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Costco's California Wage Statement Class Action is Dismissed

In May 2012, Loretta Apodaca ("Apodaca") alleged that Costco Wholesale Corp. ("Costco") failed to provide her with proper wage statements under California law, which requires companies to provide hours worked and hourly rates. After the Central District of California dismissed Apodaca's case, Apodaca appealed it to the Ninth Circuit.

Apodaca claims that Costco's wage statements do not meet California's standards because the line item, "float overtime," which indicates vacation and holiday pay for managers, made it impossible to differentiate between the hours on a paycheck that were compensated at the regular rate compared to those compensated at the overtime rate. Costco argued that the "float overtime" does not address hours worked.

The district court and the Ninth Circuit both agreed Costco's wage statements followed California laws because the "float overtime" reflects paid time off, not hours worked. The Ninth Circuit decided it did not need to further determine whether Costco caused injury to Apodaca because she did not establish a claim and the lower court properly denied class certification.

The legal team at SFMS has substantial experience litigating employment matters. If you have any questions regarding this subject or this posting, please contact Nick Lussier ([email protected]) or Chiharu Sekino ([email protected]). We can also be reached toll-free at (866) 540-5505.

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Daniels, Melissa. "Costco Dodges Pay-Stub Class Action At 9th Circ.," Law360. Last modified on January 10, 2017.

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