Ali v. Setton Pistachio of Terra Bella, Inc.
Decision Date | 28 March 2023 |
Docket Number | 1:19-cv-00959-JLT-BAM |
Parties | LILIA ALI, on behalf of herself and all others similarly situated, Plaintiff, v. SETTON PISTACHIO OF TERRA BELLA, INC., a California corporation, and DOES 1 through 100, inclusive, Defendants. |
Court | U.S. District Court — Eastern District of California |
ORDER ADOPTING IN PART AND DECLINING TO ADOPT IN PART FINDINGS AND RECOMMENDATIONS REGARDING PLAINTIFF'S MOTION FOR CLASS CERTIFICATION (DOCS. 61, 77)
Lilia Ali filed suit against a pistachio grower and processor Setton Pistachio of Terra Bella, Inc., alleging that Setton Pistachio violated California wage-and-hour laws by enforcing an unlawful rounding policy that failed to compensate hourly employees for all hours worked. Ali filed a motion for class certification, seeking to certify a class consisting of “[a]ll California-based hourly employees employed by Defendant during the time period from April 27, 2012 to the present to whom Defendant paid based on their rounded rather than actual hours worked; which was referred to the assigned magistrate judge for issuance of findings of recommendations,” (“Rounding Class”), as well as several classes premised upon theories of liability that are derivative of the Rounding Class. (See Doc 60-1 at 9.) The parties also filed various evidentiary objections. (See Docs. 72-2, 72-3, 73.)
On February 9, 2023, the assigned magistrate judge issued findings and recommendations recommending as follows: (1) Ali's motions to strike (Docs. 72-2 and 72-3) be denied; (2) Setton Pistachio's motion to strike (Doc. 73) be denied; and (3) Ali's motion for class certification be denied. (Doc. 77.) The findings and recommendations were served on the parties and contained notice that any objections thereto were to be filed within fourteen (14) days after service. (Id.) On February 23, 2023, Ali filed objections and a request to stay this matter pending a ruling from the California Supreme Court. (Doc. 78.) Setton Pistachio filed a response to the objections and request to stay on March 9, 2023. (Doc. 79.)
According to 28 U.S.C. § 636 (b)(1)(c), this Court has conducted a de novo review of the case. Having carefully reviewed the entire file, including the objections, the Court finds that the findings and recommendations are supported by the record and proper analysis in part, but departs from the findings and recommendations in one respect, which warrants granting the motion for class certification in part.
Ali raises two primary objections. First, Ali complains that the findings and recommendations considered only whether employees were working once they clocked in, not whether they were under the control of Setton Pistachio. (Doc. 78 at 7-15.) This objection is not well founded. Plaintiff is correct that employer control can serve as a pathway to liability in a case like this. As the Ninth Circuit explained in Sali v. Corona Regional Medical Center, 909 F.3d 996, 1010 (9th Cir. 2018):
California's compensable-time standard encompasses two categories of time. First, time is compensable if an employee is “under the control” of his or her employer whether or not he or she is engaging in work activities, such as by being required to remain on the employer's premises or being restricted from engaging in certain personal activities. Second, time is compensable if an employee “is suffered or permitted to work, whether or not required to do so.” (internal citations omitted). But the findings and recommendations expressly considered the issue of employer control, distinguishing this action from Sali on that issue. (See Doc. 77 at 22-23.) More persuasively, Ali objects to the magistrate judge's application of Sali to the record.
(Doc. 78 at 11-12.) The Court agrees with Plaintiff in part. As to the question of whether employees were in fact working, and therefore whether they were “suffered or permitted to work,” the magistrate judge correctly concluded that individualized determinations would predominate the question of whether employees did in fact perform work during the few minutes between when they clocked in and when their shift started. (Doc. 77 at 21.) Plaintiff does not seriously contest this. Plaintiff does directly contest the magistrate judge's findings on the employer control theory of liability. Sali, 909 F.3d at 1010. Per Sali, the “employer control” question “necessarily requires an employer-focused inquiry into whether [the employer] had a policy or practice that restricted [the employees'] in a manner that amounted to employer control during the period between their clock-in and clock-out times and their rounded shift-start and shift-end times.” Id. Sali specifically indicated that control could be shown where an employee is “required to remain on the employer's premises or [is] restricted from engaging in certain personal activities.” Id.
Defendant's HR Manager testified at deposition that there was a company-wide policy that prohibited employees from leaving the premises once they were clocked in:
(Doc. 61-2 at 70-71 (emphasis added).)
The magistrate judge thoughtfully reviewed the conflicting evidence on the existence of such a policy as follows:
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