Mora v. Big Lots Stores, Inc.

194 Cal. App. 4th 496, 124 Cal. Rptr. 3d 535, 17 Wage & Hour Cas.2d (BNA) 952, 2011 Cal. App. LEXIS 449
CourtCalifornia Court of Appeal
DecidedApril 18, 2011
DocketNo. B221949
StatusPublished
Cited by30 cases

This text of 194 Cal. App. 4th 496 (Mora v. Big Lots Stores, Inc.) is published on Counsel Stack Legal Research, covering California Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Mora v. Big Lots Stores, Inc., 194 Cal. App. 4th 496, 124 Cal. Rptr. 3d 535, 17 Wage & Hour Cas.2d (BNA) 952, 2011 Cal. App. LEXIS 449 (Cal. Ct. App. 2011).

Opinion

Opinion

PERLUSS, P. J.

Putative class representatives Ana Mora, David Seals, Timothy Luddington and Richard Handrich filed a consolidated amended complaint on behalf of themselves and others similarly situated against their former employer, Big Lots Stores, Inc., and its affiliate, PNS Stores, Inc. (collectively Big Lots), operators of 178 closeout retail stores in California, asserting a cause of action for failure to pay overtime compensation and [499]*499various other wage-and-hour, meal and rest-time claims, as well as a claim for unfair business practices. Plaintiffs assert Big Lots uniformly misclassifies its store managers as exempt employees based on their job description alone rather than on consideration of actual work performed, which involves a significant amount of time on nonexempt tasks. The trial court denied their motion to certify a class of present and former Big Lots store managers finding the company does not operate its stores in a standardized manner and has no systematic practice of misclassification of managers. In light of the great latitude properly afforded the trial court in granting or denying class certification, we affirm, finding no abuse of discretion.

FACTUAL AND PROCEDURAL BACKGROUND

1. The Consolidated Amended Complaint

In a consolidated amended complaint filed on March 2, 2007,1 Seals, Mora, Luddington and Handrich, on behalf of themselves and others similarly situated, allege Big Lots, an Ohio corporation that owns and operates large, closeout retail stores in California, has intentionally and improperly designated certain employees as “exempt” store managers in order to avoid payment of overtime wages and other benefits required by the Labor Code and Industrial Welfare Commission (IWC) wage orders.2 Plaintiffs allege, notwithstanding their designation as exempt, store managers spend the majority of their time during each workweek on nonexempt, nonmanagerial duties and do not exercise discretion and independent judgment in the performance of those managerial duties they do perform. They further allege store managers are required to work in excess of eight hours per day and more than 40 hours per week—“working overtime hours was and is required of all store managers to perform the tasks or meet the goals assigned to them”—yet they receive no payment for overtime wages or other required benefits. The complaint asserts causes of action for unpaid overtime, unpaid minimum wages, wages not paid upon termination, improper wage statements, missed [500]*500rest breaks, missed meal breaks, reimbursement of expenses, loss of unused vacation time, failure to maintain required payroll records and unfair business practices.

The consolidated amended complaint defines a proposed class of “[a]ll persons who are or have been employed as Store Managers in Big Lots Stores in the State of California from September 1, 2002 until final disposition of this lawsuit,” excluding for the period prior to February 4, 2004 individuals who had been class members in a prior overtime compensation action and who did not opt out from the settlement in that matter. The complaint alleges common questions of law and fact, including whether Big Lots misclassified class members as exempt from overtime laws and consequently failed to pay required overtime compensation, predominate over questions affecting only individual class members.

2. The Motion for Class Certification and Big Lots’s Opposition

Following substantial discovery the putative class representatives moved to certify the class. In support of their motion the putative class representatives presented deposition testimony from Big Lots’s designated corporate representative that the company has classified all its store managers in California as falling within the “executive exemption” of the governing IWC wage order, an exemption applicable to individuals who are “primarily engaged” in duties involving the management of a recognized subdivision of the business enterprise and who regularly direct the work of two or more other employees. (See IWC Wage Order 7-2001, § l(A)(l)(a)-(f).) Relying on declarations from 44 putative class members,3 the putative class representatives argued the evidence demonstrated that the basic job duties of store managers in California are the same regardless of location and that Big Lots runs all its stores in the state in a uniform and standardized manner. Strict compliance with corporate manuals and action plans, which set forth statewide policies and procedures, is required and such compliance is ensured by district managers, who supervise all store managers. In addition, training of store managers is standardized, and their job performance is evaluated on the same basis and on the same form regardless of purported store-to-store differences.

The putative class member declarations also averred that store managers are primarily engaged in nonexempt activities and routinely work more than 40 hours per week. As summarized in the memorandum filed in support of the motion for class certification, these declarations established managers [501]*501“typically spend more than 75% of their time performing the same physical labor and routine clerical tasks [as other, nonmanagerial ‘associates’ or employees], including stocking shelves, moving merchandise, working the cash register, building displays of merchandise, receiving and unloading trucks, ensuring that the store room is organized, and that Big Lots’ shelves, bathrooms, aisles, and floors are clean.”

The declaration of Andre Lark is illustrative. Lark, a store manager in Upland, California, from June 2004 to January 2006, declared, “I spent a significant majority of my time engaged in the same, non-managerial tasks as my non-management co-workers. That is, a significant majority of my time was spent performing such tasks as: Stocking shelves, unloading delivery trucks, unpacking boxes, assembling merchandise, displaying merchandise, responding to customers’ inquiries regarding the location, availability and/or pricing of merchandise, returning dropped or discharged merchandise to its appropriate display location, cleaning the store, ‘marking’ or pricing the merchandise, and cashiering. I estimate that at least seventy-five percent of my time was spent in these non-managerial tasks. For the most part, when I was engaged in these non-managerial tasks I was not directing the work of other employees.” Lark’s declaration also explained that, throughout his employment, “I was required to perform my job duties in accordance with procedures and requirements dictated by Big Lots, such as those procedures and requirements listed in the Big Lots company manual and in Big Lots’ training programs and materials. ... I was occasionally allowed to deviate from these procedures, but only under unusual circumstances and only if I could justify such deviation.” The declarations of the other store managers submitted in support of the certification motion were substantially similar to Lark’s.

The putative class representatives also submitted the declaration of Carl C. Hoffman, Ph.D., an expert in labor force behavior and survey research. Dr. Hoffman explained that survey research techniques can be used to measure the proportion of time employees spend on individual components of their job.

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Cite This Page — Counsel Stack

Bluebook (online)
194 Cal. App. 4th 496, 124 Cal. Rptr. 3d 535, 17 Wage & Hour Cas.2d (BNA) 952, 2011 Cal. App. LEXIS 449, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mora-v-big-lots-stores-inc-calctapp-2011.