Facts

Southern California Orthopedic Institute is an orthopedic practice headquartered in Van Nuys, California, but with locations in Bakersfield, Simi Valley, Thousand Oaks, Valencia, Beverly Hills and Porter Ranch. It specializes in diagnosing and treating bone, joint, and muscle injuries as well as musculoskeletal and spinal disorders in not only adults but also children. On January 24, 2019, one of its former employees, Diana Garcia, filed a Private Attorneys General Act suit in the Los Angeles Superior Court. She was employed by defendant Southern California Orthopedic Institute, from 2012 to February 2018, as a non-exempt employee.

PLAINTIFFS' CONTENTIONS: Plaintiff Garcia, as representative of the class, alleged that defendant Southern California Orthopedic Institute, violated several labor and employment codes and regulations, including: failure to provide rest and meal periods or compensating as such; failure to comply with itemized employee wage statement provisions knowingly and intentionally; failure to timely pay wages upon separation of employment. Moreover, plaintiffs further contended that such acts constituted unfair business acts and practices, and consequently, plaintiffs sought appropriate and all penalties for those violations.

DEFENDANTS' CONTENTIONS: Defendants denied all allegations made by plaintiffs in regards to this case and further denied that it was liable or owed any damages or other compensation of remedies to any person with respect to plaintiffs' alleged facts or causes of action that were asserted in this action.

Result

The case settled with defendant agreeing to pay up to $925,000 plus payment of employer-side payroll taxes. Deducted from this amount would be civil penalties totaling $20,000.