Steve Landy v. Pettigrew Crewing, Inc.
2:19-cv-07474
C.D. Cal.Nov 22, 2019Background
- Plaintiff Steve Landy (a cameraman) sued Pettigrew Crewing in state court for failure to timely pay wages (Cal. Lab. Code § 204), inaccurate wage statements (§ 226), and PAGA penalties; claims cover the year before LWDA notice (July 9, 2018–July 8, 2019).
- Defendant removed under federal-question jurisdiction (LMRA § 301), asserting a Collective Bargaining Agreement (CBA) with the Union modified pay periods and thus preempts § 204 claims.
- The CBA (retroactive to July 1, 2018) required weekly/biweekly pay and provided the employer’s payroll period could be up to 30 days (effective Oct. 1, 2018), longer than the maximum under § 204.
- The court applied the Ninth Circuit two-step LMRA preemption framework (Curtis/Kobold): if a right exists solely because of the CBA, § 301 preemption applies.
- The court held that § 204(c) allows a CBA to provide alternative pay arrangements (analogous to § 510(a) in Curtis), so § 204 claims arising during the CBA period (later § 204 claims) are preempted and removable; the court exercised supplemental jurisdiction over earlier § 204 claims and all § 226 claims.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether § 204 wage‑timing claims are preempted by LMRA § 301 for pay periods covered by the CBA | Landy: § 204 is a state right not created by CBA; CBA is an affirmative defense and cannot supply federal jurisdiction | Pettigrew: CBA expressly provides different pay arrangements; § 204(c) allows CBAs to replace default timing, so § 301 preempts | Held: Later § 204 claims (Oct. 1, 2018–July 8, 2019) are preempted; federal question jurisdiction proper |
| Whether § 204(c) should be treated differently from § 510(a) (Curtis) so that CBA does not displace the statute | Landy: § 204(c) does not expressly say other subsections “do not apply,” so default timing still governs | Pettigrew: § 204(c) operates like § 510(a); the statute permits CBAs to set alternative pay terms | Held: Court follows Curtis—§ 204(c) permits CBAs to supplant default timing; Curtis controls |
| Whether the court should keep the remaining state claims (earlier § 204 and § 226) after finding federal jurisdiction over later § 204 claims | Landy: If removal is only proper for later periods, remand the rest to state court | Pettigrew: The state claims arise from the same operative facts and should be retained under § 1367 | Held: Court exercises supplemental jurisdiction over earlier § 204 claims and all § 226 claims; no original federal jurisdiction exists over § 226 claims |
Key Cases Cited
- Curtis v. Irwin Indus., Inc., 913 F.3d 1146 (9th Cir. 2019) (Ninth Circuit two‑step test; CBA can create alternative statutory rights and trigger § 301 preemption)
- Kobold v. Good Samaritan Reg'l Med. Ctr., 832 F.3d 1024 (9th Cir. 2016) (definition of rights that "exist solely as a result of the CBA")
- Allis‑Chalmers Corp. v. Lueck, 471 U.S. 202 (1985) (state law claims that depend on CBA terms must be resolved under federal law)
- Caterpillar Inc. v. Williams, 482 U.S. 386 (1987) (well‑pleaded complaint rule for removal and artful pleading doctrine)
- Metro. Life Ins. Co. v. Taylor, 481 U.S. 58 (1987) (federal preemption can convert state claims into federal ones when completely preempted)
- Livadas v. Bradshaw, 512 U.S. 107 (1994) (§ 301 preemption does not displace nonnegotiable state rights categorically)
- United Mine Workers of Am. v. Gibbs, 383 U.S. 715 (1966) (supplemental jurisdiction over state claims sharing common nucleus of operative fact)
- City of Chicago v. Int'l Coll. of Surgeons, 522 U.S. 156 (1997) (factors—judicial economy, convenience, fairness, comity—for exercising supplemental jurisdiction)
