Williams v. Alacrity Solutions Grp.

CourtCalifornia Court of Appeal
DecidedApril 22, 2025
DocketB335445
StatusPublished

This text of Williams v. Alacrity Solutions Grp. (Williams v. Alacrity Solutions Grp.) 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
Williams v. Alacrity Solutions Grp., (Cal. Ct. App. 2025).

Opinion

Filed 4/22/25 CERTIFIED FOR PUBLICATION

IN THE COURT OF APPEAL OF THE STATE OF CALIFORNIA

SECOND APPELLATE DISTRICT

DIVISION FIVE

CORBIN WILLIAMS, B335445

Plaintiff and Appellant, (Los Angeles County Super. Ct. No. v. 23STCV05372)

ALACRITY SOLUTIONS GROUP, LLC,

Defendant and Respondent.

APPEAL from a judgment of the Superior Court of Los Angeles County, Maren E. Nelson, Judge. Affirmed.

Clarkson Law Firm, Glenn A. Danas, Ashley M. Boulton, and Katelyn M. Leeviraphan; Wage and Hour Firm and Melinda Arbuckle for Plaintiff and Appellant. Arnold & Porter Kaye Scholer, David J. Reis, and Katelyn E. Rey for Defendant and Respondent.

****** The Private Attorneys General Act (PAGA) (Lab. Code, § 2698 et seq.)1 authorizes an “aggrieved employee” to step into the shoes of the State of California and sue for civil penalties premised on certain violations of the Labor Code “on behalf of himself or herself and other current or former employees.” (Former § 2699, subd. (a); Kim v. Reins International California, Inc. (2020) 9 Cal.5th 73, 81 (Kim).)2 In this case, a former employee was barred by the statute of limitations from suing his former employer for civil penalties on his own behalf under PAGA. (Code Civ. Proc., § 340, subd. (a) [one-year limitations period].) So the former employee sued solely to recover penalties “on behalf of . . . other current and former employees.” Is this allowed? We hold it is not. To be a PAGA plaintiff (under the statutes in effect prior to July 1, 2024), a private individual must, among other things, seek to recover civil penalties on his own behalf for that violation (Leeper v. Shipt, Inc. (2024) 107 Cal.App.5th 1001, 1008-1010 (Leeper), review granted Feb. 18, 2025), and must establish that this so-called “individual claim” is

1 All further statutory references are to the Labor Code unless otherwise indicated.

2 While this appeal was pending, our Legislature enacted extensive amendments to PAGA effective July 1, 2024. (Stats. 2024, chs. 44 & 45.) However, our holding is based on the pre- amendment version of PAGA in effect throughout the litigation of this case. (See Stone v. Alameda Health System (2024) 16 Cal.5th 1040, 1075, fn. 18.)

2 timely as to at least one Labor Code violation (Arce v. The Ensign Group, Inc. (2023) 96 Cal.App.5th 622, 630 (Arce); LaCour v. Marshalls of California, LLC (2023) 94 Cal.App.5th 1172, 1184- 1185 (LaCour); Hutcheson v. Superior Court (2022) 74 Cal.App.5th 932, 939 (Hutcheson); Esparza v. Safeway, Inc. (2019) 36 Cal.App.5th 42, 59 (Esparza); Brown v. Ralphs Grocery Co. (2018) 28 Cal.App.5th 824, 839 (Brown)). Because the employee in this case has not and cannot satisfy these requirements, the trial court properly sustained a demurrer to the PAGA action without leave to amend. We accordingly affirm. FACTS AND PROCEDURAL BACKGROUND I. Facts3 Corbin Williams (Williams) worked as an insurance adjuster for Alacrity Solutions Group, LLC (defendant) starting in 2014. While employed, Williams “typically” worked 84-hour weeks—that is, 12 hours a day, seven days a week. He was an hourly employee. As a result, he was entitled to overtime pay whenever he worked more than eight hours in a day or 40 hours in a workweek, and was also entitled to overtime pay whenever he worked a seventh consecutive day. But defendant did not pay Williams any overtime pay. As a result, defendant violated the Labor Code by not paying Williams all the wages he was owed and by issuing Williams inaccurate wage statements. (§§ 201- 203, 510 et seq., 226, 1174, 1174.5.) Williams’s employment with defendant ended in January 2022.

3 We draw these facts from the allegations in the operative complaint.

3 II. Procedural Background A. Administrative exhaustion It was not until March 7, 2023—more than a year after his employment ended—that Williams provided written notice to California’s Labor & Workforce Development Agency (the Agency) of his intent to pursue a PAGA action for defendant’s Labor Code violations. B. Complaint A few days later, on March 10, 2023, Williams sued defendant. In the operative first amended complaint, Williams asserted a single claim under PAGA seeking civil penalties “on behalf of the State of California and other current and former employees”—but, critically, not on his own behalf4—for the alleged overtime and wage statement violations occurring in the “one year prior” to the written notice Williams filed with the Agency on March 7, 2023.5 C. Demurrer Defendant demurred to the complaint, arguing Williams failed to state a cause of action because (1) his PAGA action was barred by the one-year statute of limitations, and (2) he lacked standing to assert a PAGA action. In his opposition, Williams

4 While there are allegations within the operative complaint indicating pursuit of Williams’s individual claims, Williams has expressly abandoned any such claims.

5 In addition to a PAGA action, the original complaint also asserted putative class claims for violations of the various Labor Code provisions underlying the PAGA action and for violation of California’s Unfair Competition Law (Bus. & Prof. Code, § 17200 et seq). Plaintiff submitted his individual claims to arbitration, and dropped those claims from the operative amended complaint.

4 effectively conceded that any individual claim he might assert under PAGA was “barred by the statute of limitations,” but maintained that this untimeliness was irrelevant because the PAGA action he alleged sought only to recover civil penalties on behalf of other aggrieved employees and the State. Following receipt of a reply brief and a hearing, the trial court issued an order sustaining the demurrer without leave to amend. The court found Williams’s action was “time-barred” because he personally suffered no Labor Code violations by defendant in the one-year window prior to notifying the Agency (that is, between March 2022 and March 2023), as Williams had stopped working for defendant in January 2022. The court did not reach defendant’s alternative argument that Williams lacked standing. Because Williams could not “truthfully amend[]” the complaint “to plead facts occurring within the limitations period,” the court denied leave to amend. D. Appeal Following the entry of judgment for defendant, Williams filed this appeal. DISCUSSION Williams asserts that the trial court erred in sustaining the demurrer to his PAGA action without leave to amend. In reviewing a trial court’s dismissal of a complaint on demurrer, “we ask two questions: ‘(1) Was the demurrer properly sustained; and (2) Was leave to amend properly denied?’ [Citation.] In answering the first question, ‘we ask whether the operative complaint “‘states facts sufficient to constitute a cause of action.’”’ [Citations.] In undertaking that inquiry, ‘we accept as true all “‘“‘material facts properly pleaded’”’”’ in the operative complaint [citations] . . . . ” (Engel v. Pech (2023) 95 Cal.App.5th

5 1227, 1234-1235.) A demurrer is properly sustained if, on the face of the alleged material facts, the action is “‘necessarily[] barred’” by the applicable statute of limitations. (Geneva Towers Ltd. Partnership v. City and County of San Francisco (2003) 29 Cal.4th 769, 781.) “In answering the second question, we ask ‘“‘whether “‘“there is a reasonable possibility that the defect [in the operative complaint] can be cured by amendment.”’”’”’ [Citation.] We review the trial court’s ruling regarding the first question de novo [citations], and review its ruling regarding the second for an abuse of discretion [citation].” (Engel, at p. 1235.) I. Was the Demurrer Properly Sustained? A. Pertinent law 1. PAGA, generally In response to “significant underenforcement” of California’s Labor Code by state agencies, leading to “widespread violations” of the Code, our Legislature in 2004 enacted PAGA.

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Bluebook (online)
Williams v. Alacrity Solutions Grp., Counsel Stack Legal Research, https://law.counselstack.com/opinion/williams-v-alacrity-solutions-grp-calctapp-2025.