Harper v. Charter Communications, LLC

District Court, E.D. California·Decided December 13, 2021·No. 2:19-cv-00902·Unknown

Opinion

LIONEL HARPER, et al., No. 2:19-CV-0902-WBS-DMC Plaintiffs, v. ORDER Defendant. Plaintiffs Lionel Harper, Daniel Sinclair, Hassan Turner, Luis Vasquez, and Pedro Abascal, who are proceeding with retained counsel, bring this civil action pursuant to, among other theories, 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 is Defendant’s motion to compel further responses to discovery served on Plaintiff’s Harper, Turner, Vasquez, and Abascal, ECF No. 207. The parties appeared before the undersigned for a hearing in Redding, California, on December 8, 2021, at 10:00 a.m. Jamin Soderstrom, Esq., appeared telephonically for Plaintiffs. Nathan Chapman, Esq., appeared telephonically for Defendant Charter Communications, LLC. After hearing arguments, the matter was submitted. / / / This action currently proceeds on Plaintiffs’ second amended complaint. See ECF No. 147. On October 13, 2021, the District Judge denied leave to file a third amended complaint. See ECF No. 201. In that order, the District Judge outlined the following factual background:

Charter is a broadband connectivity company and cable operator serving business and residential customers under the Spectrum brand, among others. Plaintiffs Harper and Sinclair worked as small/medium sized business Account Executives (“AEs”) at Charter’s Redding, California location. (SAC at ¶¶ 5-6, 12.) Plaintiffs Turner, Vazquez, and Abascal worked as Direct Sales Representatives (“DSRs”) at Charter’s Irwindale, Bakersfield, and Anaheim, California locations, respectively. (Id. at ¶¶ 7-9, 12.) Plaintiffs allege that Charter classifies AEs and DSRs as “exempt” employees. (See id. at ¶ 13.) Plaintiffs claim that Charter erroneously classified them as exempt employees by mistakenly classifying them as “outside salespersons.” (See id.; Cal. Code Regs. tit. 8, § 11070.) Under California law, “outside salespersons” are exempt from overtime, minimum wage, meal period, and rest period requirements. See Cal. Lab. Code § 1171. Importantly, under California case law, employees are only subject to the outside salesperson exception if their employer actually had an expectation that they spend more than half their time outside the office engaged in sales activities, and if that expectation was reasonable. See Ramirez v. Yosemite Water Co., 20 Cal. 4th 785, 790 (Cal. 1999). Plaintiffs’ claim is essentially that Charter did not actually expect them to spend 50% of their time outside of the office both during and after their training weeks, and that even if it did, that expectation was unreasonable given the number of tasks Charter expected them to complete that required them to be in the office. (See generally SAC (Docket No. 147).) Plaintiffs’ claims of failure to pay overtime wages, failure to provide meal periods or rest breaks (or premium wages in lieu thereof), and failure to provide accurate wage statements are derivative of their misclassification claim. Because Charter misclassified them, plaintiffs contend, Charter necessarily failed to pay them overtime and failed to provide necessary rest and meal breaks. (See id.) Plaintiffs further claim that Charter failed to pay them commission wages to which they were entitled and provided them with inaccurate and misleading wage statements. (Id.)

ECF No. 201, pgs. 2-3. At footnote 1, the District Judge added:

Plaintiffs also claim that Charter failed to pay them all wages owed upon termination, failed to provide them with employment records, and violated the California UCL. (See generally SAC (Docket No. 147).) Plaintiff Harper also brings a representative claim under PAGA on behalf of aggrieved employees, including plaintiffs, alleging the same aforementioned Labor Code violations. (See id.) ECF No. 201, pg. 3, n.1. The District Judge continued:

Plaintiffs seek to represent two classes of Charter employees: (1) all California employees who were classified as exempt outside salespersons, and (2) all California employees who were in positions eligible to earn commission wages. (See id. at ¶ 19.) ECF No. 201, pg. 3. On October 13, 2021, the District Judge also issued an order addressing Defendant’s motion to dismiss Plaintiffs’ second amended complaint. See ECF No. 203. In its motion, Defendant sought dismissal of Count Five, Count Nine, and Count Ten of the second amended complaint. See id. at 2. The District Judge denied Defendant’s motion as to Counts Five and Count Nine, without prejudice, and granted the motion as to Count Ten, but only insofar as the claim is based on alleged violations of California Labor Code §§ 226 and 1174(d) that occurred prior to July 11, 2017. See ECF No. 203, pg. 24. The District Judge issued an additional order on October 13, 2021, addressing Defendant’s motion to compel arbitration. See ECF No. 202. In that motion, Defendant sought: (1) to compel arbitration of Plaintiff Harper’s claims and stay the action pending arbitration; and (2) compel arbitration of claims by Plaintiffs Turner, Vasquez, and Abascal and dismiss those claims from the case. See id. at 2. The District Judge granted Defendant’s motion and stayed the action as to Counts One through Nine of the second amended complaint pending arbitration of individual claims raised by Plaintiff’s Harper, Turner, Vasquez, and Abascal. See id. at 24-25. On Plaintiffs’ counsel’s request at the hearing, the District Judge also stayed Plaintiff Sinclair’s individual claims pending arbitration. See id. The District Judge did not, however, stay Plaintiff Harper’s PAGA claim. See id. at 24. The District Judge held:

However, because a stay would impede vindication of California’s interests in enforcing the Labor Code through representative PAGA actions, discussed above, and because the PAGA claim represents a distinct “action” in this case, the court will not stay Harper’s PAGA claim. See Jarboe v. Hanlees Auto Grp., 53 Cal. App. 5th 539, 557 (1st Dist. 2020) (“Because a PAGA claim is representative and does not

/ / / belong to an employee individually, an employer should not be able dictate how and where the representative action proceeds.”) ECF No. 202, pg. 24. On November 30, 2021, the District Judge issued an order addressing Defendant’s motion for reconsideration of the October 13, 2021, order on Defendant’s motion to dismiss. See ECF No. 222. The District Judge amended his prior order to “clarify that the statue of limitations precluded Harper from challenging wage statement violations alleged to have occurred prior to September 14, 2017, rather than prior to July 11, 2017.” Id. at 7. The District Judge denied Defendant’s alternative request for certification of the prior order for interlocutory appeal. See id. at 8. On November 30, 2021, the District Judge also issued an order addressing Plaintiff Sinclair’s motion to lift the stay of proceedings as to his claims and a motion for class certification. See ECF No. 223. The District Judge granted the motion and lifted the stay of proceedings as to Plaintiff Sinclair’s claims. See id. at pg. 3. The District Judge also directed the parties to submit a stipulated briefing schedule as to a renewed motion for class certification. See id. As to scheduling, the District Judge’s November 15, 2021, order, issued pursuant to stipulation of the parties, is the most recent. See ECF No. 213. The order imposes the following schedule:

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

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