Litigating California Wage & Hour Class and PAGA Actions - 22nd Edition

ii  Litigating CA Wage & Hour and Labor Code Class Actions (22nd Edition) Seyfarth Shaw LLP | www.seyfarth.com IV. Unlawful Deductions from Wages........................................................................... 24 A. Generally ................................................................................................................. 24 B. Bonus Plan “Deductions”.......................................................................................... 25 C. Unlawful Commission Chargebacks......................................................................... 26 1. Nature of the Violation................................................................................ 26 2. Steinhebel Approves Certain Chargeback Plans ........................................ 27 3. Further Development of the Law Since Steinhebel .................................................................................................. 28 V. Reimbursement of Employee Expenses................................................................. 30 A. The Duty to Reimburse Expenses Under Labor Code Section 2802......................................................................................................................... 30 B. Reimbursement for Uniforms Under the Wage Orders ............................................. 33 VI. Meal and Rest Period Claims................................................................................... 34 A. Nature of Claims ...................................................................................................... 34 1. Employers Must “Provide” Meal Periods..................................................... 35 2. Employers Must “Authorize and Permit” Rest Periods....................................................................................................... 35 3. Meal and Rest Period Premium Pay........................................................... 36 B. Debate Over Whether One-Hour Payment Is a “Penalty” ......................................... 38 C. Meaning of “Provide” a Meal Period ......................................................................... 39 D. Limits on IWC’s Power to Alter Labor Code Meal Period Rules........................................................................................................................ 43 VII. Tip-Pooling................................................................................................................ 44 A. Actions Alleging Tips Were Diverted to Co-Workers Who Did Not Earn Them......................................................................................................... 44 B. Actions Alleging “Agents” of Management Wrongfully Took Tips.......................................................................................................................... 46 C. The Future of Tip-Pooling Cases Under California Law............................................ 47 VIII. Vacation/Paid Time Off Forfeiture ........................................................................... 48 IX. Waiting Time Penalties............................................................................................. 51 A. Generally ................................................................................................................. 51 B. Application to Fixed-Term and Temporary Employment ........................................... 53 1. Assignments for a Fixed Term.................................................................... 53 2. Temporary Employment Agencies.............................................................. 54

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