Perez v. DXC Technology Services LLC

District Court, N.D. California·Decided September 14, 2020·No. 5:17-cv-06066·Unknown

Opinion

1 2 3 UNITED STATES DISTRICT COURT 4 NORTHERN DISTRICT OF CALIFORNIA 5 SAN JOSE DIVISION 6 7 PATRICIA A. PEREZ, Case No. 17-cv-06066-BLF

8 Plaintiff, ORDER GRANTING IN PART 9 v. WITHOUT LEAVE TO AMEND AND DENYING IN PART DEFENDANTS’ 10 DXC TECHNOLOGY SERVICES LLC, et MOTION TO DISMISS al., 11 [Re: ECF 65] Defendants. 12 13 Plaintiff Patricia A. Perez brings this putative class action against DXC Technology Services 14 LLC (“DXC”), Hewlett Packard Enterprise Company (“HPEC”), HP Enterprise Services, LLC 15 (“HPES”), and Enterprise Services, LLC (“ES”) (together, “Defendants”) alleging Defendants 16 failed to pay Plaintiff and putative class members for all hours worked in violation of the Fair Labor 17 Standards Act (“FLSA”) and for violations of various California wage and hour laws. See Third 18 Amended Complaint (“TAC”), ECF 64. Before the Court is Defendants’ motion to dismiss (1) all 19 of Plaintiff’s claims against Defendants DXC and HPEC and (2) Plaintiff’s ninth cause of action for 20 civil penalties pursuant to the Private Attorneys General Act (“PAGA”) against all Defendants. 21 Defendants’ Motion to Dismiss Plaintiff’s Third Amended Complaint (“Motion”), ECF 65. 22 The Court heard oral arguments on August 27, 2020 (the “Hearing”). For the reasons 23 discussed below, the Court GRANTS IN PART WITHOUT LEAVE TO AMEND AND DENIES 24 IN PART Defendants’ Motion. 25 I. BACKGROUND 26 Plaintiff alleges that on or about June 23, 2003, she was hired by “Defendants’ predecessors” 27 as “an hourly, non-exempt employee who worked in California.” TAC ¶ 22. Plaintiff claims that 1 non-exempt employees.” Id. ¶ 27. Plaintiff’s job duties included “reviewing a customer’s scope of 2 work, determining products and services that will meet the scope of work needed by the customer, 3 and pricing the entire purchase.” Id. According to Plaintiff, she and the putative class members 4 regularly worked more than eight hours each workday and more than forty hours per week, but they 5 did not receive overtime compensation. Id. ¶ 28. Plaintiff further alleges that she and the putative 6 class were not provided with meal or rest periods and that they were required to work through these 7 periods to complete work on time. Id. ¶¶ 31-34. Plaintiff also claims that Defendants “maintained 8 policies that provide for the unlawful forfeiture of vested vacation pay.” Id. ¶ 38. Plaintiff further 9 claims that she and the putative class members “were not provided with accurate wage statements.” 10 Id. ¶¶ 40-45. 11 On October 10, 2017, Plaintiff filed this suit in Santa Clara Superior Court. Not. of Removal, 12 ECF 1. On October 23, 2017, Defendants removed the action on federal question grounds citing 13 the Federal Fair Labor Standards Act claim. Id. On December 15, 2017, Plaintiff filed a first 14 amended complaint, adding a cause of action for civil penalties pursuant to the PAGA (Cal. Lab. 15 Code §§ 2698, et seq.). ECF 18. On January 26, 2018, Defendants filed a motion to dismiss on the 16 ground that Plaintiff was not employed by HPEC, DXC, among others. ECF 20. On March 6, 2018, 17 the parties stipulated to (1) participating in private mediation, (2) terminating the pending motion to 18 dismiss, and (3) staying the litigation pending mediation. ECF 25. By February 12, 2019, mediation 19 efforts fell apart, yet the parties stipulated to a continued stay to continue their settlement 20 discussions. ECF 32. The most recent stay expired on April 30, 2019 without a settlement. See 21 ECF 37. 22 On December 10, 2019, Plaintiff filed a second amended complaint asserting nine causes of 23 action on behalf of herself, six putative classes and four putative sub-classes. See generally, Second 24 Amended Complaint (“SAC”), ECF 48. On December 18, 2019, Defendants again filed a motion 25 to dismiss reasserting that Plaintiff never worked for HPEC or DXC. ECF 49. On March 31, 2020, 26 the Court granted Defendants motion with leave to amend. Order Granting Motion to Dismiss SAC 27 (“Prior Order”), ECF 63. Furthermore, the Court ordered that any amended complaint be filed by 1 8. 2 On May 18, 2020, Plaintiff filed her Third Amended Complaint alleging the same nine 3 causes of action. See generally TAC. In the TAC, Plaintiff includes allegations that HPEC’s logo 4 was on her paystubs and that she was subject to the policies and practice of HPEC. Id. ¶¶ 22-25. 5 Plaintiff also alleges that when HPEC merged with Computer Sciences Corporation to become 6 DXC, she became subject to the policies and practices of DXC as well. Id. ¶ 26. On May 29, 2020, 7 Defendants filed the present Motion. 8 II. LEGAL STANDARD 9 “A motion to dismiss under Federal Rule of Civil Procedure 12(b)(6) for failure to state a 10 claim upon which relief can be granted ‘tests the legal sufficiency of a claim.’” Conservation Force 11 v. Salazar, 646 F.3d 1240, 1241-42 (9th Cir. 2011) (quoting Navarro v. Block, 250 F.3d 729, 732 12 (9th Cir. 2001)). When determining whether a claim has been stated, the Court accepts as true all 13 well-pleaded factual allegations and construes them in the light most favorable to the plaintiff. 14 Reese v. BP Exploration (Alaska) Inc., 643 F.3d 681, 690 (9th Cir. 2011). However, the Court need 15 not “accept as true allegations which contradict matters properly subject to judicial notice” or 16 “allegations that are merely conclusory, unwarranted deductions of fact, or unreasonable 17 inferences.” In re Gilead Scis. Sec. Litig., 536 F.3d 1049, 1055 (9th Cir. 2008) (internal quotation 18 marks and citations omitted). While a complaint need not contain detailed factual allegations, it 19 “must contain sufficient factual matter, accepted as true, to ‘state a claim to relief that is plausible 20 on its face.” Ashcroft v. Iqbal, 556 U.S. 662, 678 (2009) (quoting Bell Atl. Corp. v. Twombly, 550 21 U.S. 544, 570 (2007)). A claim is facially plausible when it “allows the court to draw the reasonable 22 inference that the defendant is liable for the misconduct alleged.” Id. In determining whether the 23 alleged facts are plausible, the Court is “to draw on its judicial experience and common sense.” 24 Iqbal, 556 U.S. at 679. 25 III. REQUESTS FOR JUDICIAL NOTICE 26 Ordinarily, a district court’s inquiry on a Rule 12(b)(6) motion to dismiss is limited to the 27 pleadings. “A court may, however, consider certain materials – documents attached to the 1 without converting the motion to dismiss into a motion for summary judgment.” U.S. v. Ritchie, 2 342 F.3d 903, 908 (9th Cir. 2003). Courts may take judicial notice of facts that are “not subject to 3 reasonable dispute.” Fed. R. Evid. 201(b). Indisputable facts are those that are “generally known” 4 or that “can be accurately and readily determined from sources whose accuracy cannot be reasonably 5 questioned.” Id. 6 Defendants request that this Court take judicial notice of the contents of Plaintiff’s amended 7 letter to the California Labor and Workforce Development Agency (“LWDA”) regarding Plaintiff’s 8 intent to pursue PAGA claims, dated January 10, 2020. ECF 66, ECF 66-1 (the “Amended PAGA 9 Notice”). Plaintiff does not oppose the request. The Court finds that the Amended PAGA Notice 10 is properly subject to judicial notice.

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