Wage and Hour Lawsuits Filed Against Two California Employers

The lawsuit against Arbor Lodging Management centers on the practice of "time rounding," where employee punch-in and punch-out times are adjusted to the nearest increment, which allegedly resulted in workers being paid less than their actual recorded work time. This case highlights the legal complexities of automated timekeeping systems and the potential for systematic underpayment, even in small increments. Taylor Farms is no stranger to wage and hour litigation, having previously settled a class-action lawsuit for $5.3 million. That earlier case involved allegations of failing to pay for time spent putting on and taking off protective gear, as well as denying proper meal and rest breaks. These types of alleged infractions—unpaid overtime, and missed meal and rest breaks—are among the most common labor code violations in California. Under state law, employees are generally entitled to a 30-minute meal break for shifts over five hours and a paid 10-minute rest break for every four hours worked. Penalties for these violations can be significant, starting with a civil penalty of $50 per employee per pay period for an initial violation, and rising to $100 for subsequent violations, in addition to any back wages owed. Intentional wage theft of more than $950 from a single employee can even be prosecuted as grand theft, a felony in California. The law firm behind both suits, Blumenthal Nordrehaug Bhowmik De Blouw LLP, specializes in employment law and has a track record of filing class-action lawsuits against companies for alleged labor code violations. For HR tech, these cases underscore the critical importance of compliant payroll and timekeeping systems. Automated and unified HR APIs can help prevent such issues by ensuring accurate tracking of all work hours, including overtime and break periods, thereby minimizing legal risk for employers.