September 2011 Archives

Hollywood Star Charlie Sheen and Warner Brothers Settle Multimillion Dollar Lawsuit

September 30, 2011,

In a recent Los Angeles, California employment lawyers blog, our attorneys discussed the Los Angeles employment lawsuit filed by television and movie star Charlie Sheen against Warner Brothers Studio and Chuck Lorre, the Executive Producer of the popular television series Two and a Half Men, that featured Sheen as a central character until this spring.

According to news reports from last week, Sheen and Warner Brothers are finalizing the multimillion-dollar settlement that will end the very public battle that has continued over the past few months--after Sheen hurled public insults against Lorre for being fired from the show, leading to the cancellation of Two and a Half Men for the rest of the season.

Warner Brothers stated that Sheen's contract was terminated after health issues led to his inability to perform his duties as a performer for the show. He was reportedly fired in March for his failure to report to set and perform due to drug usage, for trashing a hotel room, and for his public statements against Chuck Lorre.

Sheen sued Warner Brothers and Lorre in March of this year, claiming that his television contract termination came from Lorre in order to serve Lorre's self-interest and ego--and accused Lorre of breach of contract, breach of the implied covenant of good faith and fair dealing, retaliation and other employment charges. The lawsuit asked for $100 million in punitive damages.

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DOL and IRS Combine Forces to Combat Employee Misclassification

September 26, 2011,

Our Costa Mesa, California employment lawyers have been following the recent announcement of a jointly signed memorandum of understanding by the U.S. Department of Labor and the IRS, that aims to combine departmental efforts to eliminate the practice of employee misclassification in businesses across the country.

Agency leaders and labor commissioners from seven states also signed memorandums of understanding with the DOL's Wage and Hour division, including Maryland, Massachusetts, Utah, Missouri, Minnesota, Connecticut, and Washington. Hilda L. Solis, U.S. Secretary of Labor, also announced that the Wage and Hour Division of the DOL will enter into agreements with the state labor agencies of Illinois, Montana, and Hawaii, as well as New York State's attorney general.

According to the DOL press release, the memorandums of understanding will help the DOL to share information regarding employee misclassification with the IRS and participating states in order to coordinate law enforcement--making sure that employees are receiving their federal and state law employment protections, and to level the playing field for employers who follow state and federal employment laws.

As our Riverside employment lawyers blog has reported in a previous post, employment misclassification poses a serious threat to employees who have the legal right to employment that pays fairly and to honest employers who follow the guidelines of federal labor and employment rules and regulations--as employee misclassification cheats employees out of important employment benefits like minimum wage and overtime compensation, and gives dishonest employers who knowingly engage in employee misclassification an unfair competitive advantage.

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Hollywood Actors Sued by Restaurant Employees for Wage and Hour Violations

September 22, 2011,

According to a recent Los Angeles, California wage and hour news report that our Santa Ana employment attorneys have been following, the celebrity investors of Shin BBQ restaurant, Hollywood star Gerard Butler, from "300," and television stars Laura Prepon, Danny Masterson, and Chris Masterson, are being sued by two former employees for wage and hour violations of the Fair Labor Standards Act, (FLSA).

According to the lawsuit, filed last month in Los Angeles Superior Court, the celebrities are being sued along with owner Simon Shin, DJ Mark Ronson and music producer Steve Aoki, for neglecting to pay minimum wage and overtime compensation, failure to provide proper rest and meal break periods, and for unfair competition.

The former employees, Gilberto Hernandez and Eder Martinez, a cook and dishwasher, claim that they routinely worked over eight hours per day, and more than forty hours in a workweek, but never received any overtime payment. They also claim that they were unable to take their legally entitled 10-minute rest breaks in the mornings and afternoons, and they were not allowed to take meals breaks every five hours. The former employees also claim that Shin BBQ did not pay minimum wage for shifts that were split.

The California wage and hour lawsuit claims that Hernandez is owed back pay that amounts to over $28,000, and Martinez is owed around $5,800 in back pay. The former employees are asking to be compensated for the income that they are owed, plus punitive damages for the alleged unlawful behavior.

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Fired Cancer Survivor Receives Record $846K in California DFEH Discrimination Lawsuit

September 21, 2011,

The California Fair Employment and Housing Commission (FEHC) has recently awarded a California regional sales manager the largest administrative payment ever ordered in a discrimination case, after the disabled employee was fired while recovering from cancer.

Our Carson, California employment lawyers have been following the development of Charles Wideman's case, an employee who was fired while recuperating from cancer under the pretext that he wasn't investing enough time traveling to meet customers while working for the electrical supply company, Acme Electric.

According to the Department of Fair Employment and Housing, (DFEH), which represented Wideman, Acme Electric must pay a record $846,300 in the California disability discrimination lawsuit for Wideman's losses--$748,571 for lost wages, $22,729 for out of pocket expenses, $50,000 for emotional distress, and a $25,000 administrative fine to the State's General Fund for engaging in what the California commission described as deplorable conduct.

Wideman was reportedly a veteran sales manager for the electrical company, heading Acme's largest sales region from February of 2004 until March of 2008, at which point his employment was terminated at the age of 59. Wideman went through surgery for kidney cancer in 2006 and then prostate cancer in 2007, returning to work within a few weeks of both operations, but had to reduce his traveling while he underwent further cancer treatments. Wideman reportedly requested accommodation for this period of time, that went unacknowledged and was refused.

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Hollywood Producer to Pay Former Assistant Over $3M in Sexual Harassment Lawsuit

September 20, 2011,

In recent Los Angeles, California employment news, Jon Peters, the 66-year old Hollywood producer of films such as "Flashdance," "The Color Purple," and "Batman," has been ordered by a Los Angeles jury to pay his former assistant over $3 million in damages after being sued for sexual harassment.

According to the lawsuit, Shelly Morita accused Peters of failure to prevent sexual harassment, and creating a hostile work environment while she worked as an assistant for Peters and his company, J.P. Organization Inc., from February of 2005 for one year.

Morita claimed in the trial that she established her reputation of being a reliable assistant by being willing to perform just about any task for her employers. Morita was an experienced personal assistant before she started working for Peters in 2005, having been previously employed by celebrities like Marisa Tomei, Justine Bateman, Jennifer Aniston and Jennifer Connelly.

Peters reportedly hired Morita in 2005, demanding long hours and a six-day workweek--which required her to hire a babysitter to take care of her then 2-year-old daughter. Morita stated that Peters was happy with her work, even giving her $10,000 as a bonus in appreciation of her work.

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EEOC Sues Walgreens for Disability Discrimination

September 19, 2011,

According to recent U.S. Equal Employment Opportunity Commission (EEOC) news, that our Riverside employment attorneys have been following, the commission has filed a lawsuit against a Walgreens drugstore for California disability discrimination, on behalf of a store clerk who suffers from diabetes in the San Francisco area--whose employment was terminated for taking and eating chips from the store in order to quickly stabilize her levels of blood sugar.

The EEOC claims that Josefina Hernandez was an outstanding employee with almost 18 years of service with the company, and no record of any employment problems. Walgreens reportedly knew about her diabetes. The lawsuit accuses Walgreens of disability discrimination under the Americans with Disabilities Act (ADA), for deciding to terminate Hernandez because of her diabetes, after eating chips because her blood sugar was low.

According to the lawsuit, in 2008, Hernandez was working as a cashier, when she felt an attack of hypoglycemia coming on, a state produced by an abnormally low level of blood sugar or glucose, commonly associated with diabetes. The Mayo clinic states that immediate treatment of hypoglycemia involves taking quick steps to stabilize your blood sugar back to a normal range, by eating foods that are high in sugar or taking medication to avoid a diabetic episode or emergency.

Hernandez reportedly grabbed a bag of chips that cost $1.39 and quickly ate them, paying for the chips as soon as she could on the same day, after she finished her duty as a cashier. Hernandez claimed that she almost always carries a piece of candy in her pocket for emergency situations, but she didn't have anything with her during her shift on that day. She stated that she knew she needed to act quickly to treat the hypoglycemia, so she reached for a bag of chips and paid for them as soon as she could.

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Groupon Employee Files Class Action Overtime Lawsuit

September 13, 2011,

Our Costa Mesa, California employment attorneys have been following a current wage and hour lawsuit filed against the online coupon firm, Groupon, where a former employee is accusing the company of illegal pay practices and violations of the Fair Labor Standards Act, (FLSA).

The potential class-action wage and hour lawsuit was filed recently by Ranita Daily, a former employee who is accusing Groupon of failing to pay overtime compensation to hundreds of former and current sales employees whose responsibilities include cold-calling businesses to encourage them to sign them up for the online coupon service.

This lawsuit reportedly adds to a list of current issues the three-year old company is facing, including multiple lawsuits regarding the rules for coupons and whether they violate consumer-protection laws put into place for gift cards, along with the decision to move forward with Groupon's initial public offering.

According to Crain's Chicago Business, this wage and hour lawsuit could be a potential problem for the company, as 4,800 of Groupon's nearly 10,000 employees are sales representatives throughout the world. Nearly 1,000 of the sales representatives are working in the United States, and covered by federal wage and hour laws--which could create potential overtime payout of around $2 million or more.

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Drilling Employees Paid $70K After DOL Attacks Employers For Misclassification

September 12, 2011,

According to the U.S. Department of Labor (DOL) employee misclassification is an alarming employment trend, especially in industries that often hire low-wage workers who are vulnerable to wage violations in the workplace.

As our Costa Mesa labor attorneys reported in a previous Anaheim employment lawyers blog, employment misclassification is a serious threat to employees who are legally entitled to jobs that pay fairly and are safe, as well as to honest employers who follow the federal labor and employment rules and regulations.

When employees are misclassified as independent contractors, they are often deprived of minimum wages and overtime compensation and forced to pay the taxes that employers are legally obligated to pay under law. When employers engage in employee misclassification it gives them an unfair business advantage against honest employers who are willing to play by the rules and follow wage and hour laws and regulations.

The DOL has recently recovered $70,701 in back wages for employees of Latshaw Drilling Company, after an employee misclassification investigation found that 34 sandblasters and painters were misclassified as independent contractors and were therefore denied overtime compensation for all hours worked--a violation of the Fair Labor Standards Act.

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'Gossip Girl' Star Sued By Her Mother in $3M Breach-of-Contract Lawsuit

September 9, 2011,

In the unusual and ongoing Hollywood employment lawsuit that our Riverside employment attorneys have been following, Leighton Meester, the star of the hit television show Gossip Girl, who recently filed a lawsuit against her mother, Constance Meeester, is trying to have her mother's $3 million breach-of-contract counter-lawsuit dismissed by a judge.

According to the Hollywood Reporter, the 25-year old Gossip Girl actress reportedly sued her mother Constance in July, claiming that the money she sent her family on a monthly basis to provide for her brother's medical attention was misused by her mother. Leighton claimed in the suit that there was no contractual obligation for her to send them the $7,500 per month, but that she wanted to provide medical care for her brother after his brain surgery last May. The money was reportedly used instead to further Constance's plastic surgery and cosmetic procedures.

Constance Meester reportedly responded by filing a counter-lawsuit a few days later alleging that Leighton had breached various contract agreements totaling $3 million, and that as her manager, she sacrificed her own personal happiness to support her daughter's acting career. According to Constance's complaint, she was allegedly taken advantage of by Leighton, claiming a breach of management, support and settlement agreements--all of which Leighton claims are non-existent agreements.

Leighton reportedly states that the document evidence used in her mother's lawsuit was only an employment agreement allowing Leighton's acting services to be legitimized by her corporation, Intentional Productions, Inc. (IPC). The document states that Leighton is to be given all the income from her activities, only allowing for certain things to be deducted by the corporation, like agent commissions, manager's fees, union dues and health contributions--none of which Leighton claim provided Constance with any money, as she had no authority over the income.

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DOL Continues to Track Down Federal Wage and Hour Law Violations in the Workplace

September 8, 2011,

As our Santa Ana, California employment lawyer blog has discussed recently, the U.S. Department of Labor is continuing to track down wage and hour law violations, especially in the health-care, construction and tourism industries.

According to Bloomberg News, Hilda Solis, the Secretary of the U.S. Department of Labor (DOL), announced recently that the DOL is standing behind a proposal that would require employers to give employees more information about payment, to help reduce the number of wage and hour violations in the workplace.

Solis claimed that the goal of the proposal is to promote more transparency in compensation, so people can better understand how their pay is being calculated. The proposal would reportedly require companies to give workers a report that clearly explains how their payment and hours are set up--aiming to ensure that employees are compensated for their overtime hours, which under federal law requires that covered workers receive a minimum wage of $7.25 per hour, with overtime compensation of one and one-half their pay rate for any hours worked beyond forty in a week of work.

Under President Obama's administration, Labor Secretary Solis has embarked on a nationwide campaign to investigate workplace wage and hour violations, focusing on low-wage and vulnerable workers who are often unaware of their legal rights.

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Renal Advantage Sued in Employee Misclassification Lawsuit

September 6, 2011,

In a recent Orange County, California employment lawyers blog, our attorneys discussed the important issue of employee misclassification--a workplace issue that continues to affect employees in businesses across the country, as improperly classifying an employee can lead to violations of state and federal labor laws.

In related California class action lawsuit news, Renal Advantage, a company that offers renal dialysis centers across the country, is being sued by a class of California dietitians who claim that they have experienced employee misclassification, by having their wage and hour rights violated under the California Labor Code.

According to the lawsuit, Renal Advantage is being accused of violating California overtime laws by intentionally misclassifying the employees as "exempt" from the overtime requirements in order to get out of paying them overtime compensation for the overtime hours that they worked.

The employees claim that they were misclassified as "exempt" from receiving overtime payment, as according to California law, they never acted as professionals or executives with specific and advanced knowledge in the area of traditional medicine. The dietitians claim that they are "non-exempt" employees, and have the right to receive overtime compensation for any hours worked over eight hours in a day and forty hours in a workweek.

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NUMMI/Toyota Pays CA Workers $6M in Class Action Discrimination Lawsuit Settlement

September 5, 2011,

As our attorneys reported in a recent Costa Mesa, California employment lawyers blog post, California's last auto plant, New United Motors & Manufacturing (NUMMI) and its parent company, Toyota Motor Corp. were sued last year in a class action lawsuit, for allegedly denying comprehensive severance agreements to disabled workers who had sustained employment-sustained injuries, keeping them from working at the plant prior to the closure.

According to the U.S. Equal Employment Opportunity Commission (EEOC), who filed the discrimination lawsuit on behalf of the workers, NUMMI decided to contribute to a $6 million settlement fund last month, to resolve the complaints against the company for federal employment law violations.

The class action lawsuit accused NUMMI of denying disabled employees who were on medical leave severance benefits and transitional services that other employees received when the plant was closed in April of 2010. After the plant closed, the employees reportedly received a severance package that was based on whether they worked during the final six months of the plant's operation, as well as their years of service with the company.

The EEOC reportedly received a number of complaints from former employees who were on medical leave at the time of the plant's closing, alleging that they were not offered any severance benefits. The EEOC was also informed by the employees that while they were physically capable of returning to work during the severance period, they were denied reinstatement with the company. The result led the disabled workers on medical leave to be ineligible for the amount of severance compensation that factored into their years of service--many of which had worked for NUMMI for 25-30 years, and suffered losses of around $38,000 each.

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'Desperate Housewives' Sued for Wrongful Termination by Hollywood Television Star

September 2, 2011,

In recent news that our Costa Mesa labor and employment attorneys have been watching, a Los Angeles, a California judge has advised Nicollette Sheridan, the former star of the popular television show Desperate Housewives, to settle her wrongful termination lawsuit against ABC and the show's creator and executive producer Marc Cherry, that she filed last year.

This week, in Los Angeles Superior Court, Sheridan and her legal team were told by the judge that they were going to spend a lot of money on this wrongful termination case--urging them to settle.

The Superior Court Judge also limited the damages that Sheridan could receive if she would win at the trial--ruling that Sheridan can only ask for damages for one year of pay on the show, instead of the entire run of the series. The show will start its eighth season this fall, and it will be the show's last.

The wrongful termination lawsuit has also reportedly been pared down since last year, as the judge threw out Sheridan's harassment charges, and ruled this week that the television actress could not make reference to Cherry's alleged rude behavior in the trial.

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3M Settles Class Action Age Discrimination Lawsuit for $3 Million

September 1, 2011,

The Age Discrimination in Employment Act (ADEA) protects employees who are forty years old and older from workplace age discrimination. As our Carson employment lawyer blog has reported in a related post, it is a violation of the ADEA to discriminate against an employee based on age in hiring, training, promotion, employment assignments, layoffs, firing, or in compensation or benefits. Harassment or retaliation based on age is also against the law.

In recent class action age discrimination news, 3M, the global technology company, has agreed to compensate a class of former employees with $3 million, after a lawsuit filed by the U.S. Equal Employment Opportunity Commission (EEOC) charged the company with age discrimination by unlawfully laying off employees who were over the age of 45.

According to the lawsuit, in a series of reductions in force (RIFs), 3M illegally laid off hundreds of employees who were over the age of 45 in a three-year span between 2003 and 2006. 3M reportedly extended the lay offs to many older employees who received high compensations to save money, and let workers in salaried positions go. The EEOC claims that the older employees were also denied leadership training, and were let go to allow younger leaders to move forward. An email was also discovered by the EEOC that detailed then-CEO Jim McNerney's idea of leadership development, which included developing 30-year-old workers who had the potential to be General Managers.

Under the consent decree 3M will pay $3 million to around 290 former employees in monetary relief, pending judicial approval. 3M will also reportedly create a review process for termination decisions and will implement preventative training on how to eliminate age discrimination in the workplace. The technology company will also post job openings for new positions that have not been advertised previously, in order to enable older employees to apply for the opportunity.

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