Settlement Reached in Cellphone Use California Labor Laws Suit

A judge has approved a multimillion-dollar deal affecting employees who say they were forced to use their personal cellphones without reimbursement, an action that claimants said violated California labor laws.

In total, more than 34,000 cleaning employees were associated with this California labor law violation claim, which could now end with a total payment of $5 million. Most of the people eligible for the settlement had already been contacted, but the legal team is still searching for close to 1,000 workers who might have had to use their private cellphones for work tasks.

The lawsuit was originally filed in October 2014 against ABM when two plaintiffs stated that janitorial employees never received reimbursement for the time spent on personal cellphones for clocking in and out of working or speaking with supervisors about work related matters.

Under the legal claims made in the California labor law claim, three different classes of employees were certified based on differences in how they used their phones for work. The workers, in early preliminary settlement discussions, argued that the entire group could be eligible for over $17 million in awards if the case were to proceed through litigation.

Wage and Hour Laws

Employers in California must be mindful of wage and hour laws – including payment of overtime, proper breaks, and the use of personal phones for work purposes. Although smartphones have become increasingly common and are a quick way to get in touch with a labor force, there are legal and logistical issues that an employer must be aware of when a worker has to use their own phone for work. Typically, according to Silvertrac Software, this means that the employee tracks the information about how it was used in order to submit for reimbursement.

Employers do have the option to issue company-owned phones to be able to reach employees quickly and consistently without making any worker feel as though they have to use a personal phone, and to avoid the complications of reimbursement tracking.

Very few employers would see the benefit in trying to pay the entire phone bill of employees, especially due to the high cost and the difficulty in figuring out what portion of the phone use is dedicated to personal vs. company time. Some companies have opted to provide fixed payments to workers to account for any potential phone use.

However, according to Labor Sphere, one issue that has come up in past lawsuits over personal cell phone use has to do with whether or not those employers making partial payments to cover this cost are paying what was considered reasonable percentages.

Any employee curious about how their phone policies work should carefully review their company handbook and determine what needs to be done in order to claim payments for cell phone use. A flat fee, percentage, or entire bill cost might be offered by the company, or the employer could offer a business phone to workers.

Any worker who feels that they have not received their due because they have repeatedly used their own phone for work and were not properly reimbursed for it, or who feel their employee rights have been violated, should be ready to talk to an experienced and dedicated lawyer; Top Class Actions can help you find an attorney to explain your rights under California labor laws.

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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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