New Lawsuits Allege Wage Violations
Two new lawsuits highlight ongoing scrutiny of corporate labor practices. GEA Mechanical Equipment US, Inc. was sued for allegedly failing to track employee time accurately, leading to unpaid overtime. Separately, Veracity Research Co. is accused of failing to provide legally required meal and rest breaks.
The law firm behind both class-action lawsuits, Blumenthal Nordrehaug Bhowmik De Blouw LLP, specializes in employment law and reports having recovered over $1.3 billion for employees, consumers, and investors. The firm frequently files cases alleging violations of the California Labor Code and the federal Fair Labor Standards Act. At the heart of the GEA Mechanical Equipment case are allegations of inaccurate timekeeping. The lawsuit claims the company failed to properly record all hours worked by employees, which can lead to unpaid overtime and minimum wages, particularly if the employer uses time-rounding practices that consistently benefit the company. The complaint against Veracity Research Co. focuses on claims that employees were not provided with their legally mandated meal and rest breaks. The lawsuit alleges that due to demanding work schedules, employees were often unable to take their full, uninterrupted 30-minute meal breaks and were not always relieved of all duties. California law has stringent requirements for employee breaks. For shifts over five hours, a 30-minute, duty-free meal break is required. Additionally, employees are entitled to a paid 10-minute rest period for every four hours worked. Failure to provide compliant breaks results in significant penalties for employers. Under the California Labor Code, an employer must pay an employee one additional hour of pay at their regular rate for each workday that a meal or rest break is not provided. These penalties can accumulate rapidly in a class-action setting. Wage and hour lawsuits are a growing trend in California, with one report indicating an average of 25 new cases filed each day. These lawsuits often arise from what may seem like minor technical violations, but when applied to a large number of employees over time, they can result in substantial liability for employers. Recent high-dollar settlements highlight the financial risks companies face. In 2024, Walt Disney Co. faced a $233 million wage theft class action, and Providence Health & Services was hit with a $98 million verdict for unpaid wages related to meal breaks and timekeeping practices. Security firm G4S also settled a meal and rest break class action for $130 million in 2019.
