Amanda Antell  |  October 16, 2017

Category: Labor & Employment

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Clock with work overtime text, 3d renderCalifornia Resources Corporation (CRC) is facing a class action wage and hour lawsuit led by a previous employee alleging contractor misclassification.

The lead plaintiff alleges he and other class members experienced contractor misclassification by CRC, so the company could avoid paying them minimum wage and overtime wages.

California Resources Corporation is an oil and natural gas exploration and production company operating various properties across California, and is subject to both state and federal labor laws. The company allegedly violated those laws by forcing a day rate payment system on employees, and allegedly misclassifying then as contractors in order to avoid paying them minimum wage.

This contractor misclassification lawsuit alleges the company deliberately conducted contractor misclassification to cut down on labor costs.

Overview of California Contractor Misclassification Lawsuit

Lead plaintiff Michael D. filed this class action wage and hour lawsuit on behalf of himself and others similarly situated, alleging his previous employer had violated state and federal labor laws by conducting deliberate contractor misclassification.

Michael says he worked as an Electrical Construction Technical Representative for CRC, providing customers with mechanical, electrical and instrument design and support. At all times relevant, Michael worked exclusively for California Resources Corporation between February 2013 to August 2015.

He allegedly completed his occupational duties in the company’s plants and facilities, and had a typical employee-employer relationship with the company. In addition, Michael says he and other employees regularly worked over 40 hours a week and had to give full control of their schedules to the company.

Instead of receiving minimum wage, Michael claims, he received a day-by-day pay rate and did not receive any overtime benefits during his employment. Even with these employment expectations, Michael claims the company wrongfully classified him as an independent contractor.

Michael had opted to file contractor misclassification lawsuit after discovering other employees were similarity situated in alleged contractor misclassification. During the investigative process, it was discovered that class members were paid by the company’s day rate system regardless of the employee’s position or job title.

According to Michael, none of the class members received any overtime benefits, even though they allegedly would work over 40 hours a week on a regular basis. Under California labor laws, a company must pay an employee minimum wage rate and other benefits if they meet eligibility requirements.

These requirements include not being of managerial or other authoritative status, and not receiving payment on a salary basis. This means that companies must pay employees one and a half times the hourly rate for hours worked over 40 in a single week, or for hours over eight in a single work day.

In addition, employers are prohibited from misclassifying employees as contractors to make them exempt from overtime if they have typical hourly employment duties. This includes adhering the company’s scheduling and working on a standard schedule. The company must also keep pay records of its employees, dating back several years.

Michael is filing this contractor misclassification lawsuit on behalf of himself and other similarly situated, seeking damages for all missing wages and any other relevant damages.

This Contractor Misclassification Lawsuit is Case No. 2:17-cv-07038-ODW-AFM, in the U.S. District Court for the Central District of California, Western Division.

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