MORRISON C. ENGLAND, Jr., Chief District Judge.
On August 15, 2014, Juan Orozco and Juan Orozco-Briseno (collectively "Plaintiffs") filed a First Amended Class Action Complaint ("Complaint") against Illinois Tool Works, Inc. ("Defendant") in the Superior Court of California, County of Sacramento. The Complaint alleges the following causes of action: (1) unfair business practices; (2) failure to pay overtime; (3) failure to issue accurate itemized wage statements; and (4) failure to pay wages due at separation of employment. ECF No. 1-1. The Complaint also seeks relief pursuant to California's Private Attorney General Act of 2004.
Plaintiffs filed the present action on behalf of themselves and a "California Class," defined as all individuals who are or previously were employed by Defendant in California as non-exempt, hourly workers during the period beginning four years prior to the filing of the initial complaint. Plaintiffs allege, among other things, that Defendant "as a matter of company policy, practice and procedure, intentionally, knowingly, and systematically failed to compensate [Plaintiffs] and other members of the California Class at the correct rate of pay for all overtime hours worked." ECF No. 1-1 at 6. Plaintiffs also allege that Defendant had and has a "uniform policy and practice of denying Plaintiffs uninterrupted, off duty thirty (30) minute meal breaks
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 removal statute is "`strictly construed, and a `defendant seeking removal has the burden to establish that removal is proper and any doubt is resolved against removability.'"
"Federal jurisdiction under CAFA has three elements: (1) there must be minimal diversity between the parties, (2) the proposed class must have at least 100 members and (3) the amount in controversy must `exceed[ ] the sum or value of $5,000,000.'"
Plaintiffs do not dispute that this matter has been pled as a class action involving more than 100 class members or that minimal diversity exists between the parties. Accordingly, the only question before the Court is whether Defendants have established by a preponderance of the evidence that the amount in controversy exceeds $5,000,000.
In the Complaint, Plaintiffs allege that they and every other class member were denied "off duty thirty (30) minute meal breaks each day." ECF No. 1-1 ¶ 17. For each of the years at issue, Defendant used the California Class members' actual rates of pay and assumed that each member was entitled to "just one additional hour of pay for each workweek" based on the alleged missed meal periods.
Utilizing the same actual rates of pay and same assumption that California Class members were each entitled to one additional hour of pay for each workweek, Defendant performed similar calculations to arrive at its total potential liability based on Plaintiffs' claim regarding missed rest periods.
Plaintiffs take issue with Defendant's assumed violation rate, i.e., that each class member would be entitled to one additional hour of pay for each workweek on the meal period and rest period claims, respectively. Conversely, Defendant argues the assumed rate is in fact conservative based on Plaintiffs' allegations as laid out in the Complaint. Defendant has the better argument. For instance, Plaintiffs allege that Defendant violated various provisions of the California Labor Code through a "uniform policy and practice" that "uniformly violated" Plaintiffs' rights. ECF No. 1-1 ¶¶ 6, 27. Even more specifically, Plaintiffs allege that "DEFENDANT uniformly violated the rights of the CALIFORNIA CLASS under California law by . . . failing to provide mandatory meal [periods] . . . to the PLAINTIFFS and the CALIFORNIA CLASS members,"
The issue is not quite as clear with regard to Plaintiffs' rest period claim, as the Complaint does not contain a commensurately explicit allegation as that described above. However, based on Plaintiffs' allegations regarding Defendant's systematic and uniform policy and practice of violating each of Plaintiffs' rights by failing to provide required rest periods, the Court finds that Defendant's calculations regarding that claim too are reasonable.
Plaintiffs also take issue with Defendant's reliance on the number of workweeks worked, rather than the days worked by each employee, and argue that the assumptions are improper because Defendant failed to demonstrate that each affected employee worked enough hours during every shift to justify a meal or rest break. These contentions perhaps would have had some force under the previously viable "legal certainty" test. However, following
For the foregoing reasons, Plaintiffs' Motion to Remand, ECF No. 6, is DENIED.