Green Wall Tech Pays $1.5M to Settle Alameda PAGA Lawsuit

Case Background

Carlos Miramontes initiated a legal battle against Green Wall Tech, Inc. in the Superior Court of California for the County of Alameda. Miramontes worked as a non-exempt, hourly employee for the company until his employment ended in late 2022. Green Wall Tech, a California corporation, managed business operations throughout the state, including locations within Alameda County where Miramontes performed his duties. The lawsuit began as a representative action, meaning Miramontes sued not just for himself but on behalf of all other "aggrieved employees" who faced similar treatment at the company. The legal filing followed a strictly mandated process where the Plaintiff first notified the California Labor and Workforce Development Agency about the company's alleged labor violations. When the state agency did not intervene within the legal timeframe, Miramontes moved forward with his lawsuit to hold the employer accountable for widespread workplace misconduct.

Cause

The dispute started because Green Wall Tech allegedly maintained a system of illegal employment practices that cheated workers out of their rightful earnings. Miramontes claimed the company forced employees to follow policies that knowingly denied them basic rights and benefits guaranteed by the California Labor Code. Specifically, the company required staff to work "off-the-clock" without pay. These unpaid tasks included mandatory pre-shift activities, such as COVID-19 health screenings, temperature checks, and questionnaires. Employees had to complete these requirements before they were allowed to clock in for their paid shifts. Furthermore, the company failed to provide workers with the legally required breaks during the workday. Management often pressured employees to work through their meal and rest periods or interrupted them so frequently that the breaks became useless.

Injury

While the case did not involve physical injuries like a car crash, the staff suffered significant financial harm and "informational injury". By working off-the-clock and through breaks, the employees lost out on minimum wages, regular pay, and overtime compensation. Because the company failed to pay for every hour worked, the staff took home smaller paychecks than they legally earned. Additionally, the workers suffered because the company provided inaccurate, itemized wage statements. These pay stubs omitted the actual hours worked and the correct pay rates, making it impossible for employees to verify if they received the right amount of money. This lack of transparency hid the true extent of the underpayment, leaving the workforce in the dark about the money their employer withheld from them.

Damages Sought

Miramontes demanded substantial financial compensation and penalties to address the company's behavior. The lawsuit asked for more than $25,000 in damages, though the total value of the claims involving all affected employees was much higher. The Plaintiff sought the recovery of all unpaid minimum and overtime wages that had accrued over several years. He also demanded "premium" pay for every meal and rest period the company missed or interrupted. Beyond back pay, the lawsuit pursued heavy civil penalties under the Private Attorneys General Act (PAGA), which punishes employers for each pay period a violation occurs. Finally, Miramontes requested that the Court order Green Wall Tech to pay for his legal team's attorneys' fees and the various costs associated with bringing the lawsuit to Court.

Key Arguments and Proceedings

Legal Representation

Plaintiff(s): Carlos Miramontes, as an individual and on behalf of other aggrieved employees.

·       Counsel for Plaintiff(s): Larry W. Lee | Kristen M. Agnew | Nicholas Rosenthal

Defendant(s): Green Wall Tech, Inc.

·       Counsel for Defendant(s): Jerald M. Montoya | Steven D. Dadaian

Key Arguments or Remarks by Counsel

Claims

The legal team for Miramontes built the case around several distinct violations of the California Labor Code.

Unpaid Minimum and Overtime Wages The attorneys argued that the company intentionally allowed staff to work without pay. They highlighted that time spent on mandatory COVID-19 screenings and health checks counted as "hours worked" under California law because the employer controlled the employees' actions during that time. By not paying for this time, the company avoided its duty to pay minimum and overtime wages.

Meal and Rest Period Violations The Plaintiff alleged that the company failed in its affirmative duty to provide thirty-minute meal breaks and ten-minute rest periods. The legal team argued that even when employees were "given" breaks, they were not truly "duty-free" because management often interrupted them with work tasks.

Failure to Provide Accurate Wage Statements The lawsuit claimed the company's pay stubs were deceptive. Because they did not include the off-the-clock hours or the premium pay for missed breaks, the statements did not accurately show the gross or net wages the employees actually earned.

Defense

Green Wall Tech fought back by filing a formal answer that denied nearly every allegation in the complaint. The company's legal team presented a long list of defenses to avoid paying the requested damages. They argued that the lawsuit failed to state facts sufficient to constitute a cause of action and that some of the claims were barred by the statute of limitations. The defense also claimed that if any labor laws were broken, it happened because of the employees' own actions or third parties they could not control. Furthermore, they asserted that the company acted in good faith and that any errors in pay were unintentional or resulted from "discretionary acts" by employees, which they claimed provided the company with legal immunity.

Settlement

The parties ultimately chose to avoid the risks of a jury trial by negotiating a massive settlement agreement. Both sides agreed to resolve all claims, including the PAGA penalties and the unpaid wage disputes, for a total of $1,500,000. This seven-figure sum served to compensate Miramontes and the group of aggrieved employees for the years of lost wages, missed breaks, and the lack of transparency in their pay records. The settlement brought an end to the litigation in Alameda County, providing a financial recovery for the workers and closing the books on the allegations of systemic labor violations at Green Wall Tech.

Court documents are available upon request at jurimatic@exlitem.com