Castanon v. WinCo Holdings, Inc.

CourtDistrict Court, E.D. California
DecidedAugust 23, 2022
Docket2:20-cv-01656
StatusUnknown

This text of Castanon v. WinCo Holdings, Inc. (Castanon v. WinCo Holdings, Inc.) is published on Counsel Stack Legal Research, covering District Court, E.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Castanon v. WinCo Holdings, Inc., (E.D. Cal. 2022).

Opinion

1 2 3 4 5 6 7 8 UNITED STATES DISTRICT COURT 9 EASTERN DISTRICT OF CALIFORNIA 10 11 ESMERALDA CASTANON and JOHN No. 2:20-cv-01656-MCE-JDP DURON, on behalf of themselves and 12 all others similarly situated, 13 Plaintiffs, MEMORANDUM AND ORDER 14 v. 15 WINCO HOLDINGS, INC., an Idaho Corporation, doing business as WINCO 16 FOODS; and DOES 1-10, inclusive, 17 Defendants. 18 19 Through the present class action proceeding, Plaintiff Esmeralda Castanon 20 (“Plaintiff”)1 challenges various wage and hour practices utilized by her employer, 21 Defendant Winco Holdings, Inc., doing business as Winco Foods (“Defendant” or 22 “Winco”), both on her own behalf and on behalf of others similarly situated. According to 23 Plaintiff, Winco has failed 1) to pay its employees all wages owed, including overtime; 24 2) to provide legally compliant meal and rest periods; and 3) to pay all wages due upon 25 separation. Plaintiff further alleges that wage statements provided by Winco have been 26 legally non-compliant. 27 1 While John Duron was initially named as a Plaintiff along with Ms. Castanon, Duron was 28 dismissed from this action by Stipulation and Order filed July 16, 2021 (ECF No. 21). 1 Winco previously moved to dismiss Plaintiff’s First Amended Complaint (“FAC”) 2 on grounds that because the allegations contained therein were generic and lacked 3 specificity, they failed to state any legally cognizable claim under Federal Rule of Civil 4 Procedure Rule 12(b)(6).2 That Motion, which also moved to strike, in accordance with 5 Rule 12(f), the FAC’s class action allegations as formulaic and conclusory, was granted 6 in part and denied in part on September 30, 2021. ECF No. 22. Because Plaintiff was 7 accorded leave to amend, a Second Amended Complaint (“SAC”) was filed on 8 October 20, 2021. ECF No. 25. Now before the Court is an additional Motion to 9 Dismiss, or Alternatively to Strike, on the same grounds. As set forth below, that motion 10 is DENIED, except with regard to a portion of the Fourth Cause of Action, which is 11 GRANTED.3 12 13 BACKGROUND4 14 15 Winco operates at multiple locations in California as a retailer providing 16 supermarket products to consumers. Plaintiff was employed as a non-exempt customer 17 service employee between 2001 and 2019 (her title was Loss Prevention Agent) at 18 Winco’s location in Chico, California. 19 Plaintiff alleges that she, as well as all other non-exempt Winco employees 20 working in California, were required to check in and out of their shifts by using an 21 electronic time clock that rounded total time worked each day to the nearest fifteen- 22 minute inverval. While minutes were rounded to the closest fifteen-minute period (with 23 an employee working seven minutes rounded down but eight or more minutes rounded 24

25 2 All further references to “Rule” or “Rules” are to the Federal Rules of Civil Procedure unless otherwise noted.

26 3 Having determined that oral argument will not be of material assistance, the Court ordered this Motion submitted on the briefs in accordance with E.D. Local Rule 230(g). 27

4 The allegations in this section are drawn, at times verbatim, from the allegations of Plaintiff’s 28 SAC, ECF No. 25. 1 up), according to the SAC, Winco’s time clock also calculated seconds and always 2 rounded down to the nearest minute. Plaintiff consequently alleges that even if she 3 worked 55 seconds of any given minute the time would always revert to the previous 4 minute. Therefore, if Plaintiff or any other class member worked for 8 hours, 7 minutes 5 and 55 seconds, their time would be rounded down to 8 hours, with the same dichotomy 6 occurring not only for time worked between 7 and 8 minutes, but also between 22 and 7 23 minutes, 37 and 38 minutes, and 52 and 53 minutes. See SAC, ¶ 21. 8 Plaintiff alleges that by always rounding total seconds down to the previous 9 minute in this matter, Winco’s rounding policy systematically undercompensates its 10 employees and is not neutral on its face. Moreover, citing her own personal experience, 11 Plaintiff alleges that 43 percent of her shifts over 8 hours fell between 8:01 and 8:07, 12 hours as opposed to only 5 percent falling between 8:08 and 8:14, making it far more 13 likely that her time was rounded down rather than up. Plaintiff further alleges that some 14 80 percent of her total shifts worked from May of 2019 to July of 2019 were rounded 15 down. Id. at ¶ 24. Moreover, during the same period, Plaintiff specifically asserts she 16 worked in excess of 8 hours a day or 40 hours a week during the weeks ending on May 17 4, 11, 18, 25, 2-10, June 1. 8, 15, 22, 29, 2019, and July 6, 2019, and therefore would 18 have been entitled to time and a half pay during those periods. Id. at ¶ 27. 19 In addition to impacting overtime pay, Plaintiff also alleges she was entitled to 20 double time (working in excess of 12 hours a day or eight hours on the seventh day of 21 the workweek) on the weeks ending on January 28, 2017, February 25, 2017, April 21, 22 2017, May 5 and 19, 2017, and December 15, 2018, among others. Id. at ¶ 29. 23 As an alternative to Plaintiff’s claim that because the rounding practices employed 24 by Winco were not neutral, she and other class members were deprived of the total 25 wages they were owed, Plaintiff further points to bonuses that were not included in her 26 regular rate of pay for purposes of calculating overtime. According to Plaintiff, the 27 bonuses, which were in the form of gift cards, were non-discretionary in nature because 28 the only requirement for entitlement was that an employee was hired before a certain 1 date, have hours worked in the bonus period and be actively employed at the time a 2 particular bonus was paid. Id. at ¶ 31. Therefore, Plaintiff contends, the amounts paid 3 should have been factored into any overtime calculation. She points to one specific 4 instance, where she was paid a bonus of $109.46 during the pay period from April 22, 5 2018 to May 5, 2018, for worked performed in the 26 weeks prior to March 3, 2018. 6 Plaintiff avers that the bonus was not calculated within her regular rate of pay and, 7 because she worked 23.75 day overtime hours, 14 night overtime hours, 1.5 day double 8 time hours, and 3 double time night hours during the pay period, should have been 9 included in calculating those amounts. Id. at ¶ 32. 10 Plaintiff goes on to claim that she and others were also not provided lawful meal 11 and rest breaks and were not compensated for breaks that were missed. Specifically, 12 she asserts she was not provided a meal period as required when working shifts in 13 excess of five days on three separate occasions between May 5, 2019, and July 5, 14 2019. Id. at ¶ 33. Plaintiff further asserts that on another 13 occasions between May 16, 15 2019, and July 3, 2019, the meal breaks she did receive were not the 30-minute 16 uninterrupted period mandated by law. Plaintiff appears to allege that these failures 17 were due at least in part to company personnel policies prohibiting employees from 18 leaving their retail store for meal and rest breaks “without permission from management.” 19 Id. at ¶ 35. According to Plaintiff, she and others were impeded and/or discouraged from 20 taking breaks when a manager was either unavailable or could not be readily located. 21 In addition to alleging that Winco failed to pay wages owed and further failed to 22 provide mandated meal and rest breaks, Plaintiff also alleges a failure on Winco’s part to 23 provide accurate, lawful itemized wage statements to both herself and other class 24 members because the correct rates of pay were not properly itemized. Id. at ¶ 47.

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Bluebook (online)
Castanon v. WinCo Holdings, Inc., Counsel Stack Legal Research, https://law.counselstack.com/opinion/castanon-v-winco-holdings-inc-caed-2022.