(ECF No. 13)
This is a putative class action lawsuit brought by Plaintiff Luis Guerrero, who was formerly employed by Defendant Halliburton Energy Services, Inc. as a “a nonexempt truck worker, industrial worker, industrial truck driver, industrial vehicle driver, industrial, worker and/or any similar job designation,” on behalf of himself and similarly situated individuals, against Defendant and Does 1-100, inclusive (collectively, “Defendants”). ECF No. 1-1 (“Complaint”). Plaintiff alleges that Defendants violated provisions of the California Labor Code (“CLC”), Business and Professions Code (“CBPC”), and several of the Industrial Welfare Commission’s Wage Orders for at least four years prior to the 2016 filing of this action and continuing to the present. Id.
Defendant first moved to dismiss and/or strike the Complaint on September 9, 2016. ECF No. 4. The Court granted in part and denied in part Defendant’s motion, and granted Plaintiff leave to amend. ECF No. 10.
Plaintiff filed his First Amended Complaint (“FAC”) on November 22, 2016, setting forth the following causes of action: (1) failure to pay wages owed for all hours worked in violation of CLC § 1197.1, items 1 and 4(b) of Industrial Wage Commission Wage Order (‘Wage Order”) 9-2001 (codified at 8 C.C.R. § 11090) and the California Supreme Court’s decision in Morillion v. Royal Packing Co. (2000),
Defendant now moves to dismiss Plaintiffs second, third, fourth, and sixth causes of action for failure to state a claim pursuant to Federal Rule of Civil Procedure 12(b)(6)
Having reviewed the record and the parties’ briefing in light of the relevant law, the Court GRANTS IN PART and DENIES IN PART Defendant’s motion.
I. Rule 12(b)(6)
A motion to dismiss pursuant to Rule 12(b)(6) is a challenge to the sufficiency of the allegations set forth in the complaint. Dismissal under Rule 12(b)(6) is proper where there is either a “lack of a cognizable legal theory” or “the absence of sufficient facts alleged under a cognizable legal theory.” Balistreri v. Pacifica Police Dept.,
To survive a 12(b)(6) motion to dismiss, the plaintiff must allege “enough facts to state a claim to relief that is plausible on its face.” Bell Atl. Corp. v. Twombly,
Finally, in ruling on a Rule 12(b)(6) motion, “[a] court may take judicial notice of [undisputed] matters of public record’ without converting a motion to dismiss into a motion for summary judgment.” Lee v. City of Los Angeles,
II. Rule 12(f)
Federal Rule of Civil Procedure 12(f) permits the Court to “strike from a pleading an insufficient defense or any redundant, immaterial, impertinent, or scandalous matter.” Fed. R. Civ. P. 12(f). “Redundant allegations are those that are needlessly repetitive or wholly foreign to the issues involved in the action.” Cal. Dep’t of Toxic Substances Control v. Alco Pacific, Inc.,
The function of a Rule 12(f) motion is “to avoid the expenditure of time and money that must arise from litigating spurious issues by dispensing with those issues prior to trial.” Whittlestone, Inc. v. Handi-Craft Co.,
DISCUSSION
I. Request for Judicial Notice
Both parties have requested that the Court take judicial notice of several documents, almost all of which are federal court pleadings and orders, and one of which is a copy of an employment offer letter sent by Defendant to Plaintiff. See ECF No. 13 at 11
II. Sufficiency of Complaint
A. Failure to Pay Overtime Wages
Plaintiff alleges that Defendants failed to pay overtime when he and putative class members (“PCMs”) worked over eight hours per day or forty hours per
Defendant seeks dismissal of this claim on the grounds that the Wage Order exempts Plaintiff and PCMs from California’s overtime laws because Plaintiffs and PCMs’ hours are regulated by the federal Department of Transportation (“DOT”). ECF No. 13 at 17. Defendant argues that because the FAC alleges that Defendant owns and operates trucks, employs truck drivers, and that Plaintiff was employed by Defendant as an hourly truck worker or driver, that Plaintiffs hours of service are therefore governed by the DOT’s regulations and are exempt from California’s overtime laws. Id.
Plaintiff contends that his overtime claim is proper because the assertion of an exemption from California overtime laws is an affirmative defense that Defendant bears the burden of demonstrating. ECF No. 15 at 10-11. Specifically, he notes that Defendant has failed to make the requisite showing that the DOT exemption applies to Plaintiff. Id.
The Court agrees with Plaintiff on this issue. While it is true that there are exemptions from California’s overtime laws, see CLC § 515(a), the “[ajpplication of the exemption is ‘limited to those employees plainly and unmistakably within their terms.’” Korte v. Dollar Tree Stores, Inc., No. CIV. S-12-541 LKK/EFB,
B. Failure to Provide Meal and Rest Periods
Plaintiffs third and fourth causes of action pertain to Defendants’ alleged failure to provide the meal and rest peri
In Brinker Restaurant Corp. v. Superior Court, the California Supreme Court provided the following guidance as to an employer’s obligations under CLC § 512 and the Wage Order to provide meal breaks:
Proof an employer had knowledge of employees working through meal periods will not alone subject the employer to liability for premium pay; employees cannot manipulate the flexibility granted them by employers to use their breaks as they see fit to generate such liability. On the other hand, an employer may not undermine a formal policy of providing meal breaks by pressuring employees to perform their duties in ways that omit breaks ... The wage orders and governing statute do not countenance an employer’s exerting coercion against the taking of, creating incentives to forgo, or otherwise encouraging the skipping of legally protected breaks.
To summarize: An employer’s duty with respect to meal breaks under both section 512, subdivision (a) and Wage Order No. 56 is an obligation to provide a meal period to its employees. The employer satisfies this obligation if it relieves its employees of all duty, relinquishes control over their activities and permits them a reasonable opportunity to take an uninterrupted 30-minute break, and does not impede or discourage them from doing so. What will suffice may vary from industry to industry, and we cannot in the context of this class certification proceeding delineate the full range of approaches that in each instance might be sufficient to satisfy the law.
On the other hand, the employer is not obligated to police meal breaks and ensure no work thereafter is performed. Bona fide relief from duty and the relinquishing of control satisfies the employer’s obligations, and work by a relieved employee during a meal break does not thereby place the employer in violation of its obligations and create liability for premium pay under Wage Order No. 5, subdivision 11(B) and Labor Code section 226.7, subdivision (b).
Defendant seeks dismissal of Plaintiffs meal and rest period claims on account of these claims lacking the necessary factual support, specifically noting that Plaintiffs subjective perceptions of being “pressured” are insufficient to make plausible the allegations that Defendant prevented Plaintiff and PCMs from taking meal and rest breaks, as contemplated by Brinker. ECF No. 13 at 18, 23 (citing Brown v. Wal-Mart Stores, Inc., No. C 08-5221 SI,
Plaintiff counters that the FAC provides adequate factual support that he personally experienced missed meal periods and that the FAC’s allegations that “Defendant’s policies and practices do not provide legally complaint meal periods (whether it be the first or second period) are sufficient by themselves to state a cause of action.” ECF No. 15 at 14. (citing Ambriz v. Coca-Cola Company, No. 13-cv-03539,
Both parties have cited cases decided after Brinker that support their positions. On Plaintiffs side are the decisions in Am-briz and Davenport, and on Defendant’s side are the decisions in Brown and Gonzalez. Upon close examination of these cases, the Court agrees with Defendant that the FAC fails to provide sufficient factual support that permits the inference that Defendants are liable for failure to provide meal and rest breaks to Plaintiff and PCMs. First, the Court notes that Davenport is factually distinguishable from this case, in that the plaintiff provided much more factual support than Plaintiff in this case for his pressure-based allegations. See Davenport,
C. Violation of Unfair Competition Law
Plaintiff alleges that Defendants’ failure to pay all straight time and overtime wages earned, failure to provide complaint meal and/or rest breaks and/or compensation in lieu thereof, failure to itemize and keep accurate records, and failure to pay all wages due at the time of termination constitute unlawful activity proscribed the UCL, and that he “is entitled to an injunction and other equitable relief against such unlawful practices.” FAC ¶¶ 161-162. “As a result of their unlawful acts, [Defendants] have reaped and continue to reap unfair benefits at the expense of Plaintiff and the proposed Class he seeks to represent.” Id. ¶ 167. Plaintiff therefore seeks “equitable and injunctive relief, including full restitution and/or disgorgement of all wages and premium pay which have been unlawfully withheld from Plaintiff and [PCMs]as a result of the business acts and practices described herein and enjoining [Defendants] from engaging in the practices described herein” and have requested that the Court “issue a preliminary and permanent injunction prohibiting [Defendants] from continuing to not pay Plaintiff and [PCMs] as discussed herein.” Id. ¶ 169.
“The unfair competition law prohibits ‘any unlawful, unfair or fraudulent act or practice.’ (Bus. Prof. Code
Defendant seeks dismissal of Plaintiffs unfair competition law claim, arguing that it fails as a matter of law because CLC § 226.7 payments for meal and rest break violations and CLC §§ 203 and 226 penalties are not subject to restitution under the UCL.
Plaintiff correctly notes that several California district courts have found that payments due under CLC § 226.7 are recoverable as restitution under the UCL. ECF No. 15 at 19 (citing Tomlinson v. Indymac Bank, F.S.B.,
Furthermore, because Plaintiffs do not oppose Defendant’s motion to dismiss their claim insofar as it seeks CLC §§ 203 and 226 penalties for inaccurate wage statements, the. Court likewise GRANTS the motion to dismiss in this regard. See Pineda v. Bank of America, N.A.,
Therefore, the Court DISMISSES Plaintiffs UCL claim insofar as it pertains to wages and penalties under CLC §§ 203, 226, and 226.7 for failure to state a claim upon which relief can be granted. Because this relief is not available as a matter of law, dismissal shall be WITHOUT LEAVE TO AMEND.
III. Requested Relief
Plaintiffs prayer for relief includes, inter alia, claims for injunctive relief under the UCL and attorney’s fees. FAC ¶ 172. Defendant moves to strike or dismiss these claims for relief. ECF No. 13 at 26-27.
A. Injunctive Relief
Defendant moves to dismiss or strike Plaintiffs request for injunctive relief because Plaintiff, as a former employee of Defendant, lacks standing to seek this form of relief. Id. at 26. Plaintiff opposes on the ground that he filed this action “so that he could represent the interests of similarly situated individuals who have been harmed by Defendant’s unfair business practices.” ECF No. 15 at 20.
The parties have again presented conflicting authorities in support of their respective positions. Defendant first cites to Ellis v. Costco Wholesale Corp.,
Plaintiff cites to Rosenberg v. Renal Advantage, Inc., No. 11-cv-2152-GPC-KSC,
Under Rule 12(f), the Court “may strike from a pleading an insufficient defense or any redundant, immaterial, impertinent, or scandalous matter.” Plaintiffs prayer for injunctive relief is none of these. Moreover, the Ninth Circuit has held that “Rule 12(f) of the Federal Rules of Civil Procedure does not authorize a district court to dismiss a claim for damages on the basis that it is precluded as a matter of law.” Whittlestone, Inc.,
Nevertheless, the Court agrees with Defendant that Plaintiff lacks standing to pursue injunctive relief under the UCL. See Wal-Mart Stores, Inc. v. Dukes,
B. Attorney’s Fees
Defendant moves to strike Plaintiffs request for attorney’s fees on the grounds that there is no statute or agreement between the parties that authorizes an award of attorney’s fees to a party that prevails on a CLC § 226.7 claim. ECF No. 13 at 27. Defendant cites to Kirby, which held that “a prevailing party may recover attorney’s fees only when a statute or an agreement of the parties provides for fee shifting,” and “neither [CLC § 1194] nor [CLC § 218.5] authorizes an award of attorney’s fees to a party that prevails on a [CLC § 226.7] claim.”
Plaintiff opposes on the grounds that he is seeking restitution not only for himself, but also on behalf of all drivers in California, and therefore, the California Code of Civil Procedure (“CCP”) § 1021.5 permits him to seek attorney’s fees. ECF No. 15 at 21-22. In support, Plaintiff cites Pena v. Taylor Farms Pacific, Inc., in which a court in. this district denied a defendant’s motion to dismiss on the basis that the plaintiff had satisfied the three basic criteria required to support an award of attorney’s fees under CCP § 1021.5. Id. (citing
Here, the Court agrees with Plaintiffs argument that attorney’s fees may be appropriate, and declines to strike Plaintiffs request at this time. Courts considering this very issue in similar cases generally find the attorney’s fees may be appropriate under CCP § 1021.5. See, e.g., Dittmar v. Costco Wholesale Corp., No. 14cv1156-LAB (JLB),
CONCLUSION AND ORDERS
For these reasons, Defendant’s motion to dismiss and/or strike (ECF No. 13) is GRANTED IN PART AND DENIED IN PART as follows:
1. The motion to dismiss is DENIED as to Plaintiffs overtime claim;
2. The motion to dismiss is GRANTED with leave to amend as to Plaintiffs meal period and rest period claims;
3. The'motion to dismiss is GRANTED without leave to amend insofar it pertains to Plaintiffs claim for CLC §§ 203, 226, 226.7 wages through the UCL;
4. The motion to dismiss is GRANTED with leave to amend as to Plaintiffs request for injunctive relief;
5. The motion to dismiss is GRANTED •with leave to amend as to Plaintiffs request for attorney’s fees
6. The motion to strike Plaintiffs allegations pertaining to CLC § 226 and failure to maintain accurate time records is DENIED without prejudice.
Plaintiff shall have twenty days from electronic service of this order to file an amended complaint or give notice that he will stand on the current FAC. Plaintiff is cautioned that this will be the last opportunity to amend and that he should only amend if amendment would not be futile based on the law and findings in this Order.
IT IS SO ORDERED.
Notes
. All further references to any “Rule” are to the Federal Rules of Civil Procedure.
. Defendant has additionally moved to strike Plaintiff’s allegations regarding Defendant’s failure to provide accurate itemized wages statements in violation of CLC § 226 and the Wage Order. ECF No. 13 at 25-26. In response, Plaintiff notes that the inclusion of these allegations was a drafting mistake and requests leave to amend. ECF No. 15 at 19-20. Because the Court will grant Plaintiff one last opportunity to amend, Plaintiff’s request is granted and Defendant’s motion to strike is denied without prejudice.
. Pincites refer to CM/ECF pagination located at the top of each page.
. For this reason, Plaintiff's case is distinguishable from the cases cited by Defendant. In Brown v. Wal-Mart Stores, No. C. 08-5221 SI,
. In its Reply, Defendant points to an employment offer letter from Defendant to Plaintiff, dated March 19, 2014, indicating that Plaintiff's anticipated start date as an Operator Assistant was May 5, 2014, and argues that the dates on which Plaintiff has alleged he was denied meal and rest breaks pre-date his employment start date. ECF No. 18 at 2; ECF No. 18, Ex. 2. The Court declined to take judicial notice of this document and therefore will not consider it in deciding this motion.
. The Wage Order in Brinker is substantially similar to the Wage Order at issue in this case.
. Defendant does not seek dismissal of this claim insofar as Plaintiff seeks payment pursuant to CLC § 203 for wages that were due upon termination, otherwise known as “waiting time penalties.”
