IAA Wage Theft Lawsuit Settles for $1.5 Million
Table of Contents
Case Background
In a significant labor dispute filed in the Superior Court of California, County of Los Angeles, former employee Hector Leon initiated a class action lawsuit against his previous employer, Insurance Auto Auctions, Inc. The lawsuit sought to represent a large group of current and former non-exempt employees who worked for the company in California. Mr. Leon and the proposed class members alleged that the company systematically failed to follow California’s stringent wage and hour laws, resulting in substantial financial losses for the workers. The case centered on a series of alleged policy violations that affected employees’ daily paychecks and overall working conditions.
Cause
The primary causes of action stemmed directly from alleged failures to comply with the California Labor Code and related Business and Professions Code sections. The Plaintiff argued the company instituted policies that effectively denied employees their full legal entitlements. Specifically, the causes involved non-payment of minimum and overtime wages, and the failure to relieve employees of all duty during mandatory meal and rest periods.
Injury
The alleged injuries were financial and centered on wage theft. Employees claimed they lost income due to uncompensated work hours and were owed penalty
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