Opinion

Yeffri Ulloa v. Blackstone Consulting, Inc.

Court
District Court, C.D. California
Filed
Jan 27, 2025
Cited by
0 cases
Authority
More cited than 33.8%

The opinion

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8 UNITED STATES DISTRICT COURT

9 CENTRAL DISTRICT OF CALIFORNIA

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11 YEFFRI ULLOA, Case No.: 5:24-cv-01134-HDV-SKx

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ORDER (1) DENYING DEFENDANTS’

13 Plaintiff,

MOTION TO DISMISS PURSUANT TO

14 RULE 12(B)(6) [DKT. NO. 13]; AND (2)

GRANTING PLAINTIFF’S MOTION TO

15 v. REMAND [DKT. NO. 15]

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BLACKSTONE CONSULTING, INC. et al.,

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Defendants.

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1 I. INTRODUCTION

2 This putative class action arises from Plaintiff Yeffri Ulloa’s employment as a security guard

3 with Defendants Blackstone Consulting Inc. and Kaiser Foundation Hospital (“Defendants”).

4 Plaintiff alleges that Defendants failed to pay him (and the class) for overtime, meal breaks, and rest

5 periods as required by California wage and hour laws.

6 Before the Court are two motions: (1) Defendants’ Motion to Dismiss pursuant to Fed. R.

7 Civ. P. 12(b)(1) and 12(b)(6), and (2) Plaintiff’s Motion to Remand. Defendants contend in the main

8 that all of Plaintiff’s state law claims are preempted by Section 301 of the Labor Management

9 Relations Act (“LMRA”) because they are expressly predicated on (and require interpretation of)

10 rights created by the parties’ collective bargaining agreement (“CBA”). More specifically,

11 Defendants maintain that pursuant to California Labor Code Sections 514 and 512, Plaintiff’s wage

12 claims cannot be asserted under California law because the parties’ most recent CBA provides for

13 wage payments of “30 percent more than the state minimum wage.” Motion to Dismiss at 8–9.

14 But while Plaintiff’s current CBA does provide for the 30% premium set forth in Section 514

15 and 512, the prior CBA—which applied for a significant period of Plaintiff’s employment and most

16 of the four-year damages period for the class—did not meet this premium threshold either for

17 Plaintiff or for the other putative class members.1 For this reason, California Labor Code Sections

18 514 and 512 do not apply. The Court further finds that Plaintiffs’ wage and hour claims do not

19 “vindicate a right or duty created by the CBA itself” nor do they require a legal interpretation of the

20 CBA(s), and are therefore not preempted under the LMRA under the test set forth by the Ninth

21 Circuit in Burnside v. Kiewit Pac. Corp. 491 F.3d 1053, 1059–60 (9th Cir. 2007). Because there is

22 no preemption, the entirety of the action must be remanded to state court.

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1 Notably, Defendants did not identify or address the first CBA in their motion to dismiss, nor did

27 they provide a satisfactory response for ignoring this key document. While the Court cannot find

that its omission by Defendants’ counsel was deliberate or sanctionable, the failure by counsel to

28 even address this document is nonetheless deeply concerning.

1 II. FACTUAL BACKGROUND

2 Plaintiff began working as a hospital security guard in June 2023. Complaint ¶ 2. Plaintiff’s

3 duties include patrolling the premises, opening and closing doors, and checking badges. Id.

4 Plaintiff alleges that Defendants have failed to pay him overtime in violation of California

5 state wage and hour laws. Complaint ¶ 15. Plaintiff states that employees were required to work off

6 the clock by coming in early and leaving work late without clocking in for the entire time,

7 completing pre-shift and post-shift tasks without clocking in, and working through meal periods and

8 rest period. Id. Plaintiff also avers that Defendants failed to provide employees with timely and

9 uninterrupted thirty (30) minute meal periods for days on which they worked more than five hours,

10 and failed to provide a second period for days in which they worked more than ten hours. Id. ¶ 17.

11 Finally, Plaintiff maintains that Defendants did not provide rest periods of at least ten minutes per

12 four hours worked as required by California law. Id. ¶ 18.

13 Plaintiff filed his Complaint against Defendants in Riverside Superior Court on April 23,

14 2024. Plaintiff’s Complaint includes claims for (1) failure to pay overtime wages, (2) failure to pay

15 minimum wages, (3) failure to provide meal periods, (4) failure to provide rest periods, (5) waiting

16 time penalties, (6) wage statement violations, (7) failure to pay timely wages, (8) failure to

17 indemnify, (9) violation of Labor Code Section 227.3, and (10) unfair competition. Complaint ¶¶

18 37-106. Specifically, Plaintiff seeks damages for the class for the four-year period from 2020-

19 2024. Id. ¶¶ 15-26. Defendants removed the case to this Court on May 29, 2024 on the basis of

20 LMRA preemption. [Dkt. No. 1].

21 Defendants filed their Motion to Dismiss (“Motion”) on June 17, 2024, and Plaintiff filed his

22 Motion to Remand on June 28, 2024. [Dkt. Nos. 13, 15]. The only CBA attached or discussed in

23 Defendants’ Motion was the most recent CBA. On September 4, 2024, the Court ordered

24 Defendants to file a supplemental declaration with the previous collective bargaining agreement that

25 governed Plaintiff's employment beginning in June 2023. [Dkt. No. 27]. Defendants filed their

26 supplemental declaration with the prior CBA on September 6, 2024. [Dkt. No. 28].

27 Upon receipt of the supplemental submission, the Court heard oral argument on both motions

28 on December 12, 2024, and took the matters under submission. [Dkt. No. 33].

1 III. LEGAL STANDARD

2 Section 301 of the LMRA states in relevant part, that “[s]uits for violation of contracts

3 between an employer and a labor organization ... may be brought in any district court of the United

4 States.” 29 U.S.C. § 185(a). Although preemption is not mentioned specifically in the statute, courts

5 have consistently held the LMRA expressly “authoriz[es] federal courts to create a uniform body of

6 federal common law to adjudicate disputes that arise out of labor contracts.” Curtis v. Irwin Indus.,

7 Inc., 913 F.3d 1146, 1151 (9th Cir. 2019) (emphasis added); see also Allis-Chalmers Corp. v. Lueck,

8 471 U.S. 202, 210 (1985). For this reason, actions “alleging a violation of a provision of a labor

9 contract must be brought under § 301 and be resolved by reference to federal law.” Lueck, 471 U.S.

10 at 210. “A state rule that purports to define the meaning or scope of a term in a contract suit

11 therefore is pre-empted by federal labor law.” Id.2

12 The Ninth Circuit in Burnside v. Kiewit Pac. Corp. 491 F.3d 1053, 1059–60 (9th Cir. 2007)

13 established a two-part test to determine whether state law claims are preempted by Section 301.

14 First, the Court must determine whether the claim in question seeks purely to “vindicate a right or

15 duty created by the CBA itself” or is merely asserting a right conferred by state law. Columbia Exp.

16 Terminal, LLC v. Int’l Longshore & Warehouse Union, 23 F.4th 836, 842 (9th Cir. 2022); see also

17 Curtis, 913 F.3d at 1152. If the right exists only under the CBA, then the claim is preempted, and no

18 further analysis is needed. Columbia Export Terminal, 23 F.4th at 842.

19 If not, however, courts must perform a secondary analysis to determine whether a plaintiff’s

20 state law right is “substantially dependent” on an analysis of the CBA. Id.; see also Caterpillar, 482

21 U.S. at 394; Burnside, 491 F.3d at 1060. The critical question here is “whether the claim cannot be

22 resolved by simply ‘look[ing] to’ versus ‘interpreting’ the CBA.” Curtis, 913 F.3d at 1152

23 (quoting Kobold v. Good Samaritan Reg'l Med. Ctr., 832 F.3d 1024, 1033 (9th Cir. 2016)). The

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25 2 “The presence or absence of federal question jurisdiction is governed by the ‘well-pleaded complaint

26 rule,’ which provides that federal jurisdiction exists only when a federal question is presented on the

face of the plaintiff's properly pleaded complaint.” Caterpillar Inc. v. Williams, 482 U.S. 386, 392

27 (1987). However, the LMRA “converts an ordinary state common law complaint into one stating a

federal claim for purposes of the well-pleaded complaint rule.” Metro. Life Ins. v. Taylor, 481 U.S.

28 58, 65 (1987).

1 Ninth Circuit has “stressed that ‘interpretation’ is construed narrowly in this context”3 and that “[a]t

2 this second step of the analysis, ‘claims are only preempted to the extent there is an active dispute

3 over ‘the meaning of contract terms.’ ” Id. (quoting Livadas v. Bradshaw, 512 U.S. 107, 124

4 (1994)) (emphasis added).

5 IV. DISCUSSION

6 A. Claim One: Overtime Violations

7 Plaintiff’s first claim asserts that Defendants violated section 510(a) of the California Labor

8 Code by failing to pay Plaintiff for required overtime. Complaint ¶ 41. Plaintiff argues that

9 Defendants violated this section by failing to pay for time he spent working off the clock—including

10 uncompensated time spent coming in early and leaving work late, completing off-clock pre-shift and

11 post-shift tasks, and working through meal and rest periods. Complaint ¶ 15.

12 The gravamen of Defendants’ preemption argument vis-à-vis this overtime claim is the

13 contention that the wage requirements of Section 510(a) do not apply because Plaintiff was covered

14 by a collective bargaining agreement that meets the requirements of Section 514 by providing

15 Plaintiff with premium pay greater than 130% of the state minimum wage. See Def’s Mtn. to

16 Dismiss at 8–9. This argument relies on two interdependent sections of the California Labor Code.

17 First is Section 510(a)(2), which states that the overtime provisions of this section “do not apply to

18 the payment of overtime compensation to an employee working pursuant to . . . . [a]n alternative

19 workweek schedule adopted pursuant to a collective bargaining agreement pursuant to Section 514.”

20 Cal. Lab. Code § 510(a)(2). And second is Section 514, which states in relevant part that “Sections

21 510 and 511 do not apply to an employee covered by a valid collective bargaining agreement if the

22 agreement expressly provides for the wages, hours of work, and working conditions of the

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3 “Interpretation is construed narrowly; it means something more than ‘consider,’ ‘refer to,’ or

‘apply.’” Balcorta v. Twentieth Century-Fox Film Corp., 208 F.3d 1102, 1108 (9th Cir. 2000)

26 (internal citations omitted). Defendants bear the burden of establishing jurisdiction and “any doubt

27 is resolved in favor of remand.” Plute v. Roadway Package Sys., Inc., 141 F. Supp. 2d 1005, 1007

(N.D. Cal. 2001) (citing Boggs v. Lewis, 863 F.2d 662, 663 (9th Cir. 1988)).

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1 employees, and if the agreement provides premium wage rates for all overtime hours worked and a

2 regular hourly rate of pay for those employees of not less than 30 percent more than the state

3 minimum wage.” Cal. Lab. Code § 514. Relying on these two sections, federal and state courts

4 have routinely held that, if the relevant CBA covering a plaintiff’s overtime claim meets the

5 requirements of Section 514, then that claim exists “solely as a result of the CBA” and is therefore

6 preempted under the LMRA. See Curtis, 913 F.3d at 1154.4

7 Here, the terms and conditions of Plaintiff’s employment with Defendants (which began in

8 June 2023 and continues to the present) are governed by two CBA’s—the first effective from

9 November 1, 2018 through October 31, 2023, and the second effective from November 1, 2023 to

10 the present. See Declaration of Pankit Doshi (“Doshi Decl.”), Ex. A at Art. 35 [Dkt. No. 13-2];

11 Supplemental Declaration of Pankit Doshi (“Supp. Doshi Decl.”), Ex. A at Art. 35 [Dkt. No. 28].

12 The first CBA also governs almost all of the four-year damages period invoked by the Plaintiff for

13 the putative class. See Complaint ¶¶ 41-43.

14 Plaintiff cannot dispute that the second (later) CBA meets the 130% premium pay threshold

15 of Section 514. The 2023 pay rate specified in the second CBA for the Inland Empire (where

16 Plaintiff works) is $20.72—more than 30% greater than the 2023 California minimum wage of

17 $15.50.5 See Doshi Decl., Ex. A at Art. 9; see also www.dir.ca.gov/dlse/FAQ_MinimumWage.

18 And the rate for 2024 and thereafter is similarly in excess of the 130% threshold. Id.

19 But Defendants cannot dispute that the first CBA (which covered the first period of

20 Plaintiff’s employment) does not meet this 130% threshold. For example, the wage rate in Riverside

21 County applicable to Plaintiff when he first started in June 2023 was $16.00—clearly nowhere near

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4 Section 514 is considered an affirmative defense regarding the exemption from overtime laws, and

24 the employer bears the burden of proving the employee’s exemption. See Martinez v. Omni Hotels

Mgmt. Corp., 514 F. Supp. 3d 1227, 1238 (S.D. Cal. 2021) (citing Corning Glass Works v. Brennan,

25 417 U.S. 188, 197–98 (1974)).

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5 130% of the 2023 minimum wage is $20.15. The second CBA also appears to meet the premium

27 pay threshold for all other employees, a requirement of Section 514. See Section 514 discussion,

infra.

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1 the $20.15 premium pay level required under Section 514.6 See Supp. Doshi Decl., Ex A at Art. 9.

2 The same deficiency also applies to the other counties covered by the CBA. See, e.g., Id., Art. 9

3 (Los Angeles County ($17.50), Orange County ($17.75), San Diego County ($18.00)).

4 The key first question therefore becomes the following: Does California Labor Code Section

5 514 provide a basis for satisfying Step One of the Burnside test when a portion of Plaintiff’s claim is

6 governed by a CBA that fails to meet the premium pay threshold? The Court concludes that it does

7 not. Four separate reasons support this finding.7

8 First, a piecemeal approach to Section 514 is inconsistent with the plain language of

9 Burnside and its progeny. Step One of the Burnside test asks whether the “right exists solely as a

10 result of the CBA. . . .” Burnside 491 F.3d at 1059 (emphasis added). Stated differently, “[t]he

11 essential inquiry is this: Does the claim seek purely to vindicate a right or duty created by the CBA

12 itself?” Columbia Export Terminal, 23 F.4th at 842 (quoting Curtis, 913 F.3d at 1152)(emphasis

13 added). Here, Plaintiff’s overtime claim cannot be said to arise “solely” or “purely” out of a CBA

14 because for the earlier damages period the right arose out of California wage and hour law. Section

15 514 cannot exempt the application of California law for this earlier period since there was no

16 qualifying CBA to nullify the applicability of Section 510(a).

17 Second, Defendants’ argument is inconsistent with the plain language of Section 514. Again,

18 this section states:

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Sections 510 and 511 do not apply to an employee covered by a valid collective bargaining

20 agreement if the agreement expressly provides for the wages, hours of work, and working

conditions of the employees, and if the agreement provides premium wage rates for all

21 overtime hours worked and a regular hourly rate of pay for those employees of not less than

30 percent more than the state minimum wage.

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Cal. Lab. Code § 514 (emphasis added). In the present action, the second CBA—the purportedly

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25 6 The first CBA also provided, “Minimum wages for the duration of this agreement shall be no less

than $1.00 over any applicable state or municipal minimum wage. Supp. Doshi Decl., Ex. A at Art.

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9.5. But even adding this into the base wage rate would be well below the premium benchmark.

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7 The Court has been unable to find any binding Ninth Circuit or California precedent addressing this

28 situation, and the parties have not cited to any dispositive caselaw.

1 “valid” CBA—does not provide premium wages rates for “all overtime hours worked” because it

2 does not apply these qualifying wages to Plaintiff’s overtime hours worked from June through

3 October 2023. Ipso facto, it cannot exempt Plaintiff’s overtime rights under California law.

4 Third, Section 514 is inapplicable on this record because the first CBA does not provide

5 premium wages to the “other employees” covered by the agreement. There is a split among district

6 courts on the question of whether Section 514 requires a qualifying CBA to provide premium wages

7 merely to the plaintiff or to all other employees in the bargaining unit. See Rooney v. Save Mart

8 Supermarkets, No. 2:20-CV-00671-JAM (FEBx), 2020 WL 3819481, at *3 (E.D. Cal. July 8, 2020)

9 (“CBA does not meet Section 514 ’s requirements [if] it does not meet the requirements with respect

10 to all employees.”) (emphasis in original); Sarmiento v. Sealy, Inc., No. 18-CV-01990-JST, 2019

11 WL 3059932, at *9 (N.D. Cal. July 12, 2019) (concluding that whether a collective bargaining

12 agreement provides a sufficient regular hourly rate of pay under section 514 “must be determined by

13 reference to all of the covered employees”); Nordman v. Bon Appetit Mgmt. Co., No. 23-CV-00703-

14 DMR, 2023 WL 3006563, at *3 (N.D. Cal. Apr. 18, 2023) (Defendants must establish that the CBAs

15 provide a “regular hourly rate of pay ... of not less than 30 percent more than the state minimum

16 wage” for all employees covered by the CBAs). But see Huerta v. Doubletree Emp. LLC, No. SA-

17 CV-23-02433-CJC-ADSX, 2024 WL 890548, at *3 (C.D. Cal. Mar. 1, 2024) (reasoning that the

18 legislative intent and policy considerations behind CBAs would be undermined “were the Court to

19 conclude that simply because the CBA does not fulfill Section 514’s requirements as to some

20 employees, neither Section 504 nor Section 301 would apply to any of the employees.”); Sachs v.

21 Pankow Operating, Inc., No. 2:21-CV-08998-ABA-DSX, 2022 WL 489696, at *6 (C.D. Cal. Feb.

22 16, 2022) (concluding that because the vast majority of employees were paid at the rate required

23 under Section 514, the fact that a fraction of employees were not, should not foreclose the

24 application of Section 514).

25 But the better-reasoned approach—and the one most faithful to the text of the statute—is to

26 require a finding that the 130% wage premium applies to all union employees. Judge Gonzalo

27 Curiel of the Southern District of California provides a succinct and persuasive textual analysis:

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1 The statute references “employee” or “employees” in three phrases: (1) “an employee” to

2 which the statute applies; (2) “the employees” for which the CBA must provide the wages,

hours, and working conditions; and (3) “those employees,” which must refer back to either

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(1) or (2). The difference between “an employee” and “the employees” is clear: “an

4 employee” merely delineates who the exemption applies to and is in singular form, while

“the employees” refers to plural “employees” for which the CBA must provide certain

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conditions. It is logical that “those employees” refers to “the employees” for which the CBA

6 must provide wages, hours of work, and working conditions, as this is the statute's only other

reference to plural “employees.” Further, “those employees” and “the employees” are stated

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in the context of the statute's two requirements for the exemption to apply, while “an

8 employee” describes who the statute applies to. Thus, “those employees” who must earn

130% of the state minimum wage are necessarily the same employees for which the CBA

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must provide the wages, hours, and working conditions.

10 Allmaras v. Univ. Mech. & Eng'g Contractors, Inc., No. 24-CV-01581-GPC-SBC, 2024 WL

11 4860804, at *4 (S.D. Cal. Nov. 20, 2024). The upshot of this finding is that Section 514 cannot

12 apply here for the simple reason that the “other employees” in the Plaintiff’s bargaining unit

13 undisputedly did not receive premium wages for the damages period, and therefore Plaintiff’s

14 overtime claim must be viewed as arising out of state law and not purely a CBA. Cf. Huffman v.

15 Pac. Gateway Concessions LLC, No. 19-CV-01791-PJH, 2019 WL 2563133, at *6 (N.D. Cal. June

16 21, 2019) (“Because the San Jose CBA plainly failed to provide a regular hourly rate of pay of not

17 less than 30 percent more than the state minimum wage for at least some employees, Section 514

18 does not bar Section 510 from applying to plaintiff. As such, plaintiff's asserted cause of action

19 involves a right conferred upon an employee by virtue of state law, not by a CBA.”).

20 And fourth, several district courts facing similar facts involving two or more CBAs (covering

21 different time periods) have assumed, albeit without substantive analysis, that all CBAs would have

22 to satisfy the premium wage requirements of Section 514. In Garza v. WinCo Holding, Inc., No.

23 1:20-CV-01354-JLT-HBK, 2022 WL 902782 (E.D. Cal. Mar. 28, 2022), for example, the court

24 noted that two CBAs applied to the relevant employment period and concluded that the premium

25 rates would need to apply to all employees covered by the two CBAs:

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The first CBA, attached as Exhibit A to the notice of removal, pertains to the employment

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period from August 11, 2014, through August 10, 2019. The second CBA, attached as

28 Exhibit B, covers employment from August 11, 2019, through August 10, 2024. . . . Put

1 another way, Defendants must establish that the CBAs provide a “regular hourly rate of pay

2 ... of not less than 30 percent more than the state minimum wage” for all employees covered

by the CBAs.

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4 Id. at *3 (internal citations omitted)(emphasis added). The court repeated this finding later in its

5 opinion: “whether Garza's overtime claims are preempted depends on whether the CBAs meet these

6 three requirements.” Id. at *11 (emphasis added). Similarly, in Kilbourne v. Coca-Cola Company,

7 No. 14CV984-MMA (BGS), 2014 WL 11397891, at *5 (S.D. Cal. July 14, 2014), plaintiff was

8 subject to two separate CBAs governing different periods of employment:

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This agreement, referred to as the “BCI CBA,” governed Plaintiff's employment from March

10 20, 2010 until May 31, 2011, when the BCI CBA expired. The second agreement was

negotiated between Coca-Cola Refreshments USA, Inc. – Oceanside Facility and the

11 Teamsters Local No. 683 labor union. This agreement, referred to as the “CCR CBA,”

governed Plaintiff's employment from June 1, 2011 until February 11, 2013, the date

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Plaintiff's employment terminated.

13 Id. at *1. Judge Anello of the Southern District of California analyzed Defendants’ argument that

14 Section 514 applied to the plaintiff’s overtime claims under both CBAs:

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Defendants assert the CBAs at issue—the BCI CBA and the CCR CBA—satisfy the three

16 requirements of section 514 and therefore exempt Plaintiff from section 510’s default

overtime provisions. First, Articles 17 and 18 of the CBAs provide for the wages, hours of

17 work, and working conditions of the employees subject to the CBAs terms. See Arts. 17, 18.

Second, the CBAs expressly provide premium wages for all overtime hours work. . . . And

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finally, Article 17 of the CBAs provides a regular hourly rate of at least 30% above state

19 minimum wage.

20 Id. at *5. The court pointed out that there was no dispute that the premium wage threshold was met

21 for both CBAs: “Plaintiff does not dispute that the CBAs govern Plaintiff's employment for the

22 relevant time period—from March 20, 2010 through February 11, 2013. Additionally, Plaintiff does

23 not dispute that the CBAs satisfy the first and third requirements of section 514.” Id. at *6. And

24 Judge Anello concluded by applying the relevant test to both CBAs: “Because the CBAs' definition

25 of “overtime” applies, the Court finds the CBAs satisfies the second requirement by providing for

26 premium wage rates for all overtime hours worked.” Id. at *8. See also Nordman v. Bon Appetit

27 Mgmt. Co., No. 23-CV-00703-DMR, 2023 WL 3006563, at *4 (N.D. Cal. Apr. 18, 2023)(“In sum,

28 because the CBAs do not provide a minimum hourly rate of not less than 30 percent more than the

1 state minimum for all covered employees between 2019 and the present, . . . Plaintiffs’ overtime

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claim does not exist ‘solely as a result of the CBA[s]’ and the claim is not preempted at step one of

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the LMRA preemption test.”)(cleaned up). While these district court decisions are not binding on

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this Court, they reaffirm the commonsensical conclusion that Section 514 must be applied to the

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entirety of Plaintiff’s employment period. Step One of Burnsides is not satisfied.

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As to the second step in Burnside, Defendants do not advance any argument—presumably on

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the assumption that the Section 514 argument is fully dispositive. See Motion to Dismiss at 9. But

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even if one had been made, it would not prevail. Again, the test is “whether a plaintiff's state law

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right is substantially dependent on analysis of the CBA which turns on whether the claim cannot be

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resolved by simply looking to versus interpreting the CBA.” Curtis, 913 F.3d at 1153. Here, no

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interpretation is necessary. It is clear from the CBAs that all work performed in excess of forty

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hours in a workweek, or more than eight hours in a workday, is overtime and the employees shall be

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compensated at the rate of time and one-half the employees’ hourly rate. See Doshi Decl., Ex. A at

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Art. 10; Supp. Doshi Decl., Ex. A at Art. 10. There is no interpretation required to calculate the

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overtime wage rate or to determine the number of overtime hours—all a court must do is refer back

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to the agreement.

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B. Claim Three: Meal Break Violations

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The analysis for Plaintiff’s meal break violation claim is similar. Plaintiff asserts a cause of

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action for Defendants’ failure to provide meal periods pursuant to California Labor Code Section

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512 and Section 226.7. Complaint ¶ 17. Section 512(a) provides that employers must provide

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employees with 30-minute meal periods when employees work more than five hours a day, and a

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second meal period when employees work more than ten hours each day. See Cal. Lab. Code §

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512(a).

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However, Section 512(e) states that the meal break provisions of Section 512(a) do not apply

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to certain classes of employees (including Plaintiff) if the employee is covered by a valid collective

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bargaining agreement that—among other requirements not relevant here—expressly provides for a

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regular hourly rate of pay of not less than 30 percent more than the state minimum wage rate. See

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1 Cal. Lab. Code § 512(e); Cal. Lab. Code § 512(f). But as described supra, the 2018–2023 CBA

2 simply does not meet the 30% premium pay requirement. As a result, the Court finds that the right

3 to meal breaks arises (at least in part) under state law and not under the terms of the CBA.8 Again,

4 Step One of the Burnside test cannot be met on this record.

5 As to Step Two, Defendants argue that interpretation of the CBA is required to determine

6 whether a valid written agreement to provide on-duty meal periods exists, and whether the

7 provisions provide valid on-duty meal period. Reply in Support of Motion to Dismiss at 10 [Dkt.

8 No. 21]. The argument is unpersuasive. The terms of the CBAs are unambiguous, not in dispute,

9 and require no interpretation. The Court only has to look to the CBA to address Plaintiff’s claim.

10 Indeed, courts presented with similar meal breaks provisions have likewise concluded that they are

11 unambiguous and rejected the same, oft-made argument that interpretation is somehow required.

12 See Atuatasi v. Securitas Sec. Servs. USA, Inc., No. LA18CV2786VAPPLAX, 2018 WL 2748259, at

13 *5 (C.D. Cal. June 6, 2018); see also Bradford v. Pro. Tech. Sec. Servs. Inc. (Protech), No. 20-CV-

14 02242-WHO, 2020 WL 2747767, at *8 (N.D. Cal. May 27, 2020) (same). The meal break claim is

15 not preempted under Section 301 of the LMRA.9

16 C. Claim Four: Rest Break Violations

17 Plaintiff’s fourth claim asserts that Defendants failed to provide rest breaks as required under

18 California law. Specifically, Plaintiff contends that Defendants failed to permit Plaintiff to take rest

19 periods of at least ten minutes per four hours worked. Complaint ¶ 18.

20 Defendants seeks dismissal of this claim based solely on Step Two of Burnside. Defendants

21 point out that the CBAs require breaks of “not less than 15 minutes” (as opposed to 10 minutes as

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8 The CBAs do provide that security officers are entitled to on-duty meals breaks. See Doshi Decl.,

Ex. A at Art. 10.5; Supp. Doshi Decl., Ex. A at Art. 10.5.

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9 Plaintiff does not dispute that the CBA meets the other requirements in Section 512(e). Even though

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Curtis did not discuss meal break claims, “its analysis regarding section 514 appears to map seamlessly

27 onto claims arising under sections 512 and 226.7.” Taylor v. NBC W., LLC, No. CV-19-7663-DMG-

PLAX, 2020 WL 8268197, at *2 (C.D. Cal. Jan. 2, 2020).

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1 required by California law.) Doshi Decl., Ex. A at Art. 10.6; Supp. Doshi Decl., Ex. A at Art. 10.6.

2 The CBAs also require that a “Meal and Rest Period Report” be completed and submitted if an

3 employee misses a rest period. Id. at Art. 10.7. Defendants argue that because they provisions differ

4 from California law, they will require interpretation. Motion to Dismiss at 11.

5 The Court disagrees. Reviewing the text, the Court concludes that there is no need to

6 interpret the CBAs to determine when the rest periods should have been taken, how long they should

7 have been (at least 15 minutes), and/or whether they were missed or waived. Judge Phillips reached

8 a similar result in Atuatasi, 2018 WL 2748259. In that case, the plaintiff security guards were

9 provided fifteen-minute breaks for each four hours worked. Id. at *5. Judge Phillips persuasively

10 found the rest break provisions of the CBA to be unambiguous and rejected the argument that the

11 agreement needed interpretation to determine “when to take a break, how long a break would be, and

12 how the break would be treated in terms of compensation.” Id. The same reasoning applies here.

13 D. Remaining Claims

14 Defendants argue that the remaining wage claims are derivative of the overtime, meal break,

15 and rest period claims, and will thus require similar interpretations of the CBAs. Motion to Dismiss

16 at 12. The Court agrees with the premise, but not the conclusion. These other remaining claims are

17 similar to the claims discussed above, and therefore fail the Burnside test for the same reasons.

18 None of them arises “solely” out of the CBA (to the contrary, they principally arise out of California

19 wage and hour laws), and none of them requires an in interpretation of the CBAs. Indeed,

20 Defendants do not identify any relevant legal disputes about any contested terms relating to these

21 other claims.

22 E. Motion to Remand

23 This action was removed solely on the basis of LMRA preemption. See Notice of Removal.

24 [Dkt. No. 1]. Because the Court has now concluded that Section 301 of the LMRA does not preempt

25 any of the claims pled in the Complaint, there is no subject matter jurisdiction and the entire action

26 must be remanded to state court.10 See Rodriguez v. S E Pipeline Constr. Co., No. 2:23-CV-08769-

27

28 10 For this same reason, the Court does not reach the issue of whether Plaintiff exhausted the grievance

1 | WLH (MRW), 2023 WL 9319043, at *5 (C.D. Cal. Dec. 1, 2023) (remanding remaining state law

2 | claims for lack of subject matter jurisdiction).

3] V. CONCLUSION

4 For the foregoing reasons, the Court denies Defendants’ Motion to Dismiss and grants

5 | Plaintiffs Motion to Remand.

: AOE

7 Dated: January 27, 2025

Hernan D. Vera

8 United States District Judge

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28 procedures as outlined in the CBA.

14

This is a copy of a public record, reproduced as it was published. It is not legal advice, and it may not be the version a court would rely on. Check the official source before you cite it.

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