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Employment Law
Overtime Compensation
Failure to Pay

Frank Armenta, Drake Cesmat, Eric Johnston, Brett Kimball, Jon Norvell, Harold Showers, Ronald Showers, et al. v. Osmose Wood Preserving Inc.

Published: Sep. 14, 2004 | Result Date: Feb. 13, 2004 | Filing Date: Jan. 1, 1900 |

Case number: CV000999 Bench Decision –  $445,648

Judge

Martin J. Tangeman

Court

San Luis Obispo Superior


Attorneys

Plaintiff

James H. Cordes
(James H. Cordes and Associates)

Carol D. Janssen


Defendant

Leonora M. Schloss
(Jackson Lewis PC)

Reed E. Schaper
(Hirschfeld Kraemer LLP)


Facts

Plaintiffs Frank Armenta, Drake Cesmat, Eric Johnston, Brett Kimball, Jon Norvell, Harold Showers, Ronald Showers, Olivia Smith, Colleen and Ken Ulrich worked for Osmose Wood Preserving Inc. They were foremen and crew members on two- to four-person crews. The crews inspected, treated and reinforced wood utility poles throughout the state of California. The plaintiffs belonged to the union. In November 2000, the plaintiffs filed a class action against Osmose, alleging violations of California's wage and hour law. They sought compensation for unpaid drive time on grounds that work was performed during that time. They also sought recovery for unpaid time spent on preparatory and collateral tasks such as preparing reports and stocking and maintaining the company utility truck. According to the plaintiffs, Osmose's policies and practices was not to record any time for work done away from the inspection, treatment and reinforcement of the poles. Supervisors were specifically instructed not to report the hours. The plaintiffs further asserted unfair business practices under Business and Professions Code Section 17200. Osmose maintained that the plaintiffs were paid for all hours worked. Even assuming that they were not paid, Osmose argued that each plaintiff received total weekly wages exceeding the minimum wage for all hours worked on a weekly basis. Osmose therefore denied any damages for failure to pay minimum wage. The proposed class included all similarly-situated foremen and crew members. After class certification was denied, the remaining plaintiffs pursued their individual claims.

Settlement Discussions

The plaintiffs made various demands prior to mediation. During an all-day mediation with retired Judge Melinda Johnson of JAMS, they made confidential demands. Osmose offered $12,000 collectively to Armenta, Kimball, Norvell, Smith and Colleen Ulrich; and nothing to Showers or Johnston.

Damages

The plaintiffs sought approximately $250,000 in unpaid minimum wages, liquidated damages and waiting-time penalties under the Labor Code, and prejudgment interest.


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