ii Litigating CA Wage & Hour Class and PAGA Actions (24th Edition) Seyfarth Shaw LLP | www.seyfarth.com 1. California Trucking Ass’n v. Bonta: AB 5 Enforced as to Motor Carriers ......................................................................24 E. California Voters Adopt Proposition 22.......................................................................25 IV. Unlawful Deductions from Wages ........................................................................... 29 A. Generally ....................................................................................................................29 B. Bonus Plan “Deductions” ............................................................................................ 30 C. Unlawful Commission Chargebacks ...........................................................................31 1. Nature of the Violation ..................................................................................31 2. Steinhebel Approves Certain Chargeback Plans .........................................32 3. Further Development of the Law Since Steinhebel ..................................................................................................... 33 V. Reimbursement of Employee Expenses................................................................. 37 A. The Duty to Reimburse Expenses Under Labor Code Section 2802 ............................................................................................................................ 37 B. Reimbursement for Uniforms Under the Wage Orders...............................................41 VI. Meal and Rest Period Claims................................................................................... 43 A. Nature of Claims .........................................................................................................43 1. Employers Must “Provide” Meal Periods ...................................................... 43 2. Employers Must “Authorize and Permit” Rest Periods .........................................................................................................44 3. Meal and Rest Period Premium Pay ............................................................45 B. Debate Over Whether One-Hour Payment Is a “Penalty” ........................................... 47 C. Meaning of “Provide” a Meal Period ........................................................................... 48 D. Limits on IWC’s Power to Alter Labor Code Meal Period Rules ..........................................................................................................................51 VII. Tip-Pooling ................................................................................................................ 55 A. Actions Alleging Tips Were Diverted to Co-Workers Who Did Not Earn Them ...........................................................................................................55 B. Actions Alleging “Agents” of Management Wrongfully Took Tips ............................................................................................................................. 57 C. Timing of Payment Of Tips To Employees .................................................................58 D. The Future of Tip-Pooling Cases Under California Law .............................................58 E. Service Charges .........................................................................................................59 VIII. Vacation/Paid Time Off Forfeiture ........................................................................... 63
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