Ali v. Setton Pistachio of Terra Bella, Inc.

District Court, E.D. California·Decided February 9, 2023·No. 1:19-cv-00959·Unknown

Opinion

LILIA ALI, on behalf of herself and all Case No. 1:19-cv-00959-JLT-BAM others similarly situated, FINDINGS AND RECOMMENDATIONS Plaintiff, REGARDING PLAINTIFF’S MOTION v. (Doc. 61) SETTON PISTACHIO OF TERRA BELLA INC., a California corporation, and DOES 1 through 100, inclusive, Defendants. Plaintiff Laila Ali (“Ali”) filed suit against a pistachio grower and processor, Setton Pistachio of Terra Bella, Inc. (“Setton Pistachio”), alleging that Setton Pistachio violated California wage-and-hour laws by enforcing an unlawful rounding policy that failed to compensate hourly employees for all hours worked. Currently before the Court is Ali’s motion for class certification. (Doc. 61.) Setton Pistachio opposes certification. Both parties make evidentiary objections. The motion was referred to the undersigned for findings and recommendations, no hearing date was set, and the matter was submitted on the papers. (See Docs. 57, 60, 65.) For the reasons explained below, the Court will recommend that Ali’s motion for class certification be denied. /// /// Ali filed this lawsuit against Setton Pistachio on April 27, 2016, in Tulare County Superior Court, and filed a First Amended Complaint (“FAC”) on September 2, 2016. Setton Pistachio removed the action to this Court on July 12, 2019, under the Class Action Fairness Act. (Doc. 1.) The FAC raises six causes of action on behalf of Ali and a putative class: (1) failure to pay overtime wages, Cal. Labor Code §§ 510, 1194; (2) failure to pay minimum wages, Cal. Labor Code § 1197 and applicable Wage Orders; (3) failure to pay separation wages, Cal. Labor Code §§ 201-203; (4) failure to furnish accurate wage statements, Cal. Labor Code § 226; (5) unfair competition law violations, Cal. Bus. & Profs. Code § 17200, et seq.; and (6) a claim for civil penalties under the Private Attorneys General Act (“PAGA”), Cal. Labor Code § 2699. (Id.) The FAC is premised on Setton Pistachio’s rounding policy. On August 8, 2019, Ali moved to remand this action back to state court. (Doc. 7.) Setton Pistachio opposed the motion. (Doc. 9.) Following briefing, including an order for supplemental declarations, the district court denied the motion for remand on December 18, 2019. (Doc. 37.) On February 3, 2020, Ali again moved to remand the action to state court, which Setton Pistachio opposed. (Docs. 42, 44.) The motion was referred to the undersigned for findings and recommendations, which were issued on February 4, 2021. (Doc 51.) The district court adopted the findings and recommendations, over Ali’s objections, and denied Ali’s second motion for remand on March 30, 2021. (Doc. 53.) On July 2, 2021, the Court issued a Preliminary Scheduling Order, which set a briefing schedule for any class certification motion. (Doc. 57.) On February 25, 2022, consistent with the Scheduling Order, Ali filed the instant motion for class certification, along with a request for judicial notice. (Docs. 61, 62.) Setton Pistachio filed both an opposition to the class certification motion and evidentiary objections on April 29, 2022. (Doc. 67.) Ali filed a reply and evidentiary objections on July 1, 2022. (Doc. 72.) Thereafter, on July 8, 2022, Setton Pistachio filed objections to Ali’s reply. (Doc. 73.) Ali responded on July 14, 2022. (Doc. 74.) FACTUAL BACKGROUND1 Setton Pistachio processes pistachios at its facility in Terra Bella, California, which is a 200-acre campus-like facility with approximately twenty buildings and multiple fields. (Doc. 61- 1 at p. 9.) Setton Pistachio employs workers in multiple departments, including production, maintenance, shipping, quality assurance, pest control and administration. (Doc. 67-2, Declaration of Janice Fowler (“Fowler Decl.”) at ¶ 10.) Ali worked as an hourly employee for Setton Pistachio, primarily as a hand sorter on a conveyor belt line.2 Relevant Work Shift Policies and Practices Ali alleges that she and other similarly situated employees have not been paid, during the relevant period, for all time worked, including overtime wages, as a result of Setton Pistachio improperly rounding time worked by its employees. (See FAC at ¶¶ 11, 26.) Setton Pistachio’s hourly employees are generally divided between both day and night-shift crews. (Fowler Decl. at ¶ 10.) Employees are scheduled to work eight-hour shifts with a 30-minute meal period. Employees use a finger/hand scan to clock-in and clock-out at a time clock. During a portion of the relevant class period, there were multiple time clocks located throughout the Terra Bella campus. (Doc. 61-1 at p. 10.) The time clocks record the actual time entries, but for purposes of payroll, Setton Pistachio utilizes a fifteen (15) minute rounding policy, where actual time entries are adjusted to the nearest quarter hour. No time entry is rounded up or down by more than seven minutes, meaning that if an employee clocks in up to seven (7) minutes before their shift begins, then the time entry is rounded up to the actual shift time, and if an employee clocks in up to seven (7) minutes after their shift begins, then the time entry is rounded down to the actual shift time. (Fowler Decl. at ¶ 3.) Setton Pistachio’s policy states “Employees should not work or punch in more than seven (7) minutes before or seven (7) minutes after their shift.” (See Doc. 61-1 at p.

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Ali v. Setton Pistachio of Terra Bella, Inc., (E.D. Cal. 2023).

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