Otsuka v. Polo Ralph Lauren Corp.

251 F.R.D. 439, 2008 U.S. Dist. LEXIS 81262, 2008 WL 3285765
CourtDistrict Court, N.D. California
DecidedJuly 8, 2008
DocketNo. C 07-02780 SI
StatusPublished
Cited by10 cases

This text of 251 F.R.D. 439 (Otsuka v. Polo Ralph Lauren Corp.) is published on Counsel Stack Legal Research, covering District Court, N.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Otsuka v. Polo Ralph Lauren Corp., 251 F.R.D. 439, 2008 U.S. Dist. LEXIS 81262, 2008 WL 3285765 (N.D. Cal. 2008).

Opinion

ORDER GRANTING PLAINTIFFS’ MOTION FOR CLASS CERTIFICATION

SUSAN ILLSTON, District Judge.

Plaintiffs have filed a motion for class certification. The motion is scheduled for hearing on July 11, 2008. Pursuant to Civil Local Rule 7-l(b), the Court finds this matter appropriate for resolution without oral argument, and hereby VACATES the hearing. Having considered the arguments of the parties and the papers submitted, and for good cause shown, the Court hereby GRANTS plaintiffs’ motion to certify the class.

BACKGROUND

The subject of this litigation is an employment dispute over unpaid wages brought by former retail sales employees against defendants Polo Ralph Lauren Corporation, Polo Retail, LLC, Polo Retail Corporation, and Fashions Outlet of America, who operate 28 full-price and outlet stores in the state of California. On May 30, 2006, plaintiffs Ann Otsuka, Janis Keefe, Corrine Phipps, and Justin Kiser filed a putative class action complaint in state court against defendants. Defendants removed the action to federal court on May 29, 2007, on grounds that this Court has either diversity jurisdiction or jurisdiction pursuant to the Class Action Fairness Act. The complaint was amended multiple times in order to add named plaintiff Renee Davis, remove plaintiff Kiser, and make other adjustments, such that the operative complaint is now the Third Amended Complaint (“TAC”), which was filed by stipulation of the parties in March 2008.

Plaintiffs have brought suit on behalf of all former California employees of defendants who worked as sales associates or cashiers and were injured by defendants’ violation of employment laws from May 30, 2002 to the present. TAC at ¶ 10, 43. The gravamen of the complaint is that defendants failed to provide rest breaks, failed to pay employees for off-the-clock time spent inside the stores, improperly classified all sales associates as commission salespeople who are exempt from premium overtime compensation, and improperly used an arrears program in which sales associates who did not meet minimum commission requirements were subject to reduced earnings on future commissions above the minimum requirements. Plaintiffs contend that defendants use a single employee handbook for all California stores, and that defendants’ policies and practices are standardized throughout California in both retail and outlet stores. See, e.g., TAC at ¶ 45. One of these practices, plaintiffs contend, is to discourage or prevent employees from taking required rest breaks. See, e.g., TAC at 135, 41. Another practice is to conduct loss-prevention inspections (i.e. bag checks for stolen merchandise) on all employees every time they leave the store, such as at the end of their shifts or to take lunch breaks. See, e.g., TAC at ¶ 11; Kitchin Deck ex. 12 at 25 (2002 employee handbook describing the required inspections). Plaintiffs allege that these inspections only occur after an employee has clocked out, and that employees often have to wait for 10-15 minutes, and sometimes longer, for a manager to show up at the back door to conduct the inspection. TAC at ¶¶ 27, 34, 40. Plaintiffs also allege that defendants treated all salespeople at retail stores as exempt from overtime compensation, even though many such employees did not sell enough merchandise to be considered exempt commissioned employees, and failed to conduct the promised “reconciliations” to determine whether the employees [443]*443actually were exempt. TAC at ¶ 11. These allegations are supported in large part by deposition testimony of the named plaintiffs and by declarations filed by absent class members, though competing declarations contesting many of these allegations have been filed by current employees on behalf of defendants.

The complaint alleges the following causes of action on behalf of all members of the putative class: failure to pay wages, including overtime wages; breach of contract; failure to pay all wages due upon separation from employment; failure to provide rest breaks; failure to maintain accurate pay records; and unfair business practices. The complaint also alleges additional causes of action on behalf of two subclasses of plaintiffs. The first subclass consists of former sales associates who were misclassified as exempt from premium overtime compensation (“the misclassified subclass”), while the second subclass consists of former sales associates who were required to participate in the arrears program (“the arrears subclass”).1 The complaint alleges a cause of action for fraud for the misclassified subclass and a cause of action for violation of California Labor Code § 221 for the arrears subclass.

Plaintiff Otsuka worked as a sales associate at the Palo Alto retail store in 2004. She alleges that defendants denied her overtime compensation, required her to participate in the arrears program, required her to wait for bag inspections without compensation, and discouraged her from taking rest breaks. See TAC at ¶¶ 13-20. Plaintiff Phipps worked as a sales associate at the San Francisco retail store in 2004. She alleges that defendants denied her overtime compensation, required her to participate in the arrears program, and required her to wait for bag inspections without compensation. See TAC at ¶¶ 21-27. Plaintiff Keefe worked as a sales associate at the San Francisco retail store in 2004 and 2005. She alleges that defendants denied her overtime compensation, required her to participate in the arrears program, required her to wait for bag inspections without compensation, and discouraged her from taking rest breaks. See TAC at ¶¶ 28-35. Plaintiff Davis worked at the Cabazon factory outlet store in 2002, 2003, and 2004. She alleges that defendants did not pay all overtime compensation due to her, required her to participate in the arrears program, required her to wait for bag inspections without compensation, and discouraged her from taking rest breaks. See TAC at ¶¶ 36-42. All named plaintiffs except Otsuka now move for class certification.

LEGAL STANDARD

The decision whether to certify a class is committed to the discretion of the district court within the guidelines of Federal Rule of Civil Procedure 23. See Cummings v. Connell, 316 F.3d 886, 895 (9th Cir.2003). A court may certify a class if a plaintiff demonstrates that all of the prerequisites of Rule 23(a) have been met, and that at least one of the requirements of Rule 23(b) have been met. See Fed.R.Civ.P. 23; see also Valentino v. Carter-Wallace, Inc., 97 F.3d 1227, 1234 (9th Cir.1996). A class may be certified only “if the trial court is satisfied, after a rigorous analysis, that the prerequisites of Rule 23(a) have been satisfied.” Gen. Tel. Co. of the S.W. v. Falcon, 457 U.S. 147, 161, 102 S.Ct. 2364, 72 L.Ed.2d 740 (1982). The burden is on the plaintiff to establish that the Rule 23(a) and Rule 23(b) requirements have been met. Zinser v. Accufix Research Inst., Inc., 253 F.3d 1180, 1186 (9th Cir.2001).

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Bluebook (online)
251 F.R.D. 439, 2008 U.S. Dist. LEXIS 81262, 2008 WL 3285765, Counsel Stack Legal Research, https://law.counselstack.com/opinion/otsuka-v-polo-ralph-lauren-corp-cand-2008.