Toast Inc. Faces Employee’s Claims of California Overtime Law Violations

Toast, Inc., a restaurant software company, faces a wage and hour lawsuit filed by a former employee alleging that the company violated California overtime law.

Plaintiff Dion M. filed the wage and hour lawsuit in the U.S. Central District of California. The lawsuit was filed as a collective and class action complaint on June 13, 2018.

According to the wage and hour lawsuit, Dion files the complaint individually and on behalf of all those similarly situated. Dion, who says he worked for the company between 2015 and November 2016, is a resident of Los Angeles, Calif.

Dion says that he frequently worked over 40 hours per week during his period of employment as an engineer with the company. However, Dion says he was not provided additional pay for the extra hours he worked, in violation of California overtime law.

“Defendant’s policy and practice of classifying the California Class members as exempt from overtime entitlement under California law for California Work and Defendant’s policy and practice of failing to pay overtime to the California Class members for California Work violate applicable provisions of California law, including applicable statutory and regulatory authority,” the complaint says.

Overview: FLSA and California Overtime Law

The Fair Labor Standards Act (FLSA) is a U.S. law enacted to protect workers against unfair work and pay practices. According to the Department of Labor (DOL), “[t]he FLSA establishes minimum wage, overtime pay, recordkeeping, and youth employment standards affecting employees in the private sector in Federal, State, and Local governments.”

The FLSA sets minimum wage, labor laws regarding interstate commerce employment, overtime pay, and child labor limitations. First passed in 1938, the FLSA has seen a number of changes. It remains a critical law for employers to understand in order to inhibit wage and hour violations that may occur.

There are a number of possible FLSA violations that may occur, including the failure to pay overtime wages. Some of these violations include the following:

• Off-the-clock work
• Unpaid on-duty meal and rest breaks
• Improper deductions from salaried employees
• Failure to pay minimum wage
• Illegal tipping practices
• Improper calculation of the regular rate

According to the FLSA, overtime pay is paid for hours worked greater than 40 hours per week and includes a pay rate of not less than one and one-half times the rate of regular pay. “Overtime” under the FLSA refers to hours worked beyond a prescribed threshold while the federal minimum wage is set a $7.25 per hour.

California overtime law also contains similar requirements regarding pay for work above and beyond the regular 40 hour a week maximum.

The filing of a collective action against an employer for wage and hour violations can help in a number of ways. For one, the filing of a wage and hour class action lawsuit can help save a victimized employee not only time but money. This is especially the case if there are strong wage and hour violations being made against the employer. Additionally, through a class action lawsuit, settlements may be settled quickly rather than having to go through a drawn out court battle.

The California Overtime Law Lawsuit is Case No. 2:18-cv-05248-DSF-SK, in the U.S. District Court for the Central District of California, Western Division.

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