The California Supreme Court has upheld the certification of the class in an action filed against Sav-on Drug Stores on behalf of California Sav-On managers and assistant managers who allege that the chain misclassifies its them as exempt from the state's overtime wage laws. The action seeks unspecified compensatory damages.
The action alleges that many workers, despite being given titles such as "store manager" or "team leader," spend most of their day on non-managerial tasks like stocking shelves or tending a cash register, rather than overseeing any aspect of the business. The ruling came the same week that new federal overtime regulations took effect-- the federal regulations are expected to have little effect in California, though, because it has its own labor laws.
The unanimous Supreme Court ruling overturned appeals court decision that would have discouraged such suits. The trial court judge certified the suit as a class action, a move that was appealed by Sav-on. The state Court of Appeal reversed the trial judge, finding that managers in different stores spent their time in such different ways that they were not similar enough to be treated the same in a mass trial or settlement.
In overturning the Court of Appeal's decision, the judges said the employees had presented enough evidence of common grievances to have their lawsuit certified as a class action. "The record contains substantial, if disputed, evidence that deliberate misclassification was defendant's policy and practice," Justice Kathryn Mickle Werdegar wrote for the court. Without class actions, she added, there would be a "multiplicity of trials conducted at enormous expense to both the judicial system and the litigants."
Under California's statutes, workers who spend more than 50% of their time performing the duties of hourly workers, even if they're called managers, are eligible for overtime pay. Eligible workers who put in more than eight hours a day on the job are supposed to be paid for the overtime at time-and-a-half. Under federal law followed in most other states, managers may be exempt from overtime pay if their primary duties are supervisory.
Persons eligible to participate in the action may contact the attorneys for the class for more information.