Harper v. Charter Communications, LLC

District Court, E.D. California·Decided May 5, 2021·No. 2:19-cv-00902·Unknown

Opinion

LIONEL HARPER, et al., No. 2:19-CV-0902-WBS-DMC Plaintiffs, v. ORDER et al., Defendants.

Plaintiffs Lionel Harper and Daniel Sinclair, who are proceeding with retained counsel, bring this civil action pursuant to California’s Private Attorney General Act (PAGA), California Labor Code § 2698, et seq. Plaintiffs allege violations of California statutory law with respect to the failure to pay certain wages. The matter proceeds in this Court based on diversity jurisdiction. Pending before the Court are separate discovery motions filed by Plaintiffs. See ECF Nos. 117 (Plaintiffs’ motion to compel) and 118 (Plaintiffs’ motion for sanctions). The parties appeared before the undersigned for a hearing in Redding, California, on April 28, 2021, at 10:00 a.m. Jamin Soderstrom, Esq., appeared telephonically for Plaintiffs. Kathryn McGuigan, Esq., and Zachary Shine, Esq., appeared telephonically for Defendant Charter Communications, LLC. / / / A. Plaintiffs’ Allegations This action currently proceeds on Plaintiffs’ first amended complaint against Defendants Charter Communications, LLC, and Charter Communications, Inc. (Charter). See ECF No. 45. Plaintiffs allege the following background facts:

8. Charter markets and sells various services, including television, Internet, and phone services, in California and nationwide. 9. Plaintiffs worked for Charter in California as salespersons. Harper worked for Charter from September 2017 to March 2018, and Sinclair worked for Charter from January 2015 to December 2016. Charter considered Plaintiffs to be “outside salespersons” during their entire employment and treated them as exempt employees. But Plaintiffs were not exempt outside salespersons. Plaintiffs were not asked or required to perform any “outside sales” activities during their training and they were thus misclassified as exempt during their training. Plaintiffs also were assigned numerous duties following their training that were not “outside sales” duties, the performance of which caused them not to spend a majority of their working hours each day or week performing outside sales. These non-outside sales duties included, but were not limited to, customer service and installation scheduling activities and work performed at Charter’s offices or at a home office. They were thus misclassified as exempt following their training as well. During their employment, Plaintiffs worked with numerous other employees who were subject to Charter’s same policies and practices and who were also misclassified as exempt outside salespersons, both during training and following training. Plaintiffs’ working experience gave them a thorough understanding of Charter’s employment policies and practices with respect to employees who Charter classified as exempt outside salespersons. 10. During their employment, Plaintiffs and other employees (including but not limited to outside salespersons) were also eligible to receive and did receive incentive compensation in the form of commission wages. But Charter’s commission payment practices and policies were unlawful. First, Charter did not give to Plaintiffs and other employees a signed copy of commission agreements that set forth the methods by which their commission wages would be computed and paid. Second, Charter did not obtain from Plaintiffs and other employees a signed receipt for any such agreements. Third, Charter failed to properly calculate and pay all commission wages that were due to Plaintiffs and other employees. And fourth, Charter paid commission wages on a monthly basis and/or weeks after the wages were earned instead of for the pay period in which they were earned. 11. Plaintiffs personally experienced and witnessed Charter engaging in these unlawful and unfair business practices and Charter continues to engage in these unlawful and unfair business practices to this day.

Id. at 3-4. / / / / / / Plaintiffs state they are bringing the action on behalf of themselves and “on behalf of two classes and various subclasses of employees who worked for Charter in California at any time between November 19, 2014, through final judgment. . . .” ECF No. 45, pg. 4. The alleged classes and subclasses are as follows:

Outside Salesperson Class

Unpaid Minimum Wages Subclass Unpaid Overtime Wages Subclass Meal Period Subclass Rest Break Subclass Wage Statement Subclass Termination Subclass Commission Class Underpaid Commission Subclass No Signed Agreement Subclass Wage Statement Subclass Termination Subclass

Id. at 4-6. In support of the class allegations, Plaintiffs also allege the following common questions of law and fact:

a. whether Charter improperly classified Plaintiffs and other outside salespersons as exempt during training; b. whether Charter improperly classified Plaintiffs and other outside salespersons as exempt after training;

c. whether Charter accurately kept track of Plaintiffs’ and other outside salespersons’ working hours; d. whether Charter paid minimum wages for all hours worked by Plaintiffs and other outside salespersons;

e. whether Charter paid overtime wages for all hours worked over 8 in a workday and 40 in a workweek by Plaintiffs and other outside salespersons;

f. whether Charter provided Plaintiffs and other outside salespersons with timely, uninterrupted, off-duty 30-minute meal periods each day they worked at least 5 hours in a workday, and a second meal period each day they worked at least 10 hours in a workday, or paid them an additional hour of pay at their regular rate on each day such meal periods were not provided;

/ / / g. whether Charter provided Plaintiffs and other outside salespersons with timely, uninterrupted, off-duty 10-minute rest breaks for every 4 hours of work, or major fraction thereof, or paid them an additional hour of pay at their regular rate on each day such rest periods were not provided; h. whether Charter paid Plaintiffs and other outside salespersons all wages due upon termination, or paid waiting time penalties when such wages were not timely paid; i. whether Plaintiffs and other employees who were eligible to be paid commission wages signed a written commission agreement, were given a signed copy of the agreement, and provided Charter with a signed receipt;

j. whether Plaintiffs and other employees who were eligible to be paid commission wages had wages underpaid, reduced, deducted, or clawed back based on terms they did not expressly agree to in a signed writing that was given to them; k. whether Charter timely paid all commission wages in the pay periods in which they were earned; and

l. whether Charter paid Plaintiffs and other employees who were eligible for commission wages all wages due upon termination, or paid waiting time penalties when such wages were not timely paid.

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Harper v. Charter Communications, LLC, (E.D. Cal. 2021).

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