Aaron’s Overtime Pay and Breaks California Class Action

When a company calculates the overtime rate of pay for its employees, it must take into consideration more than just the employee’s base hourly pay. The complaint for this class action alleges that Aaron’s, Inc. does not figure in incentive pay when calculating employees’ overtime rates. It also alleges that the company does not give employees proper meal or rest breaks. These violations mean that the company is likely to violate other, “downstream” requirements under California’s labor laws.

The class for this action is all persons who are or have been employed, in California, as an hourly employee by Aaron’s, between July 2, 2016 and the present.

Plaintiff Luis H. Castro Cardenas worked for Aaron’s in California as an hourly employee. The complaint assumes that his employment is subject to California Industrial Welfare Commission Occupational Wage Orders as well as its Labor Law.

The complaint alleges a number of violations committed by Aaron’s against Cardenas:

First, the complaint claims that Aaron’s did not take Cardenas’s incentive pay into consideration when figuring his overtime rate of pay. This would mean that his rates of pay at time-and-a-half and double time were incorrectly calculated.

Second, the complaint claims that Cardenas did not get proper meal breaks at the required intervals in his workday. The complaint claims that employees were not informed that they were entitled to such meal breaks. While companies are allowed to ask workers to skip meal breaks, in such instances they must give them an addition hour’s pay.

Third, the complaint claims that Cardenas did not get proper rest breaks at the required intervals in the day, nor was he informed that he was entitled to them. Again, companies are allowed to ask workers to skip their rest breaks, but when they do, they must give them an additional hour’s pay.

These violations led to other, “downstream” violations.

Because of the improper calculation of overtime pay and the failure to allow for proper meal and rest breaks, the company did not provide workers with accurate itemized statements.

Because the company had not paid proper overtime wages or penalties for missed meal or rest breaks, it also had not paid workers all it owed them at termination or resignation.

Because not all wages were paid at termination, the complaint alleges that workers who were terminated or resigned are entitled to “waiting time” penalties. California’s waiting time penalties provide that in such instances, a worker is entitled to continuing pay for up to thirty days after termination or resignation.

Article Type: Lawsuit
Topic: Employment

Most Recent Case Event

Aaron’s Overtime Pay and Breaks California Complaint

July 2, 2020

When a company calculates the overtime rate of pay for its employees, it must take into consideration more than just the employee’s base hourly pay. The complaint for this class action alleges that Aaron’s, Inc. does not figure in incentive pay when calculating employees’ overtime rates. It also alleges that the company does not give employees proper meal or rest breaks. These violations mean that the company is likely to violate other, “downstream” requirements under California’s labor laws.

Aaron’s Overtime Pay and Breaks California Notice of Removal and Complaint

Case Event History

Aaron’s Overtime Pay and Breaks California Complaint

July 2, 2020

When a company calculates the overtime rate of pay for its employees, it must take into consideration more than just the employee’s base hourly pay. The complaint for this class action alleges that Aaron’s, Inc. does not figure in incentive pay when calculating employees’ overtime rates. It also alleges that the company does not give employees proper meal or rest breaks. These violations mean that the company is likely to violate other, “downstream” requirements under California’s labor laws.

Aaron’s Overtime Pay and Breaks California Notice of Removal and Complaint
Tags: Employment Violations, Failure to Allow for/Figure in Break Time, Improper Calculation of Overtime Rates