Pacific Southwest Container Agrees to $2.3M Wage and Hour Settlement

California-based packaging company Pacific Southwest Container has agreed to a $2.3 million settlement to resolve claims that the company committed wage theft against almost 1,500 employees.

Pacific Southwest Container Wage and Hour Lawsuit

The proposed settlement agreement between Pacific Southwest Container and named plaintiff Erasmo S. was announced in September. Judge Marie Sovey Silveira of the Stanislaus Superior Court of California granted preliminary approval to the proposed settlement in July.

A final approval and fairness hearing has been scheduled for Nov. 19, at which time Judge Silveira may officially approve the $2.3 million settlement and funds may be dispersed to the plaintiffs.

According to Erasmo, the packaging company routinely underpaid employees by rounding down the time that the employees worked, and miscalculating overtime hours in order to reduce wage payments. Additionally, Erasmo claims that although employees were forced to clock out for required lunch and rest breaks, employees often actually worked through these breaks in order to stay on schedule.

Despite agreeing to the proposed settlement in order to resolve the lawsuit, Pacific Southwest Container has denied these claims, stating that the company has paid all earned wages in full, and does not require employees to work without pay.

The class action suit is expected to cover approximately 1,500 current and former hourly employees who worked at the company between Jan. 23, 2014, and July 16, 2019. $1.45 million of the proposed $2.3 million settlement has been allocated for the class members of the lawsuit, averaging a payout of $973 per employee. Approximately 30 percent of the proposed $2.3 million will be used to pay the legal fees for the plaintiffs.

Pacific Southwest Container is based out of Modesto, and provides packaging to a variety of industries including snack foods, wine, technology, agriculture, retail, and craft beer.  The company was founded in 1973 and employs more than 1,000 people, in addition to temporary workers.

California Wage and Hour Lawsuits

Under California wage and hour laws, employees are entitled to fair wages and safe working conditions. Wage and hour laws protect employees who have been subject to violations including:

• Lack of compensation for overtime work
• Failure to properly estimate the amount of overtime worked
• Rounding down employee work times
• Failure to comply with minimum wage laws
• Not being given meal or rest breaks
• Not being compensated for missed meal or rest breaks
• Not being compensated for all hours worked
• Failure to reimburse work-related expenses

Employees whose rights have been violated under California wage and hour laws may be able to hire an attorney and file a lawsuit against their current or former employer. Employers who have violated these laws may be subject to fines, and employees may be able to collect reimbursement and additional compensation.

Join a Free California Wage & Hour Class Action Lawsuit Investigation

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

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