By Amanda Antell  |  April 17, 2018

Category: Labor & Employment

unpaid overtimeThe city of Covina is facing a class action California overtime lawsuit from workers claiming the city failed to pay the claimants for all hours worked and overtime benefits. The class action California overtime lawsuit alleges the city had used an illegal compensation computation method, which undercut the claimant and other class members’ pay.

Plaintiff Gregg P.is the lead plaintiff in this class action California overtime lawsuit, who alleges the city used an illegal payment method that caused him and other claimants to be severely underpaid and were not compensated overtime.

The city of Covina allegedly did this to save money on labor costs, with the claimants arguing that the defendant also failed to include money to compensate class members. The city of Covina allegedly used the healthcare covers in the “regular rate”, which was used to calculate any overtime compensation.

According to the class action California overtime lawsuit, the regular rate of pay included cash in lieu of health benefits, contributions made towards purchasing health benefits, payments in lieu of holidays, and other payment made for bargaining agreements.

The city of Covina also paid Gregg and other class members monetary compensation for spending less than the monthly allowance provided towards the city’s health benefits program. In addition, Gregg states that the city using the holidays as an excuse was irrelevant because the nature of their employment requires them to work through the holidays anyway.

Gregg alleges the city had essentially used its healthcare program to undercut their hours worked, which resulted in them being denied overtime pay.

Overview of Class Action California Overtime Lawsuit

Under California labor laws, nonexempt employees must be paid an hourly rate of $11.00 and be paid an increased rate of 1.5x once overtime hours are breached. According to state employment laws, employees qualify for overtime benefits when they work over 40 hours a week or eight hours in a single day.

Employers must also keep accurate pay records that stem back at least several years, which not only shows all hours worked but any overtime that was earned. In addition, California labor laws also guarantee employees a 30-minute meal break every five hours and a 10 minute rest period every four hours.

During the meal break, employees must be able to leave the work premises and not perform any work duties during this time. If an employee is forced to work through a meal break or rest period, they must be compensated an extra hour of work on their paycheck.

California is one of the most progressive states in terms of employment laws, holding employers to a high standard in regards to how employees are treated. The class action California overtime lawsuit alleges the city of Covina had failed to pay city employees overtime and all hours worked, which eventually forced Gregg to file legal action.

Gregg is seeking damages for three years of overtime back pay that was earned but not paid, along with any other relevant damages. Gregg’s class action California overtime lawsuit is seeking to represent other city employees who were allegedly denied overtime from the city of Covina.

This class action California Overtime Lawsuit is Case No. 2:18-cv-02062, in the U.S. District Court of Central California.

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