Isais Vasquez, et al vs. Leprino Foods Company, et al

Case Background

On May 17, 2017, Plaintiff  Isais Vasquez on behalf of all other similarly situated individuals filed a Class settlement lawsuit in the United States District Court Eastern District of California, Fresno Division(Case number: 1:17-cv-00796-). Magistrate Judge Barbara A. McAuliffe presided over this case.

Cause

Plaintiffs Isaias Vazquez and Linda Hefke, representing a class of similarly situated employees, worked as non-exempt, hourly workers at Leprino Foods Company’s Lemoore West facility in California. Leprino Foods, a Colorado corporation, implemented policies that systematically violated California labor laws. The company regularly required employees to report for their scheduled shifts but often sent them home without pay upon arrival, citing misjudgments in labor and production needs. This “de-crewing” policy denied employees their rightful compensation for reporting time, violating California’s labor law protections.

Employees who sought payment for reporting time were coerced into filling out Time Off Request (TOR) forms and forfeiting accrued vacation days in exchange for partial pay. These practices blatantly circumvented California’s Reporting Time Pay regulations, creating significant unpaid wages and contributing to labor law violations that exploited workers.

Injuries

Leprino Foods’ unlawful practices caused significant harm to its employees. Workers were deprived of wages for reporting as scheduled and were forced to remain on-call during meal and rest breaks without proper compensation. Supervisors frequently interrupted these breaks with work-related directives, violating employees’ rights to duty-free rest periods as mandated by California law.

These practices not only created unpaid wages but also led to financial strain for employees, compounded by improper deductions from their vacation balances. Additionally, the lack of transparency and disregard for labor standards caused emotional distress, leaving employees feeling exploited and powerless. The company’s repeated labor law violations eroded trust and respect in the workplace.

Damages

The plaintiffs suffered substantial financial losses as a direct result of Leprino Foods’ illegal policies. Employees were denied pay for scheduled hours, overtime wages for work performed beyond standard shifts, and premium pay for interrupted or missed breaks.

Leprino Foods also issued inaccurate pay stubs, failing to comply with California Labor Code Section 226 by omitting critical details about hours worked and wages earned. These actions resulted in unpaid wages, lost vacation time, and withheld overtime pay. The plaintiffs experienced significant monetary hardship and emotional stress, exacerbated by the company’s consistent labor law violations. Legal costs incurred in pursuing justice added further burdens on the plaintiffs, who sought to enforce their rights under California labor laws.

Key Arguments and Proceedings

Legal representation

  • Plaintiff(s): Isais Vasquez | Linda Hefke  on behalf of all other similarly situated individuals
    • Counsel for Plaintiff: Rex Parris | Alexander R. Wheeler | Kitty K. Szeto | Ryan A. Crist | Philip A. Downey
  • Defendant(s): Leprino Foods Company, a Colorado Corporation | Leprino Foods Dairy Products Company, a Colorado Corporation
    • Counsel for Defendants: Sandra L. Rappaport | Lisa M. Pooley | Morris Nazarian | James R. Hawkins | Isandra Fernandez | Kacey E. Cook

Claims

The plaintiffs filed a comprehensive class-action lawsuit alleging multiple labor law violations by Leprino Foods. They claimed the company failed to pay minimum wages, compensate for all hours worked, and provide overtime pay as required by California law. Key allegations included reporting time pay violations, where the company denied employees compensation after sending them home prematurely. The lawsuit also highlighted the company’s policy of requiring employees to remain on-call during meal and rest breaks, violating their statutory rights to duty-free breaks. These practices breached California labor law and constituted unfair competition under California Business and Professions Code Section 17200.

The plaintiffs sought damages for all unpaid wages, waiting time penalties, and restitution for vacation days unlawfully deducted. They also demanded punitive damages for Leprino Foods’ fraudulent and oppressive conduct, along with injunctive relief to prevent future labor law violations. Through this lawsuit, the plaintiffs aimed to hold Leprino Foods accountable and secure fair treatment for all affected employees.

Defense

Leprino Foods Company defended its policies and practices, asserting compliance with California labor laws. The company argued that its “de-crewing” policy addressed unexpected production fluctuations and operational challenges.

The company maintained that employees sent home early were not entitled to reporting time pay, as they had not performed sufficient work to trigger compensation requirements under California law.

It claimed that the Time Off Request (TOR) forms provided employees with a voluntary option to use accrued vacation time for compensation and disputed allegations of coercion. The company also denied violating overtime regulations, asserting that it paid employees fairly for hours worked and complied with applicable wage orders.

Regarding on-call meal and rest periods, it argued that employees were compensated for any work-related duties performed during breaks. The company maintained that its flexible break policies balanced operational efficiency with employee needs.

It further challenged the accuracy of the plaintiffs’ claims, asserting that its pay stubs met statutory requirements and provided clear, accurate documentation of hours worked and wages earned. The company denied allegations of unfair competition, arguing that its practices aligned with industry standards. It sought to dismiss the lawsuit by emphasizing its adherence to lawful employment practices and disputing claims of intentional misconduct.

Settlement

On June 17, 2024, the Court granted final approval of a $3,500,000 non-reversionary class-action settlement, resolving claims of labor law violations, unpaid wages, and overtime pay claims against Leprino Foods Company. This settlement ensured fair compensation for class members and concluded the litigation.

Class Counsel was awarded $1,400,000 in attorneys’ fees for 9,969.29 hours of work across six related cases. The Court also approved $800,000 in litigation cost reimbursement, $65,762.88 less than the total costs incurred. No class members objected to these allocations.

The named plaintiff received a $45,000 enhancement payment for their contributions to the case, which was finalized without objections. The magistrate judge highlighted that the average payment of $344.50 to class members provided meaningful compensation for the unpaid wages and overtime pay affected by Leprino Foods’ policies.

Court Documents:

Documents Available for Purchase upon Request