Packaging Corporation of America Sued Over Wage Payments
Blumenthal Nordrehaug Bhowmik De Blouw LLP has filed a lawsuit against Packaging Corporation of America. The suit alleges the company failed to accurately record all hours worked, including off-the-clock time, leading to inaccurate wage payments in violation of the California Labor Code.
This lawsuit is grounded in California's strict "off-the-clock" work regulations, which were reinforced by the landmark *Troester v. Starbucks* case. The California Supreme Court ruled that employers must compensate employees for all time worked, even small increments of a few minutes, rejecting the idea that such time could be dismissed as insignificant. Packaging Corporation of America operates numerous facilities in California, including plants in the City of Industry, Kingsburg, Los Angeles, McClellan, San Bernardino, Santa Fe Springs, South Gate, and Vista. The lawsuit's scope could potentially impact hourly employees across these locations where timekeeping and off-the-clock work policies may be similar. This is not the company's only recent legal challenge in California. In 2022, PCA paid $385,000 to settle a racial harassment lawsuit filed by the EEOC on behalf of two Black employees at its McClellan plant. The suit alleged that the company failed to act after workers faced racial slurs, swastikas, and a makeshift noose. Nationally, PCA has a history of regulatory and legal issues. The company has faced numerous citations for workplace safety violations from OSHA and previously settled a multi-million dollar class-action lawsuit related to price-fixing allegations in the containerboard industry. The law firm representing the employees, Blumenthal Nordrehaug Bhowmik De Blouw LLP, specializes in employment law and has a track record of filing class-action lawsuits against companies for alleged California Labor Code violations, including failure to pay proper wages and provide required breaks. Wage and hour lawsuits are a significant and growing risk for California employers, with roughly 25 such cases filed every day. These lawsuits often arise from technical violations that, when applied across a large workforce, can result in substantial financial liability for unpaid wages, penalties, and attorney fees. The manufacturing sector is frequently cited for such labor law violations.
