Hamideh v. Wells Fargo Bank, N.A. CA4/1

CourtCalifornia Court of Appeal
DecidedMay 12, 2022
DocketD078537
StatusUnpublished

This text of Hamideh v. Wells Fargo Bank, N.A. CA4/1 (Hamideh v. Wells Fargo Bank, N.A. CA4/1) is published on Counsel Stack Legal Research, covering California Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hamideh v. Wells Fargo Bank, N.A. CA4/1, (Cal. Ct. App. 2022).

Opinion

Filed 5/12/22 Hamideh v. Wells Fargo Bank, N.A. CA4/1 NOT TO BE PUBLISHED IN OFFICIAL REPORTS California Rules of Court, rule 8.1115(a), prohibits courts and parties from citing or relying on opinions not certified for publication or ordered published, except as specified by rule 8.1115(b). This opinion has not been certified for publication or ordered published for purposes of rule 8.1115.

COURT OF APPEAL, FOURTH APPELLATE DISTRICT

DIVISION ONE

STATE OF CALIFORNIA

ASHRAF O. HAMIDEH et al., D078537

Plaintiffs and Appellants,

v. (Super. Ct. No. 37-2017- 00045253-CU-OE-CTL) WELLS FARGO BANK, N.A.,

Defendant and Respondent.

APPEAL from a judgment of the Superior Court of San Diego County, Katherine A. Bacal, Judge. Affirmed. Mashiri Law Firm, Alex Asil Mashiri; The Jami Law Firm and Tamim Jami, for Plaintiffs and Appellants. Kading Briggs, Theresa A. Kading and Katherine A. Akamine, for Defendant and Respondent. Appellants Ashraf Hamideh and Pouya Abdolrasoul filed a representative action under the Private Attorney General Act (PAGA) (Labor Code,1 § 2698 et seq.) against Wells Fargo Bank, N.A. (Wells Fargo), alleging the company violated the Labor Code by failing to provide compliant meal breaks to nonexempt employees. The case proceeded to a bench trial, after which the court decided Hamideh and Abdolrasoul (collectively “Plaintiffs”) failed to demonstrate they were aggrieved employees because they had not established a violation as to themselves. In reaching its conclusion, the court declined to apply a rebuttable presumption of liability against Wells Fargo based on the information contained in time records. After the court entered judgment, the Supreme Court published its opinion in Donohue v. AMN Services, LLC (2021) 11 Cal.5th 58 (Donohue). There, our high court held that a rebuttable presumption of liability based on time records is applicable in class actions at the summary judgment stage. (Id. at pp. 61, 78.) Plaintiffs appeal the judgment, contending the trial court prejudicially erred by (1) failing to apply at trial a rebuttable presumption of liability based on time records; (2) failing to consider Wells Fargo’s automatic payment of a meal premium for any noncompliant meal break as an adoptive admission; (3) concluding Wells Fargo’s written meal policy is lawful; (4) concluding “Abdolrasoul was never scheduled for a meal period to start later than the end of the fifth hour”; and (5) making the aforementioned allegedly-erroneous decisions, which cumulatively resulted in prejudice. We conclude that even if the trial court erred by failing to apply a rebuttable presumption of liability based on time records, the error was harmless. We further conclude that the court did not abuse its discretion in denying admission of hearsay evidence as an adoptive admission, and it correctly concluded Wells Fargo’s meal period policy is lawful. We also find

1 Further statutory references are to the Labor Code unless otherwise specified. 2 sufficient evidence supports the court’s factual conclusion regarding Abdolrasoul’s meal period schedule, and that there is no prejudice resulting from cumulative error in the matter before us. Accordingly, we will affirm the judgment. I FACTUAL AND PROCEDURAL BACKGROUND A. The Plaintiffs Hamideh was employed by Wells Fargo as a nonexempt banker from May 3, 2012, through July 28, 2017, first at the Murrieta main branch and then at the Ynez Road branch. He worked at the Ynez Road branch from late March 2017 through July 28, 2017. Abdolrasoul worked as a teller and lead teller at an in-store branch of Wells Fargo in a Vons in Scripps Ranch from February 20, 2015, through December 29, 2017. B. The Complaint Hamideh filed a complaint against Wells Fargo in November 2017 as a PAGA representative. He was joined by Abdolrasoul as a co-plaintiff in filing a first amended complaint on January 5, 2018. They filed a second amended complaint (SAC) on August 15, 2018. The SAC was brought on behalf of allegedly aggrieved non-exempt Wells Fargo employees who received at least one meal premium payment from September 18, 2016, through December 31, 2019. The SAC alleged that Wells Fargo violated sections 226.7 and 512, by failing to provide meal periods, and by engaging in a standard practice of failing to relieve employees for meal breaks or discouraging employees from taking them, instead paying employees an additional hour of pay. The SAC’s single cause of action sought civil penalties under section 2699. The case eventually proceeded to a bifurcated bench trial.

3 C. Time Recording System Wells Fargo uses a timekeeping system called Time Tracker, on which it trains new employees. Wells Fargo trained Hamideh and Abdolrasoul on the system when they were hired. Each day, employees manually type into Time Tracker the start and end times of their workdays, as well as the start

and end times of their meal breaks.2 After employees save their entries, the program reviews the information and identifies any work shifts that indicate the employee failed to record a meal period, the employee’s meal period was shorter than 30 minutes, or the employee’s meal period began after the end of the fifth hour of work. If any of these three events occurs, Time Tracker prompts the California employees to select between two options: (1) “I had no opportunity to take my compliant meal period”; or (2) “I was provided the opportunity to take my compliant meal period.” The Time Tracker training manual defines a “compliant meal period” as “[a]t least 30 minutes in length and uninterrupted,” “[b]egin[ning] no later than the end of [the] 5th hour of working time,” and which the employee “cannot be encouraged to skip, delay or shorten.” At the end of each week, the Time Tracker prompts employees to certify that the information is accurate. After the employee completes inputting time and certifies that the information is correct, Time Tracker entries are automatically transmitted to payroll. When nonexempt employees select the option that says they did not have an opportunity to take a compliant meal period, the system automatically pays a meal period premium, which is an extra hour of pay (see § 226.7, subd. (c)).

2 Wells Fargo suggests employees enter their time on a daily basis, but employees have the entire week to input the information. 4 Wells Fargo does not investigate employee reports that they had no opportunity to take a compliant meal period; the system issues compensation automatically based solely on employee reporting. One Wells Fargo supervisor testified that he learned a couple times that nonexempt employees had selected they did not have the opportunity for a meal period, but he did nothing to investigate on those occasions. And he had never asked an employee why they selected any particular answer in response to the prompt. D. Wells Fargo’s Policies and Systems Wells Fargo posted a copy of its “California Meal & Break Policy,” contained in Exhibit 165, at every work location in California, including the branches where Hamideh and Abdolrasoul worked. This document states, “Nonexempt team members can work no more than 5 hours without taking an uninterrupted meal period of at least 30 minutes. The first meal period must begin no later than the end of your 5th hour of work.” It also says, “If you would like to take your meal period earlier than scheduled, after the end of the 5th hour of work (or 10th hour for the second meal period), or voluntarily skip your meal period you must consult with your manager.” The company’s intranet Teamworks Manager Center’s “Meal & Rest Periods” pages, Exhibit 155, states, “Nonexempt team members can work no more than 5 hours without being provided the opportunity to take an uninterrupted meal period of at least 30 minutes.

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Hamideh v. Wells Fargo Bank, N.A. CA4/1, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hamideh-v-wells-fargo-bank-na-ca41-calctapp-2022.