SAN FRANCISCO — Former mechanics employed by Pep Boys-Manny Moe & Jack in California were recently granted class certification in their overtime claim by a California federal court. The former mechanics claim the company violated state labor law with its wage policy. The claim alleges the wage policy failed to meet minimum wage and overtime requirements and required the mechanics to provide their own tools. The court allowed the certified class’ wage and hours claim to go forward, but dismissed the tool claim. The company denies each of the claims.
Certifying Class
The certified class includes former mechanics, express service technicians, and commercial sales managers who worked at any California Pep Boys’ location from August 2008 to September 2011 and were terminated before the end of September 2011. In determining whether to certify the class and which, if either, claim would go forward, the judge looked to see if there was a company policy applied uniformly throughout the California locations and to all of the potential class members.
The judge did not find a uniform policy regarding a requirement for mechanics to provide their own tools. The company did have a policy allowing employees to bring their own tools, but it was not required. According to the decision, Pep Boys supplies each location with a set 76 hand tools for mechanics to use. It grants managers the discretion to allow mechanics to borrow tools from the retail section of the store.
However, the judge did find enough evidence to support a wage claim and class certification. According to Pep Boys’ compensation plan, the affected employees were paid based on a three-month rolling average of productivity. This plan was used uniformly for sales manager, mechanics, and express service technicians across California.
Compensation Plans
Employers can utilize whatever compensation plan they choose, so long as the plan meets labor and wage law requirements. In this case, the plan paid mechanics and service technicians a flat rate for predetermined “labor hours.” These predetermined hours were set by the company. The “labor hours” did not include training, cleanup, or other non-repair tasks. This means the rolling average calculations did not credit the mechanics for the non-“labor hours” work. Additionally, these predetermined hours prevented employees from taking additional work, created downtime where they were waiting for customers, and affected overtime pay calculations. On top of the allegedly faulty compensation plan, the mechanics claim they were paid a base rate less than the state’s $8 minimum wage.
If you believe your employer has failed to pay minimum wage or proper overtime, call our knowledgeable team of overtime pay lawyers today at (855) 754-2795. Or complete the Free Unpaid Overtime Case Review form and our experienced legal team will evaluate your case. If we accept your case, we will represent you under our No Fee Promise. This means there are no legal fees or costs unless you receive a settlement.