Bermudez Vaquero v. Stoneledge Furniture

Plaintiffs, former sales associates for Stoneledge, filed a class action complaint alleging that Stoneledge's commission pay plan did not comply with California law. The court held that employees paid on commission are entitled to separate compensation for rest periods mandated by state law. The court also held that employers who keep track of hours worked, including rest periods, violate this requirement by paying employees a guaranteed minimum hourly rate as an advance on commissions earned in later pay periods. In this case, because Stoneledge did not separately compensate sales associates for rest periods as required by California law, the trial court erred in granting summary adjudication on plaintiffs' cause of action for violation of Labor Code section 226.7. Furthermore, the trial court's ruling that plaintiffs' other causes of action failed because the section 226.7 claim failed was also erroneous. Therefore, the court reversed the judgment and remanded. On remand, the trial court must consider the remainder of Stoneledge's motion. View "Bermudez Vaquero v. Stoneledge Furniture" on Justia Law