Arana v. Rudy's Wholesale Corp. CA2/1
B339876
Cal. Ct. App.Apr 29, 2025Background
- Fernando Arana worked for Rudy’s Wholesale Corp. as a general laborer for about 30 years without recording his work hours; Rudy’s did not require or track his time.
- Arana was paid a fixed weekly wage ($420), which did not reflect an hourly breakdown nor hours worked, and alleged he was not paid minimum wage or overtime, nor provided required meal and rest breaks.
- Upon Rudy’s closure, Arana sued for multiple wage and hour violations under California law, including minimum wage, overtime, rest/meal breaks, wage statement accuracy, and unfair competition.
- At summary judgment, the trial court found for Arana, relying on burden-shifting where an employer fails to keep proper time records.
- The appellate court reversed, finding that the burden-shifting principle applies only after liability is established, not at the summary judgment stage when triable issues remain as to whether violations occurred.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Overtime and Minimum Wage Violations | Arana worked more hours and was underpaid; lack of records shifts burden to Rudy’s to prove otherwise | Arana did not work overtime or less than minimum wage, was paid cash in addition to checks | Triable issues exist; summary adjudication improper |
| Meal Breaks | Arana was never given proper 30-minute meal breaks; no record-keeping triggers presumption of violation | Meal breaks were always provided, as witnessed by Teresa | Triable issue exists; summary adjudication improper |
| Rest Breaks | Rest breaks were not provided or authorized | Rest breaks were given; Arana sometimes did personal tasks | Sufficient proof of violation, but damages are not fixed due to factual disputes |
| Wage Statement Accuracy | Wage statements were inaccurate and incomplete, violating statutory requirements | Wage statements incomplete but no willful violation | Summary adjudication for Arana on this claim; statutory penalties apply |
Key Cases Cited
- Hernandez v. Mendoza, 199 Cal.App.3d 721 (Cal. Ct. App. 1988) (burden-shifting in wage/hour actions applies after fact of liability is established, not before)
- Anderson v. Mt. Clemens Pottery Co., 328 U.S. 680 (U.S. 1946) (adopts burden-shifting for damages calculation where employer lacks required records)
- Brinker Restaurant Corp. v. Superior Court, 53 Cal.4th 1004 (Cal. 2012) (meal break presumption where records are missing)
- Donohue v. AMN Services, LLC, 11 Cal.5th 58 (Cal. 2021) (adopts rebuttable presumption of violation for missing meal period records at summary judgment)