Company also allegedly misclassified 40 managers

In a recent case, the California Court of Appeal ruled that the labor commissioner for the State of California did not have the authority to issue a deposition subpoena to a company facing a former employee’s allegations of legal violations.

Nor-Cal Venture Group, Inc. – the defendant in the case of Garcia-Brower, as Labor Commissioner, v. Nor-Cal Venture Group, Inc. – operated more than 20 fast food restaurants in the Sacramento area. In 2017, an ex-employee claimed that Nor-Cal wrongfully denied overtime pay.

Read more: Jack in the Box manager sues for alleged failure to pay overtime wages

A deputy labor commissioner for California provided Nor-Cal with subpoenas asking for time records, payroll records, records showing the salaries of employees classified as restaurant managers, and other business records. Nor-Cal complied with the subpoenas.

The deputy then issued a wage citation to Nor-Cal requiring it to pay over $900,000 in penalties and unpaid overtime wages from July 2014 to March 2017 for the alleged misclassification of around 40 managers.

Nor-Cal requested an informal hearing, which was scheduled for January 2019.

Deposition sought

A month before the hearing, the labor commissioner’s counsel provided Nor-Cal with a subpoena under section 11181 of California’s Government Code and section 92 of California’s Labor Code. The subpoena ordered the persons who were working for Nor-Cal and having the most knowledge on...

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