Class Cert. Denied for Chase Unpaid Overtime Lawsuit

The plaintiffs of a Chase unpaid overtime class action lawsuit, which alleges Chase Investment Service Corp. misclassified groups of employees and unlawfully withheld pay for overtime worked, were denied Class certification by the presiding California federal judge.

According to U.S. District Judge S. James Otero’s ruling earlier this month, the co-plaintiffs’ claims in this unpaid overtime class action lawsuit are atypical of the proposed putative Class.

In his motion to deny unpaid overtime class certification, Otero wrote, “In the aggregate, plaintiffs have failed to show that the adjudication of this matter as a class action promotes judicial economy or protects the rights of class members who are otherwise unable to present their claims.” Both plaintiffs filed for bankruptcy after they pursued this unpaid overtime class action lawsuit, which the judge reasons may have distracted the co-plaintiffs from claims typical of the Class as a whole and not unique to their specific experiences.

In July 2011, co-plaintiffs Michael Alakozai and Steven Pitts filed an unpaid overtime lawsuit against Chase Investment, claiming that while they worked as financial advisors for the company, they were not paid for overtime hours worked and they were denied 30 minute rest periods every workday. In their unpaid overtime class action lawsuit, the plaintiffs alleged Chase Investment violated both the federal Fair Labor Standards Act and California Labor Laws and were seeking restitution of the unpaid overtime wages due to Alakozai and Pitts and actual and punitive damages for labor code violations.

The following month, the co-plaintiffs filed a motion to certify a Class of “current and former [financial] advisors or advisor trainees who were employed by CISC, its predecessors, or successors in California after July 15, 2007, and who were compensated on a commission or salary basis.” In this unpaid overtime class action lawsuit, Alakozai and Pitts claimed they had the same interests as other Class Members, because the co-plaintiffs and the Class were all misclassified as overtime exempt, denied meal and rest breaks, and weren’t timely paid.

However, Chase Investments argued that the co-plaintiffs have atypical cases because of the separate bankruptcy each co-plaintiff filed in 2012, which calls for a unique defense. Otero agreed with Chase Investment’s counter argument, stating, “Due to their failure to disclose the instant action in their respective bankruptcy filings, it is unclear whether plaintiffs may bring the instant claims in their own right, let alone on behalf of the class.” While the co-plaintiffs’ case will move forward, for now Class certification for this unpaid overtime class action lawsuit has been denied.

The Chase Unpaid Overtime Class Action Lawsuit is Alakozai, et al. v. Chase Investment Services Corp., Case No. 2:11-cv-09178, in the U.S. District Court for the Central District of California.

Fair Labor Standards Act and California Labor Laws

The Fair Labor Standards Act (FLSA) and individual state labor laws were established to ensure employees received fair wages and were properly and fully compensated for hours worked. The laws also protect workers from potential danger, exploitation, and abuse by their employers.

The FLSA says: “Unless exempt, employees covered by the Act must receive overtime pay for hours worked over 40 in a workweek at a rate not less than time and one-half their regular rates of pay.”

The unpaid overtime claim is just one of several FLSA violation claims former employees have made against Chase Investments. They additionally claim that Chase violated California state labor laws, which take additional steps to protect employee overtime wages. If a California employee works 12 or more hours beyond the typical 40 hour work week, then the employer must pay the worker double their hourly age.

Chase Investment is not the only business facing litigation for labor code allegations concerning meal and rest breaks, wage and hour concerns, or unpaid overtime violations. Within the last few years, many California employees have filed unpaid overtime, wage and hour class action lawsuits against employers who allegedly violated federal and state labor laws.

Join a Free Unpaid Overtime, Wage & Hour Class Action Lawsuit Investigation

If you were forced to work off the clock or without overtime pay in California within the past 2 to 3 years, you have rights – and you don’t have to take on the company alone.