28.13 as Plaintiff's hourly wage. This assertion, contained in the Notice of Removal, is a weighted average which takes into consideration the amount of weeks worked at each hourly rate during the relevant class period. Notice of Removal at 10. Thus, this amount appears to be "relatively conservative, made in good faith, and based on evidence."
The time period at issue begins July 18, 2009. From July 18, 2009, to March 31, 2011, Plaintiff worked 88 workweeks. Plaintiff's Declaration states that during that time period, he worked Sunday through Thursday. Chan Decl. at 1. On days other than Thursday, Plaintiff worked from approximately 4:00 PM to 4:00 AM, or 12 hours per day.
Given that Plaintiff does not contest Defendants' assertion that the amount in controversy for Plaintiff's wage statement claim is $4,000, and that the amount in controversy for Plaintiff's claim for failure to keep requisite payroll records is $500, the amount in controversy—without calculating attorneys' fees or the amount in controversy for the overtime claim past the date of April 20, 2011—is $75,556.38.
Accordingly, the Court finds that the requisite amount in controversy is met by a preponderance of the evidence. Plaintiff's Motion to Remand is DENIED.
For the reasons just stated, Plaintiff's Motion to Remand, ECF No. 16, is DENIED.