The California Court of Appeal’s recent decision in Seviour-Iloff v. LaPaille covered a variety topics, favoring employers and employees. Among them, the decision clarified the limitations period on a Labor Commissioner wage claim, made clear that an award under the Unfair Competition Law (UCL) (including a longer limitations period) is not mandatory, recognized a more employer-friendly defense against liquidated damages for minimum wage violations, held private plaintiffs cannot sue for penalties under California paid sick leave law, and that the value of rent for lodging provided to an employee must be included in calculating waiting time penalties.

Work Only For Rent Leads to Wage Claims

Plaintiffs Laurance Iloff and Elsie Seviour-Iloff performed various tasks on the property of Bridgeville Properties, Inc. (BPI). BPI provided them with free rent, but otherwise did not pay the couple. After BPI terminated the plaintiffs, they filed wages claims with the state Labor Commissioner. The couple sought allegedly unpaid regular wages, overtime, liquidated damages for failure to pay minimum wage, and waiting time penalties. After a hearing, the Labor Commissioner ruled in favor of the plaintiffs, finding an oral employment agreement to perform services in lieu of paying $650 in monthly rent. The agency found BPI’s chief executive officer and chief financial officer, Cynthia LaPaille, personally liable.

LaPaille and BPI appealed for a trial de novo in Humboldt County Superior...

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