Albertson’s Employees to Receive $1.5M in Wage and Hour Class Action Settlement

Nationwide grocery store chain Albertson’s agreed to a $2.5 million settlement to resolve allegations of California labor law violations raised by California delivery drivers in a proposed class action.

The proposed class action lawsuit was filed in the Los Angeles Superior Court by Albertson’s employees Michael R., Brian T., and Chris V. on March 1, 2019 and was subsequently removed to the United States District Court for the Central District of California, Western Division.

The lawsuit raised claims that the grocery chain’s call-in scheduling policy violated California law. Under the policy, part-time drivers were allegedly required to “call in” to the employer every night to find out whether they had been scheduled to work on the next day. Claims were also asserted related to unpaid wages, unreimbursed business expenses, failure to pay sick leave, and invasion of privacy due to Albertson’s installation of DriveCam video cameras in the driver compartment of the truck.

In their motion filed on Oct. 30, 2020 requesting preliminary approval of the class action settlement, Albertson’s employees asserted, “These on-call shifts burden part-time employees by limiting their time and availability for other activities, yet nonetheless they receive no compensation from Defendant unless they are ultimately called in to work.”

The settlement agreement came following mediation involving “contentious legal argument” and plaintiffs’ filing and briefing of their motion for class certification and includes 820 non-exempt drivers who worked out of the distribution centers at Brea or Irvine, California from March 2015 to October 2020.

Under the terms of the settlement, $1.5 million would be distributed to the drivers with each of the three lead plaintiffs receiving a $15,000 incentive award. The settlement also accounts for $833,000 in attorney fees, $20,000 in administrative costs, and $37,500 to the California Labor and Workforce Development Agency.

Citing a total of $14,342,803 in class-wide damages for all claims alleged in the motion, the Albertson’s employees stated, “In summary, although Plaintiffs believe their claims have merit, Plaintiffs nevertheless recognize that the outcome of any litigation is rarely certain. And even if Plaintiffs had prevailed, the odds of a favorable verdict being reversed on appeal are not remote enough to ignore.”

What Were the Labor Law Violations Alleged by Albertson’s Employees?

In their fourth amended complaint, the Albertson’s employees who had filed the proposed class action alleged that the grocery store had a written policy requiring delivery drivers to “report to work 15-minutes prior to shift time to pick their daily run” and failed to pay wages for the interval, despite their presence being required on the premises. Additionally, the complaint raised claims that Albertson’s employees had to undergo unpaid security searches after their shift had ended.

Purportedly, the grocery store’s part-time delivery drivers were also required to call in to work each evening on a designated phone line and listen to a recording that indicated whether they were scheduled the following day and what time their shift began. The complaint asserted that it was sometimes necessary to call in “multiple times per day without receiving any compensation for the time spent calling into work each day.”

The complaint further alleged that Albertson’s didn’t provide the employees with compensation required under California labor law for business-related expenses incurred during layovers and using their own cell phones for work purposes.

Other labor law violations raised in the lawsuit included the grocery store chain’s alleged practice of denying its delivery drivers use of “accrued sick leave without the threat of discipline and/or discharge.”

What Were the Invasion of Privacy Claims Raised in the Lawsuit?

In the lawsuit, Albertson’s employees argued that the grocery store’s installation of a DriveCam recording device unlawfully invaded their privacy. According to the suit, the grocery store chain informed the drivers that the device would only be activated in the event such as “hard braking, swerving, or a collision.” However, the drivers contended that the DriveCam devices visually and audibly recorded private conversations with family members without their knowledge or obtaining their consent.

Is Call-In Scheduling Allowed Under California Labor Law?

California has strict labor laws that help ensure employees are paid wages for all the time that they’ve worked. Workers in California are generally entitled to receive wages from their employers for “on-call” or “stand-by time.”

By law, California workers are entitled to be paid wages if their activity is controlled by their employer — even if they are just waiting for work to begin. California labor law considers several factors to determine whether an employee can be paid for on-call time, including:

• The geographical restrictions placed on the employee
• Whether there is an unduly restrictive fixed time limit required for response
• The worker’s responsibilities and whether they can be traded with another worker
• Whether the policy impacts the employee’s ability to engage in personal activities during the time they are on call

Workers in California must also be provided with “reporting time pay” under the labor law when they are required to report to work, even if they are not engaged in work-related tasks.

The Albertson’s Employees Class Action Lawsuit is Case No. 19-cv-4373, in the United States District Court for the Central District of California.

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