Carlos Diaz v. Chevron Corporation, et al.

District Court, N.D. California·Decided December 15, 2025·No. 3:25-cv-03327·Unknown

Opinion

CARLOS DIAZ, Case No. 25-cv-03327-EMC

Plaintiff, ORDER GRANTING IN PART AND v. DENYING IN PART DEFENDANT’S MOTION FOR SUMMARY CHEVRON CORPORATION, et al., JUDGMENT; AND GRANTING IN PART AND DENYING IN PART Defendants. PLAINTIFF’S MOTION FOR SUMMARY JUDGMENT Docket Nos. 27, 30

Plaintiff Carlos Diaz initiated this wage-and-hour lawsuit in state court back in 2020. Three companies were named as defendants: Chevron, Nooter,1 and Contra Costa Electric (“CCE”). The case was litigated in state court for approximately five years. During that time, Mr. Diaz settled his claims against Chevron and Nooter. Thus, at this juncture, the only remaining defendant is CCE. In April 2025, CCE removed the instant case from state to federal court. The Court allowed the removal to stand because Mr. Diaz did not move for a remand based on untimeliness (i.e., the Court could not sua sponte remand based on a nonjurisdictional defect). Now pending before the Court are cross-motions for partial summary judgment. The motions are targeted at only one of the claims brought by Mr. Diaz, specifically, his claim for violation of the California Private Attorneys General Act (“PAGA”). Having considered the parties’ briefs and accompanying submissions, as well as the oral argument of counsel, the Court hereby GRANTS in part and DENIES in part each party’s motion. CCE is an electrical construction firm. See Church Decl. ¶ 4. According to Mr. Diaz, he was a CCE employee and, in conjunction with that employment, worked at a Chevron refinery. See FAC ¶¶ 15-16. CCE had its employees work at two different Chevron refineries: one in Richmond, California, and the other in El Segundo, California. Mr. Diaz worked at the Richmond refinery, from approximately October 2018 to January 2019. See FAC ¶ 8. According to Mr. Diaz, CCE violated California wage-and-hour law primarily because it failed to pay him and others similarly situated for all hours worked. Mr. Diaz maintains that CCE failed to pay him and others similarly situated for employer-mandated travel – i.e., the time they spent traveling between the refinery parking lot/entrance and the actual worksite within the refinery – both at the beginning of the day and at the end of the day (the reverse route). Mr. Diaz also asserts that, at the end of the day, if they arrived at the parking lot before the end of the shift time and left the parking lot, their pay would be docked. See FAC ¶¶ 2, 33-36. The following is a summary of Mr. Diaz’s allegations of unlawful conduct as alleged in this suit: (a) Defendants’ policy and practice of failing to compensate Plaintiff and Employees for all hours worked at the start of their workdays, starting from the time Defendants required Plaintiff and Employees to report to designated parking lots for employer-mandated travel to their worksites; (b) Defendants’ policy and practice of not compensating Plaintiff and Employees for all hours worked at the end of their workdays, including through the time Plaintiff and Employees were able to depart after employer-mandated travel from their worksites back to designated parking lots; (c) When Plaintiff and Employees left early from designated parking lots, Defendants’ policy and practice of docking their pay in increments of time that exceeded the amount of time that Plaintiff and Employees left early from work . . . . FAC ¶ 2. Among the causes of action pled in the operative first amended complaint (“FAC”) is a violation of PAGA. This claim allows Mr. Diaz to seek relief on behalf of others besides himself – both those who worked at the Richmond refinery (as Mr. Diaz did) and those who worked at the the Richmond refinery. In his FAC, he added allegations about the El Segundo refinery. Chevron (prior to settling with Mr. Diaz) moved to strike the allegations related to the El Segundo refinery, arguing that such allegations were outside the scope of the PAGA notice. The state court rejected that argument. See Elster Decl., Ex. 10 (Order at 2) (“The fact that plaintiff’s LWDA notice happens to reference works at the Richmond refinery [specifically] does not preclude plaintiff from representing similarly situated workers at the El Segundo refinery.”). In the pending motions for partial summary judgment, the parties seek clarity as to which allegedly aggrieved CCE employees are entitled to PAGA relief. A. Legal Standard Federal Rule of Civil Procedure 56 provides that a “court shall grant summary judgment [to a moving party] if the movant shows that there is no genuine dispute as to any material fact and the movant is entitled to judgment as a matter of law.” Fed. R. Civ. P. 56(a). An issue of fact is genuine only if there is sufficient evidence for a reasonable jury to find for the nonmoving party. See Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 248-49 (1986). “The mere existence of a scintilla of evidence . . . will be insufficient; there must be evidence on which the jury could reasonably find for the [nonmoving party].” Id. at 252. At the summary judgment stage, evidence must be viewed in the light most favorable to the nonmoving party and all justifiable inferences are to be drawn in the nonmovant’s favor. See id. at 255. Where a defendant moves for summary judgment based on a claim for which the plaintiff bears the burden of proof, the defendant need only point to the plaintiff’s failure “to make a showing sufficient to establish the existence of an element essential to [the plaintiff’s] case.” Celotex Corp. v. Catrett, 477 U.S. 317, 322 (1986). Where a plaintiff moves for summary judgment on claims that it has brought (i.e., for which it has the burden of proof), it “must prove each element essential of the claims . . . by undisputed facts.” Cabo Distrib. Co. v. Brady, 821 F. Supp. 601, 607 (N.D. Cal. 1992); see also Fontenot v. Upjohn Co., 780 F.2d 1190, 1194 (5th Cir. 1986) (stating that, “if the movant bears an affirmative defense, he must establish beyond peradventure all of the essential elements of the claim or defense to warrant judgment in his favor”) (emphasis omitted). B. California Labor Code § 2699.6 As a general matter, the right to file a PAGA suit cannot be waived by contract. However, there is a provision in the Act – § 2699.6 – that “exempts construction workers from PAGA if a [collective bargaining agreement] covers wages, hours and working conditions and (1) has a grievance and arbitration procedure to redress Labor Code violations; (2) clearly waives PAGA; and (3) authorizes the arbitrator to award all remedies available under the Labor Code.” Oswald v. Murray Plumbing & Heating Corp., 82 Cal. App. 5th 938, 941 (2022). The relevant text from § 2699.6 is provided below:

(a) This part [i.e., Part 13 which consists of PAGA] shall not apply to an employee in the construction industry with respect to work performed under a valid collective bargaining agreement that expressly provides for the wages, hours of work, and working conditions of employees, premium wage rates for all overtime hours worked, and for the employee to receive a regular hourly pay rate of not less than 30 percent more than the state minimum wage rate, and the agreement does all of the following:

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Carlos Diaz v. Chevron Corporation, et al., (N.D. Cal. 2025).

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