For California Employees:

Overtime Claims May Proceed as Class Actions

On August 26, 2004, the California Supreme Court ruled that overtime claims may be litigated as class actions. The long-awaited decision in Sav-On Drug Stores, Inc. v. Superior Court, Case No. S106718, upheld a trial court’s order certifying the overtime claims of approximately 1,200 salaried retail managers who worked for Sav-On. The Sav-On managers allege that they are entitled to overtime because they routinely spend more than 50% of their time on non-managerial work. The California Supreme Court rejected Sav-On’s argument that it would be unfair to certify the class because each manager performed his or her job differently. Instead, the court recognized that certifying the class would promote California’s fundamental public policy of ensuring that employees receive all of the wages to which they are entitled.

The Sav-On decision is a resounding victory for the rights of California employees. If you would like a copy of the decision, please call Kirk Donnelly at (858) 623-4275.

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