Mendiola v. CPS Sec. Solutions
Annotate this CaseSecurity guards employed by CPS Security Solutions, Inc. filed two class action lawsuits - which were later consolidated - alleging that CPS’s on-call compensation policy violated minimum wage and overtime obligations imposed by the applicable Industrial Welfare Commission (IWC) wage order and Labor Code statutes. Specifically, Plaintiffs challenged CPS’s policy of failing to compensate the guards for on-call time unless they were required to conduct an investigation. The trial court granted Plaintiffs’ motion for summary adjudication of the declaratory relief complaints, concluding that CPS’s compensation policy violated Wage Order 4. The Court of Appeal affirmed in part and reversed in part. The Supreme Court affirmed in part and reversed in part, holding (1) Plaintiffs’ on-call hours constituted compensable hours worked within the meaning of Wage Order 4 and were subject to the wage order’s minimum wage and overtime provisions; and (2) CPS could not exclude “sleep time” from Plaintiff’s twenty-four-hour shifts.
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