Jimenez v. Young's Market Company, LLC

CourtDistrict Court, N.D. California
DecidedDecember 20, 2021
Docket3:21-cv-02410
StatusUnknown

This text of Jimenez v. Young's Market Company, LLC (Jimenez v. Young's Market Company, LLC) is published on Counsel Stack Legal Research, covering District Court, N.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Jimenez v. Young's Market Company, LLC, (N.D. Cal. 2021).

Opinion

1 2 3 4 UNITED STATES DISTRICT COURT 5 NORTHERN DISTRICT OF CALIFORNIA 6 7 SERGIO MEZA JIMENEZ, Case No. 21-cv-02410-EMC

8 Plaintiff, ORDER DENYING REMAND 9 v. Docket Nos. 33-35 10 YOUNG'S MARKET COMPANY, LLC, et al., 11 Defendants. 12 13 14 I. INTRODUCTION 15 In this case, Plaintiff Sergio Jimenez (“Plaintiff”) filed suit against his employers, 16 Defendants Young’s Market Company, LLC and Republic National Distributing Company, LLC 17 (“Defendants”) for violations of California’s Labor Codes. Plaintiff seeks civil penalties based on 18 alleged wage and hour violations under the Private Attorneys General Act (“PAGA”). The terms 19 and conditions of Plaintiff’s employment were subject to a collective bargaining agreement 20 (“CBA”). 21 Pending before the Court is an Order to Show Cause as to why this case should not be 22 remanded to State Court. Defendants argue that subsequent events after a valid removal do not 23 divest the court of subject matter jurisdiction and that preemption applies under Section 301 of the 24 Labor Management Relations Act (“LMRA”) due to the application of the CBA. Plaintiff argues 25 that an affirmative defense of preemption does not establish subject matter jurisdiction and that 26 there is no complete field preemption unless all of Plaintiff’s claims are preempted by the CBA. 27 Therefore, Plaintiff focuses his argument on his minimum wage claim, which he argues cannot be 1 by a CBA. 2 II. FACTUAL & PROCEDURAL BACKGROUND 3 A. Procedural Background 4 Plaintiff brought this class-action lawsuit against Defendants, asserting various causes of 5 actions under the California Labor Code. Plaintiff argues that Defendants failed to: pay minimum 6 and regular rate wages, pay overtime wages, provide meal periods, authorize and permit rest 7 periods, maintain accurate records of meal periods, timely pay all wages to terminated employees, 8 and maintain accurate wage statements. Docket No. 19 (“FAC”) at 1. On April 2, 2021, 9 Defendants removed this case under CAFA jurisdiction. See Docket No. 1. On June 16, 2021, 10 Plaintiff amended his complaint to add a PAGA cause of action. See FAC. Plaintiff later moved 11 to dismiss his class and individual claims without prejudice due to an arbitration agreement 12 containing a class action waiver. Docket No. 24 at 2. All class and individual claims were 13 subsequently dismissed such that the only remaining cause of action is for civil penalties under 14 PAGA. See Docket No. 27. Thereafter, the court issued an order to show cause as to why this 15 case should not be remanded to State Court. 16 B. Factual Background 17 Plaintiff alleges as follows in the FAC: 18 Plaintiff was an employee of Defendants and was typically scheduled to work 4 days in a 19 workweek, and typically in excess of 10 hours in a single workday. FAC at 5. During this time, 20 Defendants required Plaintiff to perform work “off-the-clock” by working during non-scheduled 21 hours, uncompensated. FAC at 6. For example, Defendants required Plaintiff to wait in line in 22 order to go through a security check, including a bag search, after clocking out each workday, and 23 after clocking out for meal breaks. Id. Further, Defendants did not satisfy the requirements for an 24 alternative workweek schedule at the location in which Plaintiff was employed. Id. Plaintiff also 25 received non-discretionary bonuses during their employment, but Defendant failed to include all 26 remuneration when determining the regular rate of pay for purposes of paying overtime premiums 27 at the correct rate of pay. Id. 1 the required 30-minute, continuous and uninterrupted, duty-free meal period, and was not 2 informed of his right to take a meal period by the end of the fifth hour of work, or, for shifts 3 greater than 10 hours, by the end of the tenth hour of work. Defendants did not have adequate 4 policies or practices to document and verify whether their employees were taking their required 5 meal periods. Id. Defendants also regularly required Plaintiff to work in excess of four 6 consecutive hours a day without Defendants authorizing and permitting them to take a 10-minute, 7 continuous and uninterrupted, rest period for every four hours of work. Id. Plaintiff also worked 8 in high temperatures without air conditioning and proper air ventilation, and Defendants failed to 9 provide training and sufficient water for Plaintiff. Id. 10 Plaintiff lastly argues that Defendants failed to timely pay Plaintiff and provide itemized 11 wage statements showing all his hours worked, wages earned, overtime hours, and wages for meal 12 and rest periods that were not authorized and permitted to take in accordance with California law. 13 Id. at 7. This led Plaintiff to believe that he was not entitled to be paid his minimum wages, 14 overtime wages, meal period premium wages, rest period premium wages and their correct 15 California rates. Id. Plaintiff therefore believed that he had been paid his minimum, overtime, 16 meal period premium, and rest period premium wages at the correct California rate even though 17 that was not the case. Id. The violations also hindered Plaintiff from determining the wages owed 18 to him before and during this action, making Plaintiff have to perform mathematical computations 19 to determine the unpaid wages, computations he would not have to make if the wage statements 20 were accurate. Id. at 7–8. The wage statements also inaccurately understated the wages, hours, 21 and wage rates; therefore, Plaintiff was paid less than the wages and wage rates to which he was 22 entitled. Id. Finally, this understatement of the wages caused Plaintiff to lose entitlement and/or 23 accrual of the full amount of Social Security, disability, unemployment, and other governmental 24 benefits. Id. 25 III. LEGAL STANDARD 26 “Federal courts are courts of limited jurisdiction, possessing only that power authorized by 27 Constitution and statute.” Gunn v. Minton, 568 U.S. 251, 256 (2013) (internal quotation marks 1 federal district court only if the federal court has subject matter jurisdiction over the case. See City 2 of Chi. v. Int'l Coll. of Surgeons, 522 U.S. 156, 163 (1997). “The propriety of removal . . . 3 depends on whether the case originally could have been filed in federal court.” Id. A case is 4 remanded to state court if at any time before final judgment it appears a removing court lacks 5 subject matter jurisdiction. See 28 U.S.C. § 1447(c); Int'l Primate Prot. League v. Adm'rs of 6 Tulane Educ. Fund, 500 U.S. 72, 87 (1991). The Defendant who seeks removal bears the burden 7 of establishing federal subject matter jurisdiction. See Emrich v. Touche Ross & Co., 846 F.2d 8 1190, 1195 (9th Cir.1988). This burden is substantial: “Federal jurisdiction must be rejected if 9 there is any doubt as to the right of removal[.]” Gaus v. Miles, Inc., 980 F.2d 564, 566 (9th Cir. 10 1992) (citing Libhart v. Santa Monica Dairy Co., 592 F.2d 1062, 1064 (9th Cir.1979)). 11 IV. DISCUSSION 12 A. Original CAFA Jurisdiction 13 Defendants argue that because this Court had CAFA jurisdiction over Plaintiff’s class 14 claims at the time of removal, the Court may maintain jurisdiction over Plaintiff’s later-added 15 PAGA claim. Docket No. 34 (“D’s Brief”) at 4–5.

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Bluebook (online)
Jimenez v. Young's Market Company, LLC, Counsel Stack Legal Research, https://law.counselstack.com/opinion/jimenez-v-youngs-market-company-llc-cand-2021.