A former Save Mart manager in California has filed a class-action lawsuit against the company, accusing them of wage theft and alleging that the total value of wage theft is estimated to be in the millions.
According to a report in The Modesto Bee, Joseph Christiansen, an employee with Save Mart for over 20 years, alleges in his lawsuit that the company intentionally misclassified store managers and assistant managers as exempt from overtime, which allowed Save Mart to deny lawful compensation under the state’s labor laws.
Operating under the name The Save Mart Companies, Save Mart is a well-known grocery store chain headquartered in Modesto, California. Since its founding in 1952, the business has grown throughout Northern Nevada and Central and Northern California.
As of 2024, The Save Mart Companies employ more than 12,000 individuals and operate 194 locations under the Save Mart, Lucky, and FoodMaxx brands.
Wage Theft Allegations
In his complaint, Christiansen said he was regularly required to work extra hours each week performing non-supervisory or nonmanagerial tasks such as stocking shelves and operating cash registers. However, he said he wasn’t properly compensated for doing those jobs.
The lawsuit accuses the company of multiple wage violations, including failing to provide minimum and overtime wages, denying rest and meal breaks, and issuing inaccurate wage statements. The lawsuit also claims the company stole millions of dollars from employees yearly.
Christiansen also said that the company’s illicit practices became worse during the COVID-19 pandemic, putting “profits over its employees.” The class action aims to recover unpaid wages and penalties while forcing Save Mart to change its labor practices.
The complaint further notes that Save Mart routinely settles wage theft claims and continues with the same unlawful practices. In 2020, it settled over unpaid wages for assistant managers.
What is Wage Theft?
Wage theft is the illegal practice of employers withholding earned wages or benefits from their employees. It can happen in several ways, including unpaid overtime, failure to pay minimum wage, requiring employees to work “off the clock,” misclassifying employees as independent contractors or taking illegal deductions from paychecks.
Wage theft is common in industries with hourly or low-wage workers, such as retail, hospitality, and agriculture, but it can occur in any sector.
For employees, wage theft can mean lost income, affecting their ability to meet their basic needs. For businesses, wage theft violations can lead to legal consequences, including fines and penalties.
Labor laws in states like California provide protections for workers and allow them to seek back pay and other damages. Government agencies like the Department of Labor and state labor boards investigate claims, but employees can also seek justice through legal action against unethical employers.
Wage theft is rampant in California, with hundreds of thousands of workers affected by these illegal and unethical practices each year. A 2020 report revealed that California workers lose approximately $2 billion annually due to wage theft. This affects low-wage employees the most.
The California Labor Commissioner’s Office recorded over 19,000 wage theft claims in 2022 alone with industries such as farming, construction, retail, and hotels seeing high rates of violations. Many cases involve unpaid overtime, off-the-clock work, or failure to meet minimum wage.
California has enacted strict labor laws to combat wage theft, but enforcement challenges continue adversely affecting workers across the state.
What to Do If You Suspect Wage Theft
If you believe your employer is stealing wages, you have several options to protect your rights and recover what you are rightfully owed. California has some of the nation’s strongest labor protections. So, taking action can lead to a resolution. Here are some of the steps you can take:
Document everything. Start by gathering evidence. Keep detailed records of hours worked, including overtime, pay stubs, and any communications with your employer about wages. This documentation will be essential if you file a claim or pursue legal action.
Talk to your employer. Sometimes, wage issues arise from misunderstandings or administrative errors. Discuss the issue with your employer or HR department first, providing the documentation of your hours and wages. This may help resolve simple errors without escalating the situation.
File a wage claim. If talking to your employer fails to resolve the issue, file a wage claim with the California Division of Labor Standards Enforcement (DLSE). The DLSE, which is part of the Labor Commissioner’s office, investigates wage theft claims and can help you recover unpaid wages, overtime, and penalties. The process includes a hearing and if your claim is upheld, your employer may have to pay back wages, interest, and fines.
Contact a California employment lawyer. Consult a wage theft lawyer for complex cases or if your employer retaliates against you. California law prohibits retaliation, which means you cannot be punished or fired for reporting wage theft.
A labor law attorney can help you understand your rights and may help you file a wage and hour lawsuit. Group lawsuits or class actions are sometimes possible if multiple employees are affected by similar wage practices.
File a complaint with the U.S. Department of Labor. If your case involves federal wage issues, such as violations of the Fair Labor Standards Act (FLSA), you may also file a complaint with the U.S. Department of Labor’s Wage and Hour Division.
How an Experienced Wage Theft Lawyer Can Help
A lawyer who has successfully handled wage lawsuits in the past can be instrumental in helping employees recover unpaid wages and hold employers accountable for wage theft or labor violations. They can help by assessing the specifics of your case, including reviewing employment records, pay stubs, time logs, and other documentation to determine if wage laws were violated. This analysis is crucial to build a solid case and ensure you receive all the compensation you owe, such as back pay, unpaid overtime, or missed meal and rest breaks.
Lawyers are also skilled negotiators and can handle communications with the employer or their legal team, reducing the chances of retaliation or pressure tactics employers might use against workers who pursue claims. If needed, they can represent you in court, presenting evidence and arguing on your behalf to maximize potential damages.
When multiple employees are subject to the same wage violations, an attorney can also determine whether a class action lawsuit is appropriate. Wage and hour lawyers stay current on complex and changing labor laws, which means they can guide you through legal proceedings, increasing your chances of success and ensuring compliance with filing deadlines and procedures.
Source: https://www.modbee.com/news/business/biz-columns-blogs/biz-beat/article294507859.html
