Week Adjourned: 6.8.12 – Catalina Restaurants, NobelTel, Hilton LAX

Weekly wrap of top class action lawsuits and settlements, for the week ending June 8, 2012; top stories include Catalina Restaurant Group, NobelTel, and Hilton LAX hotel

Top Lawsuits

Overtime Violations on the Menu at Catalina. First up this week, an overtime  class action lawsuit. This one filed against Catalina Restaurant Group Inc. and JoJo’s California Family Restaurants, Inc. (“Catalina”) for alleged wage and hour  violations.

Specifically? Violations of California labor laws in regards to overtime pay and requiring their employees to work off-the-clock without being paid for all their hours worked. McDermott, et al. vs. Catalina Restaurant Group Inc. and JoJo’s California Family Restaurants, Inc., was filed by attorneys at Blumenthal, Nordrehaug & Bhowmik, who are representing the plaintiffs.

According to the class action lawsuit, the restaurant “did not have in place an immutable timekeeping system to accurately record and pay Plaintiff and other California Class Members for the actual number of hours these employees worked each day, including overtime hours worked.” Specifically, the lawsuit claims that Catalina “consistently did not allocate enough labor hours such that there was not enough time for Plaintiff and California Class Members to complete their required duties.” As a result, the Complaint alleges Plaintiff and California Class Members were forced to clock out of Catalina’s timekeeping system, but were still required to perform additional work for Catalina for which they were not compensated for.

Furthermore, the complaint also alleges that the Plaintiff and California Class Members received non-discretionary quarterly bonuses from Catalina, but Catalina failed to include this extra bonus compensation in the regular rate of pay for the purposes of calculating the correct overtime pay rates owed to these employees. The failure to include the bonus compensation in the regular rate of pay for overtime purposes, according to the complaint, “has resulted in a systematic underpayment of overtime compensation” to the Plaintiff and members of the California Class.

The Complaint further claims that as a result of Catalina’s failure to record all hours worked by members of the California Class and Catalina’s failure to pay these employees the correct overtime rate, Catalina “failed to provide the Plaintiff and the other members of the California Class with complete and accurate wage statements which failed to show, among other things, the correct number of all hours worked and the correct overtime rate for overtime hours worked.”

Founding partner of Blumenthal, Nordrehaug, & Bhowmik, Norman Blumenthal asserts, “when employers exclude non-discretionary bonuses from the regular rate of pay when calculating their employee’s overtime rate, they are violating the law.”

Top Settlements

Ignobel NobelTel? A settlement has been proposed in the of a consumer fraud class action lawsuit captioned Sabaj et al. v. NobelTel, LLC et al. (aka, NobelTel Prepaid Calling Card class action lawsuit)

It could affect you if you purchased prepaid calling cards that were sold, serviced or distributed in California by Nobel, Inc., Nobel, Ltd., NobelCom, LLC, and NobelTel, LLC (“Defendants”), or if you purchased any prepaid calling services sold online and submitted a California billing address through www.nobelcom.com and www.enjoyprepaid.com, between April 8, 2006 and May 24, 2012 (“Nobel Prepaid Calling Cards”). If you made such a purchase, you may be a member of the Settlement Class. (This is only a summary legal notice. A detailed notice is available at the websites and toll free number listed below.)

What Is The NobelTel Lawsuit About?

The consumer fraud lawsuit claims that the Defendants did not inform consumers sufficiently about the applicable rates and charges for their prepaid calling cards and services, failed to deliver minutes voice prompted by the cards, and violated California consumer protection laws. Defendants deny they did anything wrong.

Am I Affected By The NobelTel Settlement?

You are a member of the Class if you purchased a prepaid calling card issued by Nobel, Inc., Nobel, Ltd., NobelCom, LLC, and NobelTel, LLC in California between April 8, 2006 and May 24, 2012. A list of eligible calling cards is available on the websites listed below.

You are also a member of the Class if you purchased any prepaid calling services sold online between April 8, 2006 and May 24, 2012 and you provided a California billing address through www.nobelcom.com and www.enjoyprepaid.com.

What Benefits Does The NobelTel Settlement Provide?

Defendants will provide 400,000 $5.00 calling card Settlement Personal Identification Numbers (“Settlement PINs”). These Settlement PINs can be used to make international and domestic calls, originating from California, to any place in the continental United States and to 879 foreign locations. A complete list of locations is available on the websites below. If you purchased Nobel Prepaid Calling Cards online, you may be entitled to receive one (1) Settlement PIN for up to the first $40 in Nobel Prepaid Calling Cards purchased, and an additional Settlement PIN for every $40 increment thereafter. If you purchased Nobel Prepaid Calling Cards in a physical store in California, you may be entitled to receive one (1) Settlement PIN for up to the first $20 in Nobel Prepaid Calling Cards purchased, and an additional Settlement PIN for every $20 increment thereafter, up to a maximum of six (6) Settlement PINs.

How Do I Make a Claim in the NobelTel Settlement?

If you purchased prepaid calling services sold online through www.nobelcom.com and www.enjoyprepaid.com, you will automatically receive the Settlement PIN(s) at the e-mail address you provided to Defendants without having to submit anything.

If you purchased a prepaid calling card in some other manner, you must submit a Refund Form to receive the Settlement PIN(s) by mail no later than November 20, 2012 to February 18, 2013.

What Are My Other Legal Rights?

Remain in the Settlement: You will be bound by the terms of the Settlement and give up your right to sue Defendants. To receive the Settlement PIN(s) see the instructions above.

Get out of the Settlement: If you wish to keep your right to sue Defendants, you must exclude yourself by August 13, 2012.

Remain in the Settlement and Object: If you stay in the Settlement, you can object to it by August 13, 2012. You give up your right to sue and are bound by all Court orders even if your objection is rejected.

A hearing in the case, Sabaj et al. v. NobelTel, LLC et al. Case No. BC435467 will be held on September 13, 2012 to consider whether to approve the Settlement and a request for attorneys’ fees and expenses up to $500,000.

Umm… the phone card that never runs out…

Hilton Settlement–No not with Paris, This one’s in LA…The Hilton Los Angeles Airport Hotel has agreed a $2.5 million settlement in the wage and hour  class action brought by 1,200 of its hotel workers. The Hilton lawsuit alleged that the hotel withheld wages, failed to pay overtime and failed to provide meal and rest breaks.

Filed in 2008, the unpaid overtime class action covers all hourly workers who worked at the hotel from 2004 to 2011.

Other allegations included in the employment lawsuit were that the Hilton LAX did not pay its employees for time spent preparing for work and putting on and taking off work uniforms that were required to be left at the hotel. And, that plaintiffs were required to fill out time sheets saying they took breaks whether they truthfully did or not.

Well – someone had to pay for Paris’ exploits…

Ok – that’s a wrap. See you at the bar. Happy Friday Folks.

Week Adjourned: 6.17.11

Top Class Actions

Logistical Error? Nothing like a lawsuit to improve your company’s standing—or attract quality employees—as FTDI West is about to find out. The company, located in California and Florida, got hit with an unpaid overtime class action lawsuit this week.

The gist of the lawsuit is labor code violations, well, that’s a no-brainer. Specifically, the lawsuit states that FTDI West Inc, violated: Sections 226.7 and 512 of the California Labor Code by failing to provide adequate meal breaks to employees involved, section 226.7 of the California Labor Code by failing to provide adequate rest breaks to employees involved, Section 510 of the California Labor Code by failing to pay proper overtime wages, Sections 203 and 226 (a) of the California Labor code by providing involved employees paystubs not in compliance with California law and not paying “waiting time” penalties, as well as two other causes of action as related to Business and Professions Code Section 17200 and the common law tort of unjust enrichment.

The overtime claims asserted deal with non-payment of “double time” wages. Double time wages are due for any work over 12 hours in a workday or any work beyond eight hours on any seventh consecutive day of a workweek.

The lawsuit defines its class members as “All current and former employees of Defendants who were employed as non-exempt employees at any of Defendants’ locations anywhere in California, at any time from four years prior to the initiation of this action until the present.” 

Top Settlements

Drywall Might Settle but the Dust Surely Hasn’t… Remember all the defective Chinese drywall lawsuits of not so very long ago? Well, they are slowly making their way through the courts to settlement land. Case in point—Banner Supply has agreed a $54.4 million settlement of a class action lawsuit brought by homeowners in the Orlando, FL area. In fact, the agreement covers 2,000 to 3,000 homes south of Orlando.

According to Builderonline something like 95 companies have been implicated as distributors of the sulfur-tainted drywall and named in subsequent lawsuits filed against the Chinese manufacturers. The defendants are accused of being the source of tainted drywall. While Banner Supply tops the list, others suppliers reportedly include ProSales L&W Supply, ProBuild, Stock Building Supply, and 84 Lumber.

While $54.5 million might seem a large settlement, it may only work out to between $18,000 and $24,000 per home, and estimates suggest the cost of repairing the affected properties could reach $100,000.

Defective Boat Injury leads to $31M Award. Ok. There’s bad design, and BAD DESIGN. In this case, I’m not talking about an infraction of the Home & Garden variety, but rather something that warranted a $31 million award. Two women brought a defective product and personal liability lawsuit against MasterCraft, after suffering some pretty horrendous injuries that good design likely would have prevented. 

Short version, in 2006 Nichollette Bell and Bethany Wallenburg were among 12 passengers riding in a MasterCraft X-45 wakeboarding craft. They were sitting on the bow of the boat when it was suddenly submerged as the driver of the boat went to retrieve a fallen wakeboarder. As a result the women were swept off the boat by the force of water and into the lake. The boat’s propeller struck Bell on the head, ripping out an eye and leaving her with brain damage. The propeller also slashed Wallenburg’s left elbow and lower back, resulting in muscle and nerve damage. In their lawsuit, the women alleged the boat was defectively designed. They also alleged the driver handled the boat negligently. Not surprisingly, the jury found MasterCraft 80 percent at fault and the driver 20 percent at fault. 

OK. That’s it for this week. See you at the Bar.

Week Adjourned: 2.25.11

Top Class Actions

Can you pay me now? Verizon Wireless has been hit with a wages and overtime class action this week. Ah—so that’s how they save you money…

Filed by a FiOS field manager, Ulysses Aburto, the suit alleges that Verizon told him and other FiOS field managers that they were salaried employees and therefore exempt from the overtime requirements of California wage and hour laws.

Ah, wait—maybe not… According to the complaint, Aburto and others did jobs that lacked the characteristics of exempt employment and were managers “in name only.” The plaintiffs “do not have managerial duties or authority and should therefore have been properly classified as non-exempt employees,” Aburto claims. This misclassification by Verizon is part of a corporate policy and practice that is “affirmative, willful and deceitful,” Aburto alleges.

And Aburto claims that the company cut costs by refusing to pay and forcing employees to work through mandated meal and rest breaks. Class members work between 20 and 40 hours of overtime per workweek but are not paid for that time, the suit says.

The complaint alleges unlawful business practices, failure to pay overtime or provide accurate Continue reading “Week Adjourned: 2.25.11”