CoreCivic Employees Wages Lawsuit Settles for $3.2M

A private prison, CoreCivic Inc. agreed to settle a California labor law violation class action lawsuit for $3.2 million over allegations that it failed to pay employees for the time they spent while going through security, and other wages they were entitled.        

The final settlement was reached four years after the action was filed by Jose Gonzalez on Oct. 17, 2016, in the Superior Court of California, County of Kern. The case was removed to the United States District Court for the Eastern District of California pursuant to a notice of removal filed by CoreCivic on Dec. 19, 2016.

The lawsuit raised allegations that CoreCivic employees were not paid for their hours worked or waiting time wages. In addition, Gonzalez claimed CoreCivic employees were not given legally required meal or rest periods. The lawsuit also raised a claim that the prison violated California business code.

In the order granting the settlement, U.S. District Judge Dale A. Drozd stated that although the plaintiffs in the wage-and-hour class action “have potentially meritorious claims,” there was no certainty that the class would have prevailed. In balancing the factors for final approval of the settlement, the judge found the settlement factors to be fair, stating that taking the case to trial would have further prolonged what had already been a four-year litigation even further.

The judge wrote in his decision, “The gross settlement amount of $3.2 million represents approximately 19 percent of plaintiffs’ maximum potential recovery on their claims, which plaintiffs estimate would be approximately $17,078,000.” He further stated, “The court has previously assessed the fairness and adequacy of the settlement amount, in light of the circumstances of this case, and found that a 19% recovery rate is within the range of the percentage recoveries that California district courts have found to be reasonable.”       

What Were the Wage and Hour Violations Alleged by CoreCivic Employees?

In his complaint, Gonzalez claimed he worked as a corrections officer at the prison, explaining that prior to each shift, CoreCivic employees had to park in a specific lot then walk to a security gate to begin the security check process, which took up work time that employees were not paid for.

At the start of each shift, about 50 corrections officers would have to be checked in and go through a gate individually, according to Gonzalez, after which time they go through a second gate where they see their supervisor and receive their post assignments. At a third gate, Gonzalez said in the complaint, the CoreCivic employees are checked for contraband and go through a metal detector, after which time they clock in by scanning their fingerprints.

Gonzalez contended that the same security process was done in reverse order to leave the facility. Together, the complaint alleged, both processes ran around 25 minutes, but CoreCivic employees were not paid for any of the time they spent going through security, upon entry or exit.

Rest and Meal Break Violations 

Gonzalez’s complaint also alleged CoreCivic employees were deprived of legally required meal and rest breaks. He claimed that the prison’s failure to provide employees with legally compliant meal breaks violated California law.

Under the California labor code, employees are entitled to an unpaid meal period of 30 minutes if they work more than five hours a day. Employees in California are also entitled to a second 30-minute break for 10 hours worked. If the employee works no more than 12 hours total, the employer and employee can agree to waive the second break. Under the labor code, the second break can only be waived if the first break was taken.

California law also requires employers to provide a ten-minute rest break every two hours for every four hours worked.

Waiting Time Penalties Claimed in the Lawsuit

The lawsuit raised claims that the CoreCivic failed to pay wages including overtime, meal period, and rest period wages, at the time of termination.

California has strict labor laws that protect employees and help ensure they get paid for the time they worked. Specifically, California Labor Code Section 203 provides that once an employee quits or is discharged, they are entitled to prompt payment of their wages.

Under the labor code, if an employer willfully withholds wages past the time they are due, the employee may be entitled to receive a “waiting time penalty.” This amount is calculated by multiplying the daily pay rate by the number of days the employer failed to pay, up to a total of 30 days.    

This is not the first lawsuit faced by CoreCivic. In 2019, the company faced allegations of forced labor claims in their detention centers.

Can I File a Wage-and-Hour Lawsuit?

Wage and hour laws vary if a person is an employee or contractor, and whether the employee is exempt or not, and California labor laws are more stringent that other states.

If your employer wrongfully withheld wages, didn’t pay you for the time you worked, denied your lawfully entitled breaks, or committed another labor law violation, you may be able to file a lawsuit or join a class action lawsuit to recover your damages. An experienced attorney can explain the legal process and advise you of your legal rights and remedies.

The CoreCivic Employees Wage and Hour Lawsuit is Gonzalez v. CoreCivic of Tennessee LLC et al., Case No. 1:16-cv-01891, and Richards v. CoreCivic of Tennessee LLC et al., Case No 1:17-cv-01094, filed in the United States District Court for the Eastern District of California.

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