Osuna v. Spectrum Security Services, Inc.

CourtCalifornia Court of Appeal
DecidedMay 27, 2025
DocketB338047
StatusPublished

This text of Osuna v. Spectrum Security Services, Inc. (Osuna v. Spectrum Security Services, 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
Osuna v. Spectrum Security Services, Inc., (Cal. Ct. App. 2025).

Opinion

Filed 5/27/25 CERTIFIED FOR PUBLICATION

IN THE COURT OF APPEAL OF THE STATE OF CALIFORNIA

SECOND APPELLATE DISTRICT

DIVISION SIX

EDGAR OSUNA, 2d Civ. No. B338047 (Super. Ct. No. Plaintiff and Appellant, 2023CUOE015333) (Ventura County) v.

SPECTRUM SECURITY SERVICES, INC.,

Defendant and Respondent.

Due to the systemic underenforcement of the Labor Code, the Labor Code Private Attorneys General Act of 2004 (Labor Code, 1 § 2698 et seq.; PAGA) deputizes employees to stand in the shoes of the state to pursue civil penalties on behalf of themselves and other “aggrieved employees.” (Arias v. Superior Court (2009) 46 Cal.4th 969, 980 (Arias).) So long as they were employed by the alleged violator and personally suffered at least one Labor Code violation, aggrieved employees have standing to bring representative PAGA actions. (Kim v. Reins International

1 Statutory references are to the Labor Code. California, Inc. (2020) 9 Cal.5th 73, 81-84 (Kim).) No more is required. The Legislature recently adopted Assembly Bill No. 2288 (2023-2024 Reg. Sess.), which amended portions of section 2699. Among other changes, Assembly Bill No. 2288 “requir[es] an aggrieved employee to have personally suffered the alleged violations within [PAGA’s] one-year statute of limitations.” (Sen. Com. on Judiciary, Rep. on Assem. Bill No. 2288 (2023-2024 Reg. Sess.) as amended June 21, 2024, pp. 15-16.) Because those amendments apply only to lawsuits filed on or after June 19, 2024, however, they are inapplicable here. (See Stats. 2024, ch. 44, § 1.) All references to section 2699 in this opinion are to the version in effect during the proceedings below and define an “ ‘aggrieved employee’ ” as “any person who was employed by the alleged violator and against whom one or more of the alleged violations was committed.” (See § 2699, former subd. (c); Stats. 2016, ch. 31, § 189.) Edgar Osuna sued Spectrum Security Services, Inc., for purported violations of the Labor Code. He asserted five individual and class claims, and a sixth representative PAGA claim. The trial court dismissed Osuna’s class claims, sent his individual claims to arbitration, and sustained Spectrum’s demurrer to his representative PAGA claim without granting leave to amend. It concluded that Osuna lacks standing to bring the PAGA claim because he did not suffer a Labor Code violation during the one-year statute of limitations period for recovering civil penalties. Osuna challenges that conclusion on appeal, contending he is an aggrieved employee with standing to assert a representative PAGA claim. We agree. In concluding otherwise, the trial court

2 erroneously grafted requirements related to PAGA’s one-year statute of limitations for recovering civil penalties onto the definition of “aggrieved employee.” Given the adoption of Assembly Bill No. 2288 (2023-2024 Reg. Sess.), we publish this opinion to reinforce the standing requirements under former section 2699. We reverse the portion of the order sustaining Spectrum’s demurrer to Osuna’s representative PAGA claim. FACTUAL AND PROCEDURAL HISTORY The facts are taken from Osuna’s first amended complaint (FAC), which we accept as true in reviewing the trial court’s order sustaining Spectrum’s demurrer to Osuna’s PAGA claim. (Blank v. Kirwan (1985) 39 Cal.3d 311, 318 (Blank).) Osuna worked for Spectrum from October 2011 to February 2022. During his tenure Spectrum allegedly committed Labor Code violations against Osuna and other employees. The violations against other employees purportedly continued after Osuna’s employment terminated. In August 2023, Osuna notified the Labor and Workforce Development Agency (LWDA) of Spectrum’s alleged failure to: (1) provide compliant meal and rest periods (citing §§ 226.7 & 512), (2) pay minimum and overtime wages (citing §§ 510 & 1194), (3) reimburse business expenses (citing § 2802), (4) furnish accurate wage statements (citing § 226), and (5) timely pay final wages upon separation (citing §§ 201-203). The notice was submitted on behalf of Osuna “and all current and former non-exempt employees employed by Spectrum.” Osuna sued Spectrum when the LWDA did not respond to his notice within the statutory period. The operative FAC, filed in January 2024, includes a representative PAGA claim based on the underlying violations identified in Osuna’s LWDA notice, and

3 individual and class claims based on the same allegedly unlawful conduct. Spectrum demurred to the PAGA claim in Osuna’s FAC. It argued the applicable one-year statute of limitations bars the claim because Osuna did not provide the LWDA with notice of the alleged Labor Code violations until 18 months after his employment ended. Spectrum also argued Osuna lacks standing to bring his PAGA claim because he was not employed during the time he sought to represent other aggrieved employees. (Citing Robinson v. Southern Counties Oil Co. (2020) 53 Cal.App.5th 476 (Robinson).) It urged the trial court to sustain the demurrer without granting leave to amend. The court agreed with Spectrum that Osuna lacks standing to bring his PAGA claim:

“Only an ‘aggrieved employee’ may bring a PAGA action. ‘ “[A]ggrieved employee” means any person who was employed by the alleged violator and against whom one or more of the alleged violations was committed.’ [Citation.] ‘The violations for which penalties are sought are determined by the allegations of the complaint [[c]itations].’ [Citation.]

“By its terms, the PAGA claims pleaded in the [FAC] are limited to those occurring within the ‘operative limitations period.’ The statute of limitations for PAGA claims is one year. [Citations.] Thus, where a plaintiff’s employment is terminated, [they have] one year to file a PAGA notice with the LWDA for Labor Code violations occurring during employment or upon discharge. [Citations.]

4 “[Osuna] worked for Spectrum until February 2, 2022. . . . The [FAC] alleges that [he] filed his LWDA notice on August 3, 2023.

“Therefore, the PAGA claims pleaded in the amended complaint are those occurring within the one year prior to August 3, 2023. Because [Osuna’s] last day of employment was well before that, he did not personally sustain a Labor Code violation pleaded in the amended complaint. He is, therefore, not an ‘aggrieved employee’ as to any of the pleaded claims, and he consequently lacks standing to assert those claims.”

The court accordingly sustained Spectrum’s demurrer to the PAGA claim in the FAC without granting leave to amend. 2 DISCUSSION Appealability Before turning to the issue of representative PAGA standing, we must resolve the threshold issue of appealability. Spectrum contends we should dismiss Osuna’s appeal because “an order sustaining a demurrer to [fewer] than all of the [claims] in a complaint is not immediately appealable.” (Citing North American Chemical Co. v. Superior Court (1997) 59 Cal.App.4th 764, 773.) It also contends the “death knell” doctrine—an exception to this general rule—is inapplicable here because Osuna has not shown that the trial court’s order was “a de facto

2 The court also granted Spectrum’s motion to dismiss Osuna’s class claims and compel arbitration of his individual claims. Osuna does not challenge these portions of the court’s order in this appeal.

5 final judgment for absent plaintiffs.” (Quoting In re Baycol Cases I & II (2011) 51 Cal.4th 751, 759 (Baycol).) We disagree with Spectrum’s contentions. In its order the trial court dismissed Osuna’s class claims. Osuna does not challenge those dismissals here. The issue, therefore, is whether the death knell doctrine permits Osuna to challenge the portions of the order sustaining the demurrer to his representative PAGA claim. We conclude it does.

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Osuna v. Spectrum Security Services, Inc., Counsel Stack Legal Research, https://law.counselstack.com/opinion/osuna-v-spectrum-security-services-inc-calctapp-2025.