Labor & Employment Law Blog

Even seemingly minor wage and hour violations present a very real threat of crippling or potentially ruinous liability for California’s employers when assessed in class and Private Attorneys General Act (“PAGA”) representative action lawsuits. To make matters worse, plaintiffs are increasingly targeting individual owners and agents in addition to their corporate employer, which begs the question: When can individuals be held personally liable in wage and hour lawsuits? 

In Magadia v. Wal-mart Associates, Inc., et al., No. 19-16184, 2021 WL 2176584 (9^th Cir. May 28, 2021), the Ninth Circuit Court of Appeal reversed the district court’s award of $102 million to an employee who sued the company alleging that he and other employees did not receive compliant wage statements or meal periods.  Unlike the district court, the Ninth Circuit found that the former employee who sued Walmart had suffered no meal period violations, and thus the employee had no standing to sue on behalf of others.  The Ninth Circuit also held that the district court incorrectly concluded Walmart’s wage statements did not comply with California law.