Settlement Reached in CVS Wage Statement Lawsuit

A $3 million settlement has been reached between CVS Pharmacy Inc. and store employees who allege they were provided inaccurate itemized wage statements in violation of California labor law.

Brought by plaintiff Willie Brown in September 2015, the CVS wage statement lawsuit claimed the pharmacy chain failed to list the correct amount of total hours worked by its employees in their wage statements by incorrectly including shift differential pay hours.

The CVS wage statement lawsuit alleged CVS violated California Labor Code.

CVS Wage Statement Lawsuit Settlement

The CVS wage statement lawsuit settlement, which is awaiting court approval, will cover some 7,784 potential class members who, as store employees, received a shift differential pay on a wage statement between Sept. 29, 2014, and Sept. 1, 2016.

CVS denies any wrongdoing but has agreed to change its policy around itemized wage statements to reflect only the regular number of total hours worked.

“This was a highly contentious litigation with the parties each being represented by highly competent counsel,” Larry W. Lee, an attorney for the plaintiffs, said in a motion asking the court to grant preliminary approval of the deal, conditional certification of the class and to schedule a fairness hearing.

He added “the parties engaged in substantial investigation and discovery related to the claims and defenses alleged in this case.”

California Wage Statement Laws

California employers must provide employees with an accurate, itemized wage statement, either as a paystub or a separate written document.

Specifically, California law requires ten pieces of information to be included on every payroll paystub or wage statement for each employee:

• Gross wages earned
• Total hours worked by the employee, except for any employee whose compensation is solely based on a salary and who is exempt from overtime under Labor Code Section 515(a), or any applicable order of the Industrial Welfare Commission
• All deductions, provided that all deductions made on written orders of the employee may be aggregated and shown as one item
• Net wages earned
• The inclusive dates of the period for which the employee is paid
• The name of the employee and the last four digits of his or her social security number, or an employee identification number other than a social security number
• The name and address of the legal entity that is the employer
• All applicable hourly rates in effect during the pay period and the corresponding number of hours worked at each hourly rate by the employee
• The amount of accrued paid sick leave
• If applicable, the number of piece-rate units earned and any applicable piece rate if the employee is paid on a piece-rate basis

In California, failure to comply with the requirements of wage statement laws is not only a misdemeanor, but also carries substantial civil penalties.

A California employee who is “deemed injured” by a wage statement violation is entitled to statutory penalties in the amount of $50 for the first violation (per employee) and $100 for each subsequent violation, with a maximum of $4,000 per employee.

Additionally, civil penalties can be awarded at double the foregoing amounts, with no established maximum.

The CVS Wage Statement Lawsuit is Willie Brown v. CVS et al., Case No. 2:15-cv-07631 in the U.S. District Court of the Central District of California.

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