Lopez v. S E Pipe Line Construction Company

District Court, S.D. California·Decided January 16, 2024·No. 3:23-cv-01626·Unknown

Opinion

JUAN ANGEL LOPEZ, on behalf of the Case No.: 23-cv-01626-AJB-BLM general public as private attorney general, ORDER GRANTING IN PART AND DENYING IN PART DEFENDANT’S Plaintiff, MOTION TO DISMISS v. (Doc. No. 7) S E PIPE LINE CONSTRUCTION COMPANY, a California Corporation; and DOES 1 through 50, inclusive,

Defendant.

Presently pending before the Court is Defendant S.E. Pipe Line Construction Co.’s motion to dismiss Plaintiff Juan Angel Lopez’s Complaint. (Doc. No. 7.) The motion is fully briefed, (Doc. Nos. 9 & 10), and the matter is suitable for determination on the papers. For the reasons stated herein, Defendant’s motion to dismiss is GRANTED IN PART AND DENIED IN PART. I. BACKGROUND Plaintiff brings this representative action for recovery of penalties under the Private Attorneys General Act of 2004 (“PAGA”) based on alleged violations of the California Labor Code and the Industrial Welfare Commission’s (“IWC”) Wage Orders. (Complaint (“Compl.”), Doc. No. 1.) Plaintiff specifically alleges the following underlying violations: (1) failure to pay minimum and overtime wages (Cal. Lab. Code §§ 510, 1194, & 1198); (2) failure to pay all wages earned and owed upon separation from employment (Cal. Lab. Code §§ 201, 202, & 203); (3) failure to pay wages timely during employment (Cal. Lab. Code § 204); (4) failure to provide accurate itemized wage statements (Cal. Lab. Code § 226); and (5) failure to reimburse necessary business expenses (Cal. Lab. Code § 2802). (See generally id.) A motion to dismiss under Rule 12(b)(6) tests the legal sufficiency of the pleadings and allows a court to dismiss a complaint upon a finding that the plaintiff has failed to state a claim upon which relief may be granted. Navarro v. Block, 250 F.3d 729, 732 (9th Cir. 2001). The court may dismiss a complaint as a matter of law for: “(1) lack of cognizable legal theory or (2) insufficient facts under a cognizable legal claim.” SmileCare Dental Grp. v. Delta Dental Plan of Cal., 88 F.3d 780, 783 (9th Cir. 1996) (citation omitted). However, a complaint survives a motion to dismiss if it contains “enough facts to state a claim to relief that is plausible on its face.” Bell Atl. Corp. v. Twombly, 550 U.S. 544, 570 (2007). Notwithstanding this deference, the reviewing court need not accept legal conclusions as true. Ashcroft v. Iqbal, 556 U.S. 662, 678 (2009). It is also improper for the court to assume “the [plaintiff] can prove facts that [he or she] has not alleged . . . .” Associated Gen. Contractors of Cal., Inc. v. Cal. State Council of Carpenters, 459 U.S. 519, 526 (1983). On the other hand, “[w]hen there are well-pleaded factual allegations, a court should assume their veracity and then determine whether they plausibly give rise to an entitlement to relief.” Iqbal, 556 U.S. at 679. The court only reviews the contents of the complaint, accepting all factual allegations as true, and drawing all reasonable inferences in favor of the nonmoving party. Thompson v. Davis, 295 F.3d 890, 895 (9th Cir. 2002). /// /// Under Federal Rule of Evidence 201, a court may take judicial notice of a fact that is “not subject to reasonable dispute because it: (1) is generally known within the trial court’s territorial jurisdiction; or (2) can be accurately and readily determined from sources whose accuracy cannot reasonably be questioned.” Fed. R. Evid. 201(b). Likewise, a court may take judicial notice of “documents not attached to a complaint . . . if no party questions their authenticity and the complaint relies on those documents.” Harris v. Cnty. of Orange, 682 F.3d 1126, 1132 (9th Cir. 2012). Judicial notice of matters of public record do not convert a motion to dismiss into a motion for summary judgment. See Lee v. City of Los Angeles, 250 F.3d 668, 689 (9th Cir. 2001) In support of its motion to dismiss, Defendant requests the Court take judicial notice of five exhibits: (1) a copy of a CBA entitled, “National Distribution Pipeline Agreement; (2) the “California Addendum to the National Distribution Agreement”; (3) the California Industrial Welfare Commission Wage Order 16, covering “Onsite Construction, Mining, Drilling and Logging Industries”; (4) dispatch orders for Plaintiff on February 4, 2021 and February 4, 2022 from his union, UA Local 250 – Los Angeles; and (5) a copy of the August 9, 2023 Order signed by the Honorable Jinsook Ohta of the United States District Court, Southern District of California. (Doc. No. 7-2 at 2–3.) Plaintiff does not oppose judicial notice. (See generally Doc. No. 9.) Regarding the first two exhibits, a court may take judicial notice of a CBA in evaluating a motion to dismiss. Hernandez v. Sysco Corp., No.16-cv-06723-JSC, 2017 WL 1540652, at *2 (N.D. Cal. Apr. 28, 2017); Jones v. AT&T, No. C 07-3888 JF (PR), 2008 WL 902292, at *2 (N.D. Cal. Mar. 31, 2008) (“the Court may take judicial notice of a CBA in evaluating a motion to dismiss.”). As such, the Court GRANTS judicial notice of Exhibits 1 and 2. Because Exhibits 3 and 4 are matters of public record, the Court GRANTS judicial notice for these documents. See, e.g., United States v. Ritchie, 342 F.3d 903, 909 (9th Cir. 2003) (finding that public records and records and reports of administrative agencies may be subject to judicial notice). The Court DENIES AS MOOT Defendant’s request for judicial notice of Exhibit 5, as the Court does not rely on this document in reaching its conclusion below. Defendant seeks to dismiss Plaintiff’s Complaint on the grounds that each of Plaintiff’s alleged Labor Code violations underlying his PAGA claim fails as a matter of law because Plaintiff is a union member subject to a collective bargaining agreement (“CBA”), and therefore, his claims are preempted by Section 301 of the Labor Management Relations Act (“LMRA”). (Doc. No. 7 at 2.) Defendant contends Plaintiff’s PAGA claims are also subject to dismissal based on the exclusions from coverage for employees covered by a CBA in the pertinent Labor Code sections and Wage Order, and because arbitration is the exclusive remedy for Plaintiff’s grievances under the binding CBA. (Id.) A. § 510 and IWC Wage Order 16-2001 Plaintiff’s PAGA claim seeks civil penalties in part for Defendant’s alleged violation of California Labor Code sections 510 and 1194, which regulate the payment of overtime and minimum wages, respectively. Cal. Lab. Code §§ 510, 1194. Defendant argues these underlying claims are preempted because Plaintiff is subject to a CBA that is expressly exempted from sections 510 and 1194. (Doc. No. 7 at 14.) First, section 510 provides that its requirements “do not apply to the payment of overtime compensation to an employee working pursuant to . . . (2) [a]n alternative workweek schedule adopted pursuant to a collective bargaining agreement pursuant to [California Labor Code] Section 514.” Cal. Lab. Code §

Lopez v. S E Pipe Line Construction Company, (S.D. Cal. 2024).

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