Kai Liu v. Sealy Inc.

CourtDistrict Court, C.D. California
DecidedMay 9, 2025
Docket2:24-cv-05490
StatusUnknown

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

Bluebook
Kai Liu v. Sealy Inc., (C.D. Cal. 2025).

Opinion

1 O 2

6 UNITED STATES DISTRICT COURT 7 CENTRAL DISTRICT OF CALIFORNIA 8

9 KAI LIU and JASON L. CARBONNEAU, Case No.: 2:24-cv-05490-MEMF-AS individually, and on behalf of all others 10 similarly situated, ORDER GRANTING REQUEST FOR 11 JUDICIAL NOTICE [ECF NO. 21-3] AND Plaintiffs, DENYING MOTION TO REMAND [ECF 12 v. NO. 14]

13 SEALY, INC.; and DOES 1 through 10, 14 inclusive,

15 Defendants. 16 17 18

19 20 Before the Court is Plaintiffs’ Motion to Remand, ECF No. 14, and the Defendants’ Request 21 for Judicial Notice, ECF No. 21-3. For the reasons stated herein, the Court hereby GRANTS the 22 Request and DENIES the Motion. 23 24 25 / / / 26 / / / 27 / / / 28 / / / 1 INTRODUCTION 2 I. Background1 3 A. Factual Allegations2 4 Plaintiffs Kai Liu and Jason Carbonneau were hourly, non-exempt employees for Sealy, Inc. 5 (“Defendant” or “Sealy”; together with Does 1-10, “Defendants”) from approximately September 6 2019 through approximately January 2024 and from approximately July 2021 through approximately 7 February 2024, respectively. Compl. ¶ 7. Both Liu and Carbonneau are California residents. Id. 8 Defendants are business entities with their principal place of business in Los Angeles, California. Id. 9 ¶¶ 7, 9. As Sealy employees, Liu and Carbonneau typically worked in excess of eight hours in a 10 workday and generally worked at least five days in a workweek. Id. ¶ 13. 11 Due to certain policies, practices or procedures, Plaintiffs suffered various California Labor 12 Code (“Labor Code”) and California Business and Professional Code violations. Id. ¶¶ 14–20. In 13 particular, Defendants failed to pay Plaintiffs for all of the hours they worked, including minimum 14 wage and overtime wages; failed to provide Plaintiffs uninterrupted meal periods; failed to permit 15 Plaintiffs to take uninterrupted rest periods; failed to indemnify Plaintiffs for expenses incurred 16 during the discharge of their employment responsibilities; failed to timely pay Plaintiffs all final 17 wages upon separation from employment; and failed to furnish accurate, itemized wage statements. 18 Id. ¶¶ 14–20. 19 B. Procedural History 20 Plaintiffs filed suit in suit in Los Angeles County Superior Court on May 21, 2024. See ECF 21 No. 1 (“NOR”). Plaintiffs bring eight claims under California law: (1) failure to pay minimum 22 wages; (2) failure to pay overtime compensation; (3) failure to provide uninterrupted meal periods; 23 (4) failure to authorize and permit rest breaks; (5) failure to indemnify necessary business expenses; 24 (6) failure to timely pay final wages; (7) failure to provide accurate itemized wages statements; and 25

26 1 Plaintiffs filed a related lawsuit against Defendants seeking civil penalties under the Private Attorney Generals Act for the same wage and hour violations alleged in the instant case. (No. 2:25-cv-01215-MEMF- 27 AS.) 2 The following factual background is derived from the allegations in Plaintiffs’ Complaint, ECF No. 1, Ex.1 28 (“Complaint” or “Compl.”), except where otherwise indicated. The Court makes no finding on the truth of 1 (8) unfair business practices. See generally Compl. Plaintiffs bring this action on behalf of other 2 similarly situated hourly, non-exempt Sealy employees. 3 Defendants removed the action to this Court on June 28, 2024, under the jurisdiction of the 4 Class Action Fairness Act (“CAFA”). See NOR. Plaintiffs filed the instant motion to remand on 5 October 11, 2024. ECF No. 14 (“Motion” or “Mot.”). Defendants filed their opposition on October 6 25, 2024. ECF No. 21 (“Opposition” or “Opp’n”). Plaintiffs filed their reply on October 31, 2024. 7 ECF No. 22 (“Reply”). 8 On May 8, 2025, the Court held a hearing on the Motion after circulating its tentative order. 9 At the hearing, counsel for the Plaintiffs indicated that Plaintiffs wished to submit on the tentative. 10 REQUEST FOR JUDICIAL NOTICE 11 Federal Rule of Evidence 201(b) allows a court to take judicial notice of facts that are not 12 subject to reasonable dispute because the facts “(1) [are] generally known within the trial court’s 13 territorial jurisdiction; or (2) can be accurately and readily determined from sources whose accuracy 14 cannot be reasonably be questioned.” Fed. R. Evid. 201(b). Adjudicative facts that may be judicially 15 noticed include “undisputed matters of public record,” which differs from “disputed facts stated in 16 public records.” Lee v. City of Los Angeles, 250 F.3d 668 (9th Cir. 2001), overruled on other 17 grounds by Galbraith v. County of Santa Clara, 307 F.3d 1119, 1125–26 (9th Cir. 2002). 18 Defendants request this Court take judicial notice of the following documents in support of 19 their Opposition: 20 1. The 2021 Industrial Welfare Commission California Minimum Wage Order, MW-2021, 21 and 22 2. The 2024 Industrial Welfare Commission California Minimum Wage Order, MW-2024. 23 ECF No. 21-3. They also request that this Court take judicial notice of the minimum wage rates set 24 forth in these IWC Orders for the years 2020, 2021, 2022, 2023, and 2024. Id. The request is 25 unopposed. Indeed, Plaintiffs cite at least one of the Orders, MW-2024, as well as the very same 26 minimum wage rates in the Motion. See Mot. at 8 n2. 27 The Court may take judicial notice of Industrial Wage Orders of the California IWC. Mendoza v. 28 Home Depot, U.S.A. Inc., No. CV 09–05843 SJO (JCx), 2010 WL 424679, at *3 (C.D.Cal. Jan. 21, 1 2010) (“Defendant requests that the Court take judicial notice of ... [IWC] Wage Order 4–2001 ... 2 Industrial Wage Orders are [ ] properly subject to judicial notice … Accordingly, the Court takes 3 judicial notice of the … document[ ]”); see also City of Sausalito v. O'Neill, 386 F.3d 1186, 1223 n2 4 (9th Cir. 2004) (“We may take judicial notice of a record of a state agency not subject to reasonable 5 dispute.”) (citations omitted). Accordingly, the Court grants Defendants’ request and takes judicial 6 notice of IWC Wage Orders MW-2021 and MW-2024. 7 MOTION TO REMAND 8 I. Applicable Law 9 A. Federal Question Jurisdiction Under Section 301 Complete Preemption 10 A defendant may remove a state action to federal court if the federal court would have 11 original subject matter jurisdiction over the action. 28 U.S.C. § 1441. Federal courts have original 12 jurisdiction over “all civil actions arising under the Constitution, laws, or treaties of the United 13 States.” 28 U.S.C. § 1331. 14 Removal of a state action may be based on diversity or federal question jurisdiction. City of 15 Chi. v. Int’l Coll. of Surgeons, 522 U.S. 156, 163 (1997). A defendant who removes a case from state 16 court bears the burden of establishing federal jurisdiction. Abrego Abrego v. The Dow Chem. Co., 17 443 F.3d 676, 682 (9th Cir. 2006). Failure to satisfy this burden militates remand. Kelton Arms 18 Condo. Owners Ass’n, Inc. v. Homestead Ins. Co., 346 F.3d 1190, 1192 (9th Cir. 2003) (citation 19 omitted). 20 When determining whether an action involves a federal question, “a [district] court applies 21 the well-pleaded complaint rule.” Moore-Thomas v. Ala.

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Kai Liu v. Sealy Inc., Counsel Stack Legal Research, https://law.counselstack.com/opinion/kai-liu-v-sealy-inc-cacd-2025.