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Catalina Restaurants, JoJo's Faces Class Action over Alleged Wage and Hour Violations

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San Diego, CA: An overtime class action lawsuit has been filed against Catalina Restaurant Group Inc. and JoJo's California Family Restaurants, Inc. ("Catalina") for alleged wage and hour violations, specifically for violating 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., Case No. 30-2012-00574113 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."

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