Razo v. AT&T Mobility Services, LLC

CourtDistrict Court, E.D. California
DecidedMay 2, 2022
Docket1:20-cv-00172
StatusUnknown

This text of Razo v. AT&T Mobility Services, LLC (Razo v. AT&T Mobility Services, LLC) is published on Counsel Stack Legal Research, covering District Court, E.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Razo v. AT&T Mobility Services, LLC, (E.D. Cal. 2022).

Opinion

1 2 3 4 5 6 7 8 UNITED STATES DISTRICT COURT 9 EASTERN DISTRICT OF CALIFORNIA 10

11 LUIS M. SALAS RAZO, on his own behalf of ) Case No.: 1:20-cv-0172 JLT HBK and all others similarly situated, ) 12 ) ORDER DENYING PLAINTIFF’S MOTION FOR Plaintiff, ) PRELIMINARY APPROVAL OF CLASS 13 ) SETTLEMENT v. ) 14 ) (Doc. 72) AT&T MOBILITY SERVICES, LLC, and ) 15 DOES 1 through 100 ) ) 16 Defendants. ) ) 17

18 Luis Salas Razo asserts AT&T Mobility Services failed to comply with California’s wage and 19 hour laws by failing to pay all wages due and provide proper meal and rest breaks. Razo now seeks 20 preliminary approval of a settlement reached in this action. Specifically, Razo seeks: (1) conditional 21 certification of the settlement class; (2) preliminary approval of the settlement terms; (3) appointment 22 of Razo as the class representative; (4) appointment of the firm of Bradley/Grombacher LLP as class 23 counsel; (5) approval of the class notice materials; (6) appointment of Atticus Administration, LLC, as 24 the settlement administrator; and (7) scheduling for final approval. (Doc. 72.) 25 The Court reviewed the proposed settlement between the parties, as well as the moving papers, 26 and finds the matter suitable for decision without oral arguments pursuant to Local Rule 230(g). For 27 the following reasons, the Court finds conditional certification of a settlement class is not appropriate 28 and preliminary approval of the class settlement is DENIED. 1 I. Background 2 Razo was employed a sales representative at the AT&T Mobility Store located in Madera, 3 California. (Doc. 41 at 4, ¶ 11.) Razo asserts he worked for AT&T “for approximately eleven years” 4 until his termination in June 2018. (Id.) He alleges AT&T “routinely failed to properly calculate the 5 overtime and double time rate of pay.” (Id. at 6, ¶ 25.) Razo asserts AT&T “failed to include its 6 employees’ total compensation including bonuses and commissions when calculating the regular rate 7 for the purposes of determining overtime wages owed and thus routinely underpaid employees for 8 overtime wages owed.” (Id.) Razo contends this underpayment was “evidenced in [his] paycheck and 9 accompanying wage statement issued June 13, 2018.” (Id., ¶ 26.) 10 He alleges the wage statements also “failed to properly list all hours worked which again resulted 11 in an underpayment of wages including overtime and double time wages to employees.” (Doc. 4 at 6, 12 ¶ 27.) He contends, “[t]his resulted in failure to pay wages for all hours worked at appropriate rates, 13 and overtime violations for work performed over eight (8) hours per day and/or forty (40) hours per 14 week.” (Id.) For example, Razo asserts his wage statement from June 13, 2018, “incorrectly reflects 15 that the total hours worked because the hours associated with all of the line items add up to 106.08, but 16 the total hours worked line item only lists 81.98 hours.” (Id. at 7, ¶ 27.) 17 Razo asserts he and others “received paychecks without proper wages, as meal period 18 premiums were not paid at the proper rate, and the regular rate of pay was miscalculated.” (Doc. 41 at 19 7, ¶ 28.) Razo contends AT&T paid premiums for missed meal periods at his “base hourly rate, rather 20 than the regular rate of pay.” (Id.) According to Razo, the miscalculation was “evidenced in [his] 21 paycheck and accompanying wage statement issued June 1, 2018, which shows the untaken meal 22 break premium is paid at [the] base hourly rate,” without incorporating his commission in the premium 23 rate paid. (Id.) 24 Razo contends “on routine basis he and all other aggrieved employees received wage 25 statements in violation of Labor Code §226, as hours and rates were not properly shown on wage 26 statements.” (Doc. 41 at 7, ¶ 29 (emphasis omitted).) He alleges, “where there are payments for items 27 such as cash awards, commission, taxable non-cash-awards, miscellaneous payment, or overtime ‘true 28 up’ payments, there are no specific details as to rate or hours in the description or analysis that make 1 up the payment.” (Id.) He asserts the wage statements also violated California law because: 2 “premium pay for meal period violations were paid at the… base hourly rate, rather than his regular 3 rate of pay; the total hours listed are incorrect because the hours associated with the wage statement’s 4 line items exceed the number of total hours worked listed; and the wage statements list improper 5 overtime rates because [AT&T] omitted items such as “COMMISSION (MOBILITY)” when 6 calculating its employee’s regular rate of pay.” (Id. at 7-8, ¶ 31.) 7 According to Razo, due to the miscalculated wages, AT&T also failed “to pay for all wages due 8 prior to termination.” (Doc. 41 at 8, ¶ 32.) In addition, Razo alleges that his “ last day of work was in 9 June 2018, but since such date four additional payments were made with the latest payment made as 10 late as August 2018 well more than thirty (30) days after he ceased employment.” (Id., ¶ 35.) He 11 reports these “payments consisted of the final payment of wages described as (1) Cash Awards, (2) 12 Commission, (3) Taxable non-cash Awards, (4) Misc. Payment, and (5) recalculation of overtime 13 differential pay.” (Id. at 9, ¶ 36.) Razo contends that AT&T “knew or should have known, that all 14 other employees, including Plaintiff, were entitled to receive all wages at appropriate rates, all overtime 15 at appropriate rates, and all commissions due at the time their employment ceased,” and knowingly and 16 willfully failed to pay the wages due upon termination. (Id., ¶¶ 36-37.) 17 On May 29, 2019, Razo provided notice to the Labor and Workforce Development Agency and 18 AT&T “of the specific provisions of the California Labor Code alleged to have been violated, including 19 the facts and theories to support the alleged violations.” (Doc. 41 at 9, ¶ 42 (emphasis omitted).) He 20 asserts the LWDA did not respond to the notice. (Id., ¶ 43.) 21 On August 27, 2019, Razo initiated this action by filing a class complaint in Madera County 22 Superior Court, Case No. MCV081925. (Doc. 1-4 at 5.) Razo filed an amended complaint in the state 23 court on January 8, 2020. (Doc. 1-9.) AT&T initiated the matter before this Court by filing a notice 24 of removal on January 31, 2020. (Doc. 1.) Razo further amended the pleadings on July 30, 2020, and 25 October 15, 2021. (Docs. 9, 41.) The Third Amended Complaint is now the operative pleading. 26 Razo identifies the following causes of action in the TAC: (1) failure to pay for all hours 27 worked; (2) failure to pay overtime wages; (3) failure to pay wages due at termination in violation of 28 Cal. Labor Code §§ 201-203; (4) failure to furnish accurate, itemized wage statement in violation of 1 Cal. Labor Code § 226; (5) unlawful and unfair conduct in violation of Cal. Bus. & Prof. Code § 2 17200, et seq.; and (6) civil penalties under California’s Private Attorney General Act. (Doc. 41 at 13- 3 23.) Razo asserted the claims were brought on behalf of himself and classes including: 4 1. “The Plaintiff Class”: All persons who have been, or currently are, employed by Defendant and who held, or hold, job positions which Defendant have 5 classified as “non-exempt” personnel in the State of California. (The Class Period is the period from August 27, 2015, through and including the date 6 judgment is rendered in this matter).

7 2. “The Terminated Sub Class”: All members of the Plaintiff Class whose employment ended during the Class Period (The Class Period is the period 8 from August 27, 2015, through and including the date judgment is rendered in this matter). 9

10 (Id. at 10.) AT&T filed its answer on October 28, 2021. (Doc. 46.) 11 While this matter was pending, AT&T settled a separate class action addressing “the same 12 claims” as those raised by Razo, in Samuel Wallack, et al. v.

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Razo v. AT&T Mobility Services, LLC, Counsel Stack Legal Research, https://law.counselstack.com/opinion/razo-v-att-mobility-services-llc-caed-2022.