Summary

Where an employer can and does track the exact time in minutes that its employees work each shift, and those records show that employees were not paid for all the time they worked, neutral time rounding is not a viable defense.

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Gavriiloglou v. Prime Healthcare Management Inc., 83 Cal. App. 5th 595 (2022)

Summary

An arbitrator’s finding that an employee’s alleged Labor Code violations did not occur does not have issue preclusive effect on a related PAGA claim.

Facts

Plaintiff Eleni Gavriiloglou sued Defendants Prime Healthcare Management Inc., Prime Healthcare Management II Inc., Hospital Business Services Inc., and Dr. Prem Reddy, asserting claims for violations of various provisions of the California Labor Code (including for penalties under the California Labor Code Private Attorneys General Act (“PAGA”)) and the California Fair Employment and Housing Act, as well as for wrongful termination and unfair competition. Based on the parties’ arbitration agreement, the trial court compelled all the non-PAGA claims to arbitration, and stayed the PAGA claim. After an evidentiary hearing, the arbitrator issued a final award in favor of Defendants, finding that the alleged Labor Code violations did not occur. Defendants filed a motion for judgment on the pleadings as to the remaining PAGA claim, arguing that Plaintiff lacked standing because the arbitrator’s ruling established that she was not an “aggrieved employee” as a matter of issue...

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