Facts

Watlow Electric Manufacturing Company is a Missouri corporation that manufactures industrial heaters, sensors, and controllers. It operates numerous manufacturing facilities and sales offices throughout the United States. Clarence Smith and Phuoc Truong worked for Watlow and brought a putative class and Private Attorneys General Act (PAGA) action, on behalf of Watlow employees, against the company.

PLAINTIFFS' CONTENTIONS: Plaintiffs asserted that defendant violated the Labor Code by failing to provide compliant rest breaks; compliant meal periods; wages owed at separation; and compliant wage statements. Plaintiffs also alleged that defendant violated the Unfair Competition Law, Business Professions Code, and PAGA. Plaintiffs contended that they received paychecks drawn from an account at Harris Bank, an entity with no California locations, which did not list a business address where they could be cashed in California without fees; plaintiffs consequently incurred fees to access their wages; and thus, plaintiffs were not paid all wages due upon separation of their employment. Plaintiffs alleged that defendant failed to provide compliant wage statements because the wage statements did not correctly identify the overtime rates of pay, number of hours worked each rate of pay, and the total hours worked in pay periods in which they worked overtime.

DEFENDANT'S CONTENTION: Defendant denied all contentions. Defendant asserted that plaintiffs' complaint was barred by the doctrine of laches and the avoidable consequences doctrine because, while employed, plaintiffs unreasonably failed to use defendant's internal procedures to raise any alleged wage and hour violations; plaintiffs undue delay in raising the alleged violations prejudiced defendant because any alleged harm to plaintiffs would have been avoided if they had reported any alleged violations through defendant's internal procedures. Defendant contended that defendant and its agents at all times complied and/or substantially complied with all applicable statutes, regulations, laws, and/or interpretive guidance because, among other things, defendant issued paychecks substantially compliant with the Labor Code.

Result

The case settled for $500,000.