Case 2:19-cv-03448-JWH-E Document 154 Filed 03/30/22 Page 1 of 16 Page ID #:4767
1 2 3 4 5 6 7 8 UNITED STATES DISTRICT COURT 9 FOR THE CENTRAL DISTRICT OF CALIFORNIA 10 11 MAURITTA D. WALLIS, Case No. 2:19-cv-03448-JWH-Ex
12 Plaintiff, MEMORANDUM OF DECISION 13 v. PURSUANT TO RULE 52(a) OF THE FEDERAL RULES OF CIVIL 14 GREYHOUND LINES, INC., PROCEDURE FIRST TRANSIT, INC., 15 FIRST GROUP AMERICA, INC., and DOES 1 TO 100, 16 Defendants. 17 18 19 20 21 22 23 24 25 26 27 28 Case 2:19-cv-03448-JWH-E Document 154 Filed 03/30/22 Page 2 of 16 Page ID #:4768
1 I. BACKGROUND 2 This action arises from the decision of Defendant Greyhound Lines, Inc., 3 to terminate the employment of Plaintiff Mauritta Wallis. Wallis, an African- 4 American woman, worked for Greyhound for more than 20 years before 5 Greyhound fired her in 2018. Wallis asserts claims for relief for (1) wage-and- 6 hour violations; (2) rest break violations; (3) meal break violations; (4) waiting 7 time penalty; (5) unfair competition; (6) employment discrimination in violation 8 of the Fair Employment and Housing Act, Cal. Gov’t Code § 12940(a) 9 (“FEHA”); and (7) racial harassment in violation of FEHA.1 10 On October 30, 2020, the Court dismissed Defendants First Transit, Inc. 11 and FirstGroup America, Inc. from this action.2 The Court denied Greyhound’s 12 motion for summary judgment on January 19, 2021.3 The parties filed their 13 respective trial briefs on May 31.4 On June 3, the Court commenced a seven-day 14 bench trial. On the fourth day of trial, the Court dismissed fictitiously named 15 Defendants Does 1 to 100.5 Having considered the evidence, the arguments of 16 the parties, and the record in this action, the Court makes the following Findings 17 of Fact and Conclusions of Law pursuant to Rule 52 of the Federal Rules of Civil 18 Procedure. 19 II. FINDINGS OF FACT 20 In bench trials, Rule 52(a) requires a court to “find the facts specially and 21 state separately its conclusions of law thereon.” Fed. R. Civ. P. 52(a). “One 22
23 1 See Compl. (the “Complaint”) [ECF No. 1-2]. The Complaint’s caption purports that Wallis asserts eight claims for relief, but the text of the Complaint 24 includes only seven. 25 2 See Joint Stipulation to Dismiss First Transit, Inc. and FirstGroup America, Inc. [ECF No. 44]. 26 3 See Order Denying Mot. for Summ. J. [ECF No. 60]. Unless otherwise noted, all dates are in 2021. 27 4 See Pl.’s Trial Br. [ECF No. 122]; Def.’s Trial Br. [ECF No. 123]. 28 5 See Civil Minutes—Trial [ECF No. 131]. -2- Case 2:19-cv-03448-JWH-E Document 154 Filed 03/30/22 Page 3 of 16 Page ID #:4769
1 purpose behind Rule 52(a) is to aid the appellate court’s understanding of the 2 basis of the trial court’s decision. This purpose is achieved if the district court’s 3 findings are sufficient to indicate the factual basis for its ultimate conclusions.” 4 Vance v. American Haw. Cruises, Inc., 789 F.2d 790, 792 (9th Cir. 1986). The 5 Court complies with those directives and sets forth its Findings of Fact as 6 follows:6 7 A. Background 8 1. Greyhound is a provider of intercity bus transportation. 9 Greyhound operates a terminal in downtown Los Angeles (the “L.A. 10 Terminal”) that is open to the public. 11 2. The L.A. Terminal is a unionized work location. Greyhound’s 12 unionized employees have redress through their union and grievance 13 procedures, and those employees are subject to the terms and conditions of the 14 Collective Bargaining Agreement in place at that location. 15 3. Wallis is an African-American woman who worked for Greyhound 16 in the L.A. Terminal from 1994 until April 2018. She began her employment 17 with Greyhound as a ticket agent. By 2015, Wallis served as a Service Lead 18 Representative. 19 4. Jorge Ochoa served as Wallis’s immediate supervisor from 2013 20 until Wallis’s termination. Ochoa is a Hispanic man. Ochoa had broad 21 discretionary powers, and he exercised substantial discretionary authority at 22 Greyhound. For example, when unionized employees had employment related 23 issues or disputes, the union representative took those concerns to Ochoa. 24 5. In March 2014, Wallis filed a lawsuit (the “Previous Lawsuit”) 25 against Ochoa and Greyhound for, among other things, discrimination. After 26 6 To the extent that any of the Findings of Fact herein are considered 27 Conclusions of Law, they are adopted as such. Likewise, to the extent that any of the Conclusions of Law in Part III are considered Findings of Fact, they are 28 adopted as such. -3- Case 2:19-cv-03448-JWH-E Document 154 Filed 03/30/22 Page 4 of 16 Page ID #:4770
1 approximately 16 weeks, that lawsuit was resolved through the Offer of 2 Judgment procedure provided in Rule 68 of the Federal Rules of Civil 3 Procedure. 4 6. Wallis subsequently raised one complaint that, in retaliation for 5 filing her Previous Lawsuit, she was not receiving the assignments that she 6 wanted. Greyhound investigated Wallis’s complaint and found no corroboration 7 for it. 8 B. Wallis’s Termination 9 7. On January 30, 2018, a customer complained to Greyhound (the 10 “Complaining Customer”) regarding that customer’s missing luggage. The 11 Complaining Customer further asserted that she had to pay an extra $20 to 12 exchange her ticket to continue her travel. 13 8. Greyhound investigated that incident and found that Wallis was the 14 employee who demanded that the Complaining Customer pay an extra $20. 15 Greyhound also concluded that Wallis collected $20 in cash from the 16 Complaining Customer but that Wallis failed to report her receipt of that $20 to 17 Greyhound. 18 9. Greyhound expanded its investigation and found several more 19 instances in which Wallis collected money from customers but failed to report 20 those transactions to Greyhound. Greyhound possessed videotape evidence of 21 those incidents. 22 10. During Greyhound’s investigation, Wallis’s union represented her. 23 11. Ultimately, Greyhound concluded that Wallis did not have a 24 credible and consistent explanation for the above-described incidents. On that 25 ground, Greyhound terminated Wallis’s employment. At no point during 26 Greyhound’s investigation did Wallis complain to Greyhound that the 27 investigation was improperly based upon her race, nor did she complain about 28 any of the alleged wage-and-hour violations at issue in this lawsuit. -4- Case 2:19-cv-03448-JWH-E Document 154 Filed 03/30/22 Page 5 of 16 Page ID #:4771
1 12. Greyhound’s investigation was thorough, and its conclusion that 2 Wallis committed theft was reasonable and was based upon credible evidence. 3 C. Wage-and-Hour Issues 4 13. Throughout her tenure with Greyhound, Wallis recorded her own 5 hours worked. Wallis repeatedly confirmed the accuracy of the hours that she 6 reported working. 7 14. Greyhound paid Wallis for all of the hours that Wallis reported 8 working. 9 15. Wallis never complained to Greyhound about working off-the-clock 10 at any time within the statute of limitations period governing her wage-and-hour 11 claims in this action. 12 16. Wallis served as a Shop Stewart at the L.A. terminal from 2013 13 until the termination of her employment. As Shop Stewart, Wallis liaised 14 between unionized employees and Ochoa when any employment-related issues 15 or disputes arose regarding those employees. While serving as Shop Stewart, 16 Wallis frequently raised complaints on behalf of other unionized employees to 17 Greyhound’s management, including Ochoa. 18 17. Wallis received Greyhound’s employee handbook and other 19 training. Wallis was well aware of her ability to raise any complaints to 20 Greyhound, including unpaid work time or missed or interrupted meal periods 21 or rest breaks. 22 18. Wallis routinely recorded, and Wallis was paid, overtime wages. 23 19. Wallis made numerous complaints to Greyhound over the course of 24 her employment with the company, thereby demonstrating that she was willing 25 to advocate for herself. None of Wallis’s complaints during the relevant years 26 was for unpaid overtime wages. 27 20. Wallis did not present sufficient evidence to corroborate that she 28 performed off-the-clock work. -5- Case 2:19-cv-03448-JWH-E Document 154 Filed 03/30/22 Page 6 of 16 Page ID #:4772
1 21. Wallis routinely took timely and complete rest breaks and meal 2 periods. 3 22. None of Wallis’s complaints during the relevant years was for 4 untimely, missed, or interrupted rest breaks or meal periods. 5 23. Wallis did not file grievances with her union or with Greyhound for 6 alleged unpaid wages, for meal period violations, or for rest break violations 7 during the relevant time period. 8 D. Harassment 9 24. While Wallis worked under Ochoa, Ochoa and other employees 10 used racial epithets regarding African-American employees. For example, 11 Kristine West—an African-American employee of Greyhound and a colleague of 12 Wallis—once heard Ochoa say, “I don’t understand this fucking nigger.” 13 Ochoa and other employees used racial epithets including “nigger,” “nigger 14 lover,” “monkey,” and “stupido Negra.” 15 25. Ochoa treated Wallis and West with suspicion, hostility, and undue 16 harshness. Ochoa treated Wallis and West more harshly than he treated 17 employees who were not African-American. Ochoa was more hostile to African- 18 American employees (such as West and Wallis) and African-American 19 customers than he was to other employees and customers. Ochoa told 20 employees and customers that Wallis and West were “problems.” Ochoa 21 laughed when a customer called Wallis an “ugly old Black ass monkey.” 22 26. Ochoa’s behavior caused West and Wallis to feel alienated and 23 isolated at work. 24 27. Wallis complained to union officials about the differential treatment 25 of African-American employees at Greyhound, including the derogatory 26 remarks directed at them. Wallis made similar complaints to Greyhound 27 management. 28 -6- Case 2:19-cv-03448-JWH-E Document 154 Filed 03/30/22 Page 7 of 16 Page ID #:4773
1 28. Some of Wallis’s interactions with Ochoa were so hostile that 2 Wallis would leave work in tears. 3 29. Despite Wallis’s many complaints, Greyhound neither took 4 appropriate corrective action nor properly investigated her complaints. 5 III. CONCLUSIONS OF LAW 6 The Court complies with Rule 52(a) by setting forth its Conclusions of 7 Law as follows: 8 A. Discrimination Based upon Race 9 Wallis’s sixth claim for relief is for racial discrimination in violation of the 10 FEHA. Cal. Gov’t Code § 12940(a). California has adopted the three-stage 11 burden-shifting test for discrimination claims established by the United States 12 Supreme Court in McDonnell Douglas Corp. v. Green, 411 U.S. 792 (1973). See 13 Sandell v. Taylor–Listug, Inc., 188 Cal. App. 4th 297, 307 (2010) (citing Guz v. 14 Bechtel National, Inc., 24 Cal. 4th 317, 354–56 (2000)). That framework applies 15 to wrongful termination claims based upon race discrimination. See Guz, 24 16 Cal. 4th at 354–56; Sandell, 188 Cal. App. 4th at 307; Nielsen v. Trofholz Techs., 17 Inc., 750 F. Supp. 2d 1157, 1164 (E.D. Cal. 2010), aff’d, 470 F. App’x 647 (9th 18 Cir. 2012). 19 Under the McDonnell Douglas burden-shifting test: 20 [A] plaintiff must first establish a prima facie case of discrimination. 21 If the plaintiff establishes a prima facie case, the burden then shifts to 22 the defendant to articulate a legitimate nondiscriminatory reason for 23 its employment decision. Then, in order to prevail, the plaintiff must 24 demonstrate that the employer’s alleged reason for the adverse 25 employment decision is a pretext for another motive which is 26 discriminatory. 27 Lowe v. City of Monrovia, 775 F.2d 998, 1005 (9th Cir. 1985) (citing McDonnell 28 Douglas, 411 U.S. at 802–05). -7- Case 2:19-cv-03448-JWH-E Document 154 Filed 03/30/22 Page 8 of 16 Page ID #:4774
1 “Although intermediate evidentiary burdens shift back and forth under 2 this framework, ‘[t]he ultimate burden of persuading the trier of fact that the 3 defendant intentionally discriminated against the plaintiff remains at all times 4 with the plaintiff.’” Reeves v. Sanderson Plumbing Prod., Inc., 530 U.S. 133, 143 5 (2000) (quoting Texas Dep’t of Cmty. Affs. v. Burdine, 450 U.S. 248, 253 (1981)). 6 Wallis has not met that burden. Greyhound presented evidence of its 7 good faith investigation and termination of Wallis due to theft and dishonesty. 8 That investigation was thorough, and its conclusions were based upon 9 substantial evidence. Wallis was supported by her union and was afforded due 10 process. Accordingly, the Court finds in favor of Greyhound on Wallis’s sixth 11 claim for relief. 12 B. Race-Based Harassment 13 1. Liability 14 a. Elements 15 To establish a claim for harassment based upon race and gender under 16 FEHA, a plaintiff must prove all of the following: (1) plaintiff was employed by 17 defendant; (2) plaintiff was subjected to harassing conduct because of race 18 and/or gender; (3) the harassing conduct was severe or pervasive; (4) a 19 reasonable person in plaintiff’s circumstances would have considered the work 20 environment to be hostile, intimidating, offensive, oppressive, or abusive; 21 (5) plaintiff considered the work environment to be hostile, intimidating, 22 offensive, oppressive, or abusive; (6) a supervisor engaged in the conduct, or 23 that employer knew or should have known of the conduct and failed to take 24 immediate and appropriate corrective action; (7) plaintiff was harmed; and 25 (8) the conduct was a substantial factor in causing plaintiff’s harm. See Lyle v. 26 Warner Bros. Television Prods., 38 Cal. 4th 264, 279 (2006); see also Fisher v. San 27 Pedro Peninsula Hosp., 214 Cal. App. 3d 590, 608 (1989). In addition, the 28 conduct at issue “must be both objectively and subjectively offensive . . . .” -8- Case 2:19-cv-03448-JWH-E Document 154 Filed 03/30/22 Page 9 of 16 Page ID #:4775
1 Faragher v. City of Boca Raton, 524 U.S. 775, 787 (1998) (citing Harris v. Forklift 2 Sys., Inc., 510 U.S. 17, 21-22 (1993)). 3 To determine whether an environment was hostile or abusive, a court 4 must examine “the frequency of the discriminatory conduct; its severity; 5 whether it is physically threatening or humiliating, or a mere offensive 6 utterance; and whether it unreasonably interferes with an employee’s work 7 performance.” Haley v. Cohen & Steers Cap. Mgmt., Inc., 871 F. Supp. 2d 944, 8 956 (N.D. Cal. 2012). Harassment based upon race and gender is unlawful when 9 it is “so severe or pervasive that it created a work environment abusive to 10 employees because of their” race or gender. Harris, 510 U.S. at 22. The 11 California Supreme Court has held that, by implication, the FEHA “makes the 12 employer strictly liable for harassment by a supervisor.” State Dept. of Health 13 Servs. v. Superior Ct., 31 Cal. 4th 1026, 1041 (2003). 14 Wallis proved that she was unlawfully harassed in violation of FEHA. As 15 discussed in the Findings of Fact, Wallis was a Greyhound employee who was 16 harassed due to her race. The Court finds that a reasonable African-American 17 person who was subjected to the racist language to which Wallis was subjected 18 would have considered the work environment to be hostile, oppressive, and 19 abusive. The evidence also establishes that Wallis herself felt this way. Wallis’s 20 supervisor was among the participants in the harassment, and Greyhound knew 21 or should have known about the conduct. Greyhound failed to take the 22 appropriate corrective action, and Wallis suffered as a result. 23 b. Continuing Violation Doctrine 24 In addition, under the continuing violation doctrine, Wallis is not barred 25 from recovering for the unlawful discriminatory and harassing conduct that 26 occurred outside of the limitations period. The continuing violation doctrine 27 provides that “an employer is liable for actions that take place outside the 28 limitations period if these actions are sufficiently linked to unlawful conduct that -9- Case 2:19-cv-03448-JWH-E Document 154 Filed 03/30/22 Page 10 of 16 Page ID #:4776
1 occurred within the limitations period.” Blue Fountain Pools & Spas Inc. v. 2 Superior Ct. of San Bernardino Cnty., 53 Cal. App. 5th 239, 250 (2020) (quoting 3 Yanowitz v. L’Oreal USA, Inc., 36 Cal. 4th 1028, 1056 (2005)). 4 Wallis proved that discriminatory and harassing conduct occurred within 5 the applicable limitations period. Wallis further proved that she experienced the 6 alleged discriminatory and harassing conduct continuously from around 2013 7 until her termination. That evidence is sufficient to show the requisite 8 continuous conduct for the continuing violation doctrine to apply. See id.; 9 Birchstein v. New United Motor Mfg., Inc., 92 Cal. App. 4th 994, 1001–02, 1006 10 (2001). Accordingly, the Court finds Greyhound liable on Wallis’s seventh 11 claim for relief. 12 2. Damages Award 13 a. Compensatory Damages 14 In actions for harassment under FEHA, “the plaintiff may recover those 15 damages generally available in noncontractual actions.” State Dep’t of Health 16 Servs. v. Superior Ct., 31 Cal. 4th 1026, 1042 (2003) (quotation omitted). 17 Specifically, a court “may award unlimited compensatory and punitive 18 damages.” Murillo v. Rite Stuff Foods, Inc., 65 Cal. App. 4th 833, 842 (1998). A 19 plaintiff may collect compensatory damages for emotional distress brought on by 20 an employer’s FEHA violations. See Taylor v. Trees, Inc., 58 F. Supp. 3d 1092, 21 1103 (E.D. Cal. 2014) (citing Peralta Cmty. Coll. Dist. v. Fair Emp. & Hous. Com., 22 52 Cal. 3d 40, 48 (1990)). “Emotional distress [refers to] the full gamut of 23 intangible mental suffering, including not only physical pain, but also fright, 24 nervousness, grief, anxiety, worry, mortification, shock, humiliation, indignity, 25 embarrassment, apprehension, terror or ordeal.” Peralta, 52 Cal. 3d at 48 n.4. 26 To recover compensatory damages for emotional distress, “there is no 27 requirement that the ‘emotional distress’ be severe.” Taylor, 58 F. Supp. 3d at 28 1103. -10- Case 2:19-cv-03448-JWH-E Document 154 Filed 03/30/22 Page 11 of 16 Page ID #:4777
1 The Court concludes that Wallis is entitled to compensatory damages for 2 emotional distress. The finder of facts “is entrusted with vast discretion in 3 determining the amount of damages to be awarded,” so long as recovery is not 4 grossly proportionate to the harm at issue. Bertero v. Nat’l Gen. Corp., 13 Cal. 3d 5 43, 64 (1974). Greyhound provides the Court with no guidance regarding how 6 to calculate compensatory damages. Wallis cites several cases, but those cases 7 involve instances in which the harassment victims developed mental disorders as 8 a result of the harassment.7 See Bihun v. AT&T Info. Sys., Inc., 13 Cal. App. 4th 9 976, 997 (1993), as modified on denial of reh’g (Mar. 25, 1993), and disapproved of 10 on other grounds by Lakin v. Watkins Associated Indus., 6 Cal. 4th 644 (1993) 11 (upholding $662,000 award for emotional damages in sexual harassment case in 12 which harassment led to victim developing an adjustment disorder); Watson v. 13 Dep’t of Rehab., 212 Cal. App. 3d 1271, 1294 (1989) (upholding $1,102,000 14 award in racial harassment case in which victim suffered emotional breakdown 15 in response to harassment). 16 The range of compensatory damages available to harassment victims is 17 vast. In contrast to the cases that Wallis cites, for example, the Court observes 18 that in 1990 the California Supreme Court surveyed various dollar amounts 19 awarded by the Fair Employment and Housing Commission for compensatory 20 damages due to harassment in violation of FEHA. See Peralta, 52 Cal. 3d at 49 21 n.5. Those awards ranged from $5,000 to $135,000. Id.; see also Weeks v. Baker 22 & McKenzie, 63 Cal. App. 4th 1128, 1137 (1998), as modified on denial of reh’g 23 (June 2, 1998) (awarding sexual harassment victim $50,000 from the harasser 24 and $50,000 from the employer). 25 26 27 7 See Pl.’s Proposed Findings of Fact and Conclusions of Law (“PFL”) 28 [ECF No. 153] 43:28-44:6. -11- Case 2:19-cv-03448-JWH-E Document 154 Filed 03/30/22 Page 12 of 16 Page ID #:4778
1 In her PFL, Wallis highlights how the harassment caused her general 2 “emotional distress.”8 The Court has expressly found that Wallis’s interactions 3 with Ochoa often left Wallis in tears.9 But no evidence suggests that Wallis was 4 harmed to the same extent as the harassment victims in Bihun or Watson. At the 5 same time, the harassment Wallis that endured in this case was extreme and 6 outrageous. Accordingly, the Court concludes that an award to Wallis of 7 $125,000 in compensatory damages for emotional distress is appropriate. 8 b. Punitive Damages 9 A plaintiff may recover punitive damages when “defendant has been 10 guilty of oppression, fraud, or malice . . . .” Cal. Civ. Code § 3294(a). Punitive 11 damages are properly awarded when the tortious conduct rises to levels of 12 extreme indifference to the plaintiff’s rights, a level which decent citizens 13 should not have to tolerate.” Wysinger v. Auto. Club of S. California, 157 14 Cal. App. 4th 413, 428 (2007) (quotation omitted). A corporate defendant is 15 only liable for punitive damages if it had “advance knowledge and conscious 16 disregard, authorization, ratification or act of oppression, fraud, or malice” 17 came from “an officer, director, or managing agent of the corporation.” 18 Cal. Civ. Code § 3294. “[S]upervisors who have broad discretionary powers 19 and exercise substantial discretionary authority in the corporation could be 20 managing agents.” Wysinger, 157 Cal. App. 4th at 428; see also Major v. W. Home 21 Ins. Co., 169 Cal. App. 4th 1197, 1221 (2009), as modified on denial of reh’g 22 (Jan. 30, 2009) (“supervisors who have broad discretionary powers and exercise 23 substantial discretionary authority in the corporation could be managing 24 agents”). The Court concludes that Ochoa was such a supervisor and that he 25 acted with malice in his harassment of Wallis. 26 27 8 Id. at 33:5. 28 9 See supra Finding 28. -12- Case 2:19-cv-03448-JWH-E Document 154 Filed 03/30/22 Page 13 of 16 Page ID #:4779
1 When calculating punitive damages, “[c]ourts often impose ‘sanctions of 2 double, treble and quadruple damages to deter and punish.’” Wysinger, 157 3 Cal. App. 4th at 429 (quoting State Farm Mut. Auto. Ins. Co. v. Campbell, 538 4 U.S. 408, 425 (2003)). “Such single-digit multipliers are more likely to comport 5 with due process, while still achieving the State’s goals of deterrence and 6 retribution, than awards with higher ratios.” Id. (internal quotations and 7 alterations omitted). To determine which multiplier to use, the Court must 8 consider the “degree of reprehensibility of the defendant’s conduct.” Roby v. 9 McKesson Corp., 47 Cal. 4th 686, 713 (2009), as modified (Feb. 10, 2010). To 10 determine reprehensibility, courts must consider whether: 11 the harm caused was physical as opposed to economic; the tortious 12 conduct evinced an indifference to or a reckless disregard of the 13 health or safety of others; the target of the conduct had financial 14 vulnerability; the conduct involved repeated actions or was an 15 isolated incident; and the harm was the result of intentional malice, 16 trickery, or deceit, or mere accident. 17 State Farm, 538 U.S. at 419. 18 Here, the harassment that Wallis endured was neither physical nor 19 economic; it evinced little if any indifference to Wallis’s physical health or 20 safety; it did take place over the course of repeated incidents; and the harm was 21 a result of intentional malice. Considering the balance of those factors, the 22 Court finds that a multiplier of two is sufficient to deter and punish Greyhound 23 from sanctioning future racial harassment. Accordingly, the Court awards 24 Wallis an additional $250,000 in punitive damages. 25 C. Unpaid Overtime Compensation 26 “Where an employer has no knowledge that an employee is engaging in 27 overtime work and that employee fails to notify the employer or deliberately 28 prevents the employer from acquiring knowledge of the overtime work, the -13- Case 2:19-cv-03448-JWH-E Document 154 Filed 03/30/22 Page 14 of 16 Page ID #:4780
1 employer's failure to pay for the overtime hours is not a violation . . . .” Jong v. 2 Kaiser Found. Health Plan, Inc., 226 Cal. App. 4th 391, 395 (2014). Here, Wallis 3 failed to prove either that she was not paid for overtime work or that she did not 4 prevent Greyhound from knowing about her uncompensated overtime work. 5 Accordingly, the Court finds in favor of Greyhound on Wallis’s first claim for 6 relief. 7 D. Meal and Rest Period Violations 8 California law prohibits employers from requiring employees “to work 9 during a meal or rest or recovery period . . . .” Cal. Lab. Code § 226.7. 10 California law expressly provides that: 11 [a]n employer shall not employ an employee for a work period of 12 more than five hours per day without providing the employee with a 13 meal period of not less than 30 minutes, except that if the total work 14 period per day of the employee is no more than six hours, the meal 15 period may be waived by mutual consent of both the employer and 16 employee. An employer shall not employ an employee for a work 17 period of more than 10 hours per day without providing the 18 employee with a second meal period of not less than 30 minutes, 19 except that if the total hours worked is no more than 12 hours, the 20 second meal period may be waived by mutual consent of the 21 employer and the employee only if the first meal period was not 22 waived. 23 Cal. Lab. Code § 512(a). An employer satisfies that statute’s requirements 24 when it “relinquishes control over [employees’] activities and permits them a 25 reasonable opportunity to take an uninterrupted 30-minute break . . . .” 26 Donohue v. AMN Servs., LLC, 11 Cal. 5th 58, 67 (2021) (internal quotation 27 omitted). While an employer must not impede or discourage an employee from 28 taking his or her break free of work, that employer is “not obligated to police -14- Case 2:19-cv-03448-JWH-E Document 154 Filed 03/30/22 Page 15 of 16 Page ID #:4781
1 meal breaks and ensure no work thereafter is performed.” Id. (internal 2 quotation omitted). Here, Wallis failed to prove that Greyhound violated those 3 requirements. Accordingly, the Court finds in favor of Greyhound on Wallis’s 4 second and third claims for relief. 5 E. Waiting Time Penalty 6 “If an employer discharges an employee, the wages earned and unpaid at 7 the time of discharge are due and payable immediately.” Cal. Lab. Code § 201. 8 “If an employer willfully fails” to pay a discharged employee in accordance with 9 California law, “the wages of the employee shall continue as a penalty from the 10 due date thereof at the same rate until paid or until an action therefor is 11 commenced; but the wages shall not continue for more than 30 days.” 12 Cal. Lab. Code § 203(a) (emphasis added). To be considered “willful,” an 13 “employer’s refusal to pay need not be based on a deliberate evil purpose to 14 defraud workmen of wages which the employer knows to be due.” Kao v. 15 Holiday, 12 Cal. App. 5th 947, 962–63 (2017) (internal quotation omitted). 16 Instead, “‘[w]illful’ merely means that the employer intentionally failed or 17 refused to perform an act which was required to be done.” Id. at 963 (quotations 18 and citations omitted) (emphasis omitted). However, “[a] good faith dispute 19 that any wages are due will preclude the imposition of waiting time penalties 20 under Labor Code Section 203.” Id. at 963 (quotations and citations omitted) 21 (emphasis added). Wallis first raised her allegations for additional compensation 22 by way of this lawsuit. The Court finds that this is a good faith dispute, and that 23 Greyhound did not willfully fail to pay Wallis any money owed to her. 24 Accordingly, the Court finds in favor of Greyhound on Wallis’s fourth claim for 25 relief. 26 F. Unfair Competition 27 California’s Unfair Competition Law (the “UCL”) prohibits business 28 acts that are “unlawful, unfair, or fraudulent . . . .” Cal. Bus. & Prof. Code -15- Case 2:19-cv-03448-JWH-E Document 154 Filed 03/30/22 Page 16 o0f16 Page ID #:4782
1|| § 17200. A business act violates the unlawful prong of the UCL if it “‘is 2|| forbidden by law.” McKell ». Washington Mut., Inc., 142 Cal. App. 4th 1457, 3|| 1474 (2006). Wallis alleges that Greyhound violated the UCL by failing to pay 4|| the wages it owed her.'° Wallis failed to prove that Greyhound unlawfully failed 5|| to pay wages it owed her. Accordingly, the Court finds in favor of Greyhound 6 || on Wallis’s fifth claim for relief. 7 IT IS SO ORDERED. MVM 9|| Dated: March 30, 2022 .
10 GNITED STATES DISTRICT JUDGE 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28| © —Complane 4429-3. -16-