This case was last updated from Santa Clara County Superior Courts on 08/07/2019 at 20:53:49 (UTC).

Alvarez v. Transitamerica Services, Inc., et al.

Case Summary

On 04/16/2018 Alvarez filed a Labor - Other Labor lawsuit against Transitamerica Services, Inc . This case was filed in Santa Clara County Superior Courts, Downtown Superior Court located in Santa Clara, California. The Judge overseeing this case is Kuhnle, Thomas. The case status is Other - Transferred.

Case Details Parties Documents Dockets

 

Case Details

  • Case Number:

    ******6629

  • Filing Date:

    04/16/2018

  • Case Status:

    Other - Transferred

  • Case Type:

    Labor - Other Labor

  • Court:

    Santa Clara County Superior Courts

  • Courthouse:

    Downtown Superior Court

  • County, State:

    Santa Clara, California

Judge Details

Judge

Kuhnle, Thomas

 

Party Details

Plaintiff

Alvarez, Albert C.

Defendants

TRANSITAMERICA SERVICES, INC.

Herzog Transit Services, Inc

Attorney/Law Firm Details

Plaintiff Attorneys

Setareh, Shaun

Leviant, Howard Scott

Pao, William Matthew

Defendant Attorneys

Ranen, Jeffrey Scott

Sapien, Brendan T

 

Court Documents

Notice

Notice of Removal: Comment: Notice of Removal

Civil Case Cover Sheet

Civil Case Cover Sheet: Comment: Civil Case Coversheet

Summons: Issued/Filed

Summons: Comment: Summons

Complaint (Unlimited) (Fee Applies)

Complaint (Unlimited) (Fee Applies): Comment: Complaint

 

Docket Entries

  • 08/03/2018
  • Conference: Case Management - Judicial Officer: Kuhnle, Thomas; Hearing Time: 10:00 AM; Cancel Reason: Vacated

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  • 05/24/2018
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  • Removal to Federal Court - Notice of Removal:

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  • 04/27/2018
  • Proof of Service: Summons DLR (Civil) - Comment: Herzog Transit

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  • 04/27/2018
  • Proof of Service: Summons DLR (Civil) - Comment: TransAmerica Service

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  • 04/16/2018
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  • Civil Case Cover Sheet - Civil Case Cover Sheet: Comment: Civil Case Coversheet

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  • 04/16/2018
  • View Court Documents
  • Summons: Issued/Filed - Summons: Comment: Summons

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  • 04/16/2018
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  • Complaint (Unlimited) (Fee Applies) - Complaint (Unlimited) (Fee Applies): Comment: Complaint

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Complaint Information

Shaun Setareh (SBN 204514) shaun@setarehlaw.com H. Scott Leviant (SBN 200834) scott@setarehlaw.com William M. Pao (SBN 219846) william@setarehlaw.com

SETAREH LAW GROUP

9454 Wilshire Boulevard, Suite 907 Beverly Hills, California 90212 Telephone (310) 888-7771 Facsimile (310) 888-0109

Attorneys for Plaintiff ALBERT C. ALVAREZ

E-FILED

4/16/2018 2:33 PM Clerk of Court Superior Court of CA, County of Santa Clara

18CV 326629

Reviewed By: E. Fang

SUPERIOR COURT OF THE STATE OF CALIFORNIA FOR THE COUNTY OF SANTA CLARA UNLIMITED JURISDICTION

ALBERT C. ALVAREZ, on behalf of himself, all others similarly situated,

Plaintiff, VS.

TRANSITAMERICA SERVICES, INC., a

| Missouri corporation; HERZOG TRANSIT SERVICES, INC., a Missouri corporation; and DOES 1 through 50, inclusive,

Defendants.

2 Case Ko, 18CV326629

CLASS ACTION COMPLAINT

1. Violation of 15 U.S.C. §§ 1681b(b)(2)(A) (Fair Credit Reporting Act);

2. Violation of 15 U.S.C. §§ 1681d(a)(1) and 1681g(c) (Fair Credit Reporting Act);

3. Violation of California Civil Code § 1786 et seq. (Investigative Consumer Reporting Agencies Act);

4. Violation of California Civil Code § 1785 et seq. (Consumer Credit Reporting Agencies Act);

5. Failure to Provide Meal Periods (Lab. Code §§ 204, 223, 226.7, 512 and 1198);

6. Failure to Provide Rest Periods (Lab. Code §§ 204, 223, 226.7 and 1198);

7. Failure to Pay Hourly Wages (Lab. Code §§ 223,510, 1194, 1194.2, 1197, 1997.1 and 1198);

8. Failure to Provide Accurate Written Wage Statements (Lab. Code §§ 226(a));

9. Failure to Timely Pay All Final Wages (Lab. Code §§ 201, 202 and 203); COMES NOW, Plaintiff ALBERT C. ALVAREZ (“Plaintiff), on behalf of himself, all

others similarly situated, complains and alleges as follows:

INTRODUCTION

L Plaintiff brings this class action against Defendant TRANSITAMERICA SERVICES, INC., a Missouri corporation, HERZOG TRANSIT SERVICES, INC., a Missouri corporation; and DOES 1 through 50, inclusive (collectively referred to as “Defendants™) for alleged violations of the Fair Credit Reporting Act (“FCRA™) and similar California laws.

2 Plaintiff alleges that Defendants routinely acquire consumer, investigative consumer and/or consumer credit reports (referred to collectively as “credit and background reports™) to conduct background checks on Plaintiff and other prospective, current and former employees and use information from credit and background reports in connection with their hiring process without providing proper disclosures and obtaining proper authorization in compliance with the law.

3. Plaintiff, individually and on behalf of all others similarly situated current, former and prospective employees, seeks compensatory and punitive damages due to Defendants’ systematic and willful violations of the FCRA (15 U.S.C. §§ 1681 ef seq.), the California Investigative Consumer Reporting Agencies Act (“ICRAA™) (Cal. Civ. Code § 1786 et seq.); and the California Consumer Credit Reporting Agencies Act (“CCRAA™) (Cal. Civ. Code § 1785, et seq.).

4 Plaintiff also brings this class action against Defendants for alleged violations of the Labor Code and Business and Professions Code. As set forth below, Plaintiff alleges that Defendants have:

(1) failed to provide him and all other similarly situated individuals with meal periods;

(2) failed to provide them with rest periods;

(3) failed to pay them premium wages for missed meal and/or rest periods; failed to pay them premium wages for missed meal and/or rest periods at the regular rate of pay;

(4) failed to pay them at least minimum wage for all hours worked; (5) failed to pay them overtime wages at the correct rate; (6) failed to pay them double time wages at the correct rate; (7) failed to provide them with accurate written wage statements; and (8) failed to pay them all of their final wages following separation of employment. Based on these alleged Labor Code violations, Plaintiff now brings this class action to

recover unpaid wages, restitution and related relief on behalf of himself, all others similarly

situated.

JURISDICTON AND VENUE

3 This Court has subject matter jurisdiction to hear this case because the monetary

damages and restitution sought by Plaintiff from Defendants conduct exceeds the minimal jurisdiction of the Superior Court of the State of California.

6. Venue is proper in the County of Santa Clara pursuant to Code of Civil Procedure sections 395(a) and 395.5 in that liability arose this county because at least some of the transactions that are the subject matter of this Complaint occurred therein and/or each defendant is found, maintains offices, transacts business and/or has an agent therein.

7 Venue is proper in Santa Clara County because Defendants’ principal place of business is in Missouri, is incorporated under the laws of Missouri, conducts business in this county, and has not registered a California place of business with the California Secretary of State. As such, venue is proper in any county in California.

PARTIES

8. Plaintiff ALBERT C. ALVAREZ is, and at all relevant times mentioned herein, an individual residing in the State of California.

9. Plaintiff is informed and believes, and thereupon alleges that Defendant TRANSITAMERICA SERVICES, INC. is, and at all relevant times mentioned herein, a Missouri corporation doing business in the State of California.

10. Plaintiff is informed and believes, and thereupon alleges that Defendant HERZOG

TRANSIT SERVICES, INC. is, and at all relevant times mentioned herein, a Missouri corporation doing business in the State of California.

11. Plaintiff is ignorant of the true names and capacities of the defendants sued herein as DOES 1 through 50, inclusive, and therefore sues these defendants by such fictitious names. Plaintiff will amend this Complaint to allege the true names and capacities of the DOE defendants when ascertained. Plaintiff is informed and believes, and thereupon alleges that each of the fictitiously named defendants are responsible in some manner for the occurrences, acts and omissions alleged herein and that Plaintiff’s alleged damages were proximately caused by these defendants, and each of them. Plaintiff will amend this complaint to allege both the true names and capacities of the DOE defendants when ascertained.

L Plaintiff is informed and believes, and thereupon alleges that, at all relevant times mentioned herein, some or all of the defendants were the representatives, agents, employees, partners, directors, associates, joint venturers, principals or co-participants of some or all of the other defendants, and in doing the things alleged herein, were acting within the course and scope of such relationship and with the full knowledge, consent and ratification by such other defendants.

13. Plaintiff is informed and believes, and thereupon alleges that, at all relevant times mentioned herein, some of the defendants pursued a common course of conduct, acted in concert and conspired with one another, and aided and abetted one another to accomplish the occurrences, acts and omissions alleged herein.

CLASS ALLEGATIONS

14. This action has been brought and may be maintained as a class action pursuant to Code of Civil Procedure section 382 because there is a well-defined community of interest among the persons who comprise the readily ascertainable classes defined below and because Plaintiff is unaware of any difficulties likely to be encountered in managing this case as a class action.

15. Relevant Time Period: The relevant time period is defined as the time period beginning four years prior to the filing of this action until judgment is entered.

FCRA Class: All of Defendants” current, former and prospective applicants for

employment in the United States who applied for a job with Defendants at any time during

the period for which a background check was performed beginning five years prior to the filing of this action and ending on the date that final judgment is entered in this action. ICRAA Class: All of Defendants’ current, former and prospective applicants for employment in California, at any time during the period beginning five years prior to the filing of this action and ending on the date that final judgment is entered into this action. CCRAA Class: All of Defendants’ current, former and prospective applicants for employment in California, at any time during the period beginning seven years prior to the filing of this action and ending on the date that final judgment is entered in this action. Hourly Employee Class: All persons employed by Defendants and/or any staffing agencies and/or any other third parties in hourly or non-exempt positions in California during the Relevant Time Period.

Meal Period Sub-Class: All Hourly Employee Class members who worked a shift in excess of five hours during the Relevant Time Period.

Rest Period Sub-Class: All Hourly Employee Class members who worked a shift of at least three and one-half (3.5) hours during the Relevant Time Period.

Wage Statement Penalties Sub-Class: All Hourly Employee Class members employed by Defendants in California during the period beginning one year before

the filing of this action and ending when final judgment is entered.

Waiting Time Penalties Sub-Class: All Hourly Employee Class members who separated from their employment with Defendants during the period beginning three years before the filing of this action and ending when final judgment is entered.

UCL Class: All Hourly Employee Class, FCRA Class, ICRAA Class and CCRAA Class members employed by Defendants in California during the Relevant Time Period.

16. Reservation of Rights: Pursuant to Rule of Court 3.765(b), Plaintiff reserves the right to amend or modify the class definitions with greater specificity, by further division into sub- | classes and/or by limitation to particular issues.

17. Numerosity: The class members are so numerous that the individual joinder of each individual class member is impractical. While Plaintiff does not currently know the exact number of class members, Plaintiff is informed and believes, and thereupon alleges that the actual number exceeds the minimum required for numerosity under California law.

18. Commonality and Predominance: Common questions of law and fact exist as to all class members and predominate over any questions which affect only individual class members. These common questions include, but are not limited to:

A. Whether Defendants failed to comply with the requirements of 15 U.S.C. § 7001 section 101(c)(1);

B. Whether Defendants willfully failed to provide the class with stand-alone written disclosures before obtaining a credit or background report in compliance with the statutory mandates;

Whether Defendants willfully failed to identify the name, address, telephone number, and/or website of the investigative consumer reporting agency conducting the investigation;

Whether Defendants willfully failed to identify the source of the credit report to be performed;

Whether Defendants willfully failed to comply with the FCRA, ICRAA and/or the CCRAA;

Whether Defendants maintained a policy or practice of failing to provide employees with their meal periods;

Whether Defendants maintained a policy or practice of failing to provide employees with their rest periods;

Whether Defendants failed to pay premium wages to class members when they have not been provided with required meal and/or rest periods; Whether Defendants failed to pay minimum and/or overtime wages to class members as a result of policies that fail to provide meal periods in accordance with California law;

Whether Defendants failed to pay minimum and/or overtime wages to class members for all time worked;

Whether Defendants failed to provide class members with accurate written wage statements as a result of providing them with written wage statements with inaccurate entries for, among other things, amounts of gross and net wages, and total hours worked;

Whether Defendants applied policies or practices that result in late and/or incomplete final wage payments;

Whether Defendants are liable to class members for waiting time penalties

under Labor Code section 203; N. Whether class members are entitled to restitution of money or property that Defendants may have acquired from them through unfair competition.

19. Typicality: Plaintiff’s claims are typical of the other class members’ claims. Plaintiff is informed and believes and thereupon alleges that Defendants have a policy or practice of failing to comply with the Labor Code and Business and Professions Code as alleged in this Complaint.

20. Adequacy of Class Representative: Plaintiff is an adequate class representative in that he has no interests that are adverse to, or otherwise conflict with, the interests of absent class members and is dedicated to vigorously prosecuting this action on their behalf. Plaintiff will fairly and adequately represent and protect the interests of the other class members.

21. Adequacy of Class Counsel: Plaintiff’s counsel are adequate class counsel in that they have no known conflicts of interest with Plaintiff or absent class members, are experienced in wage and hour class action litigation, and are dedicated to vigorously prosecuting this action on behalf of Plaintiff and absent class members.

22, Superiority: A class action is vastly superior to other available means for fair and efficient adjudication of the class members’ claims and would be beneficial to the parties and the Court. Class action treatment will allow a number of similarly situated persons to simultaneously and efficiently prosecute their common claims in a single forum without the unnecessary duplication of effort and expense that numerous individual actions would entail. In addition, the monetary amounts due to many individual class members are likely to be relatively small and would | thus make I difficult, if not impossible, for individual class members to both seek and obtain relief. Moreover, a class action will serve an important public interest by permitting class members to effectively pursue the recovery of monies owed to them. Further, a class action will prevent the potential for inconsistent or contradictory judgments inherent in individual litigation.

GENERAL ALLEGATIONS

23, Plaintiff worked for Defendants as a non-exempt, hourly employee from approximately April 13, 2015 and was terminated on or about May 28, 2017.

24. When Plaintiff applied for employment, Defendants performed a background investigation on Plaintiff. 2. Defendants did not provide legally compliant disclosure and authorization forms to Plaintiff and the putative class as they contained extraneous and superfluous language such as:

I hereby authorize a designated physician or a laboratory testing facility to conduct a drug/alcohol screening test as a requirement of employment.

For employment, I agree to undergo a pre-placement examination once a job offer has been tendered. I understand that a screening test to determine the presence of certain drugs and alcohol will be included in the physical examination, or prior to that examination. I further understand that the presence of one o[r] more of those drugs will cause my rejection for employment. If hired on probation, employee will be terminated. Applicant will not be able to reapply for employment for a period of 90 days. Upon reapplying, applicant must agree to participate in an approved Employee Assistance Program.

[ also understand that refusal to submit to the drug screening test will constitute voluntary withdrawal of my application for employment.

The above information is true and correct. 1 understand that, in the event of my employment by the Company, I shall be subject to dismissal if any information that I have given in this application is false or misleading or if | have failed to give any information herein requested, regardless of time elapsed after discovery.

[ hereby give my consent to any former employer to provide employment-related information about me to the Company and will hold the Company and my former employer harmless from any claim made on the basis that such information about me was provided or that any employment decision was made on the basis of such information.

['understand that nothing in this employment application, the granting of an interview or my

subsequent employment with the Company is intended to create any employment contract

between myself and the Company under which my employment could be terminate3d only

for cause. On the contrary [ understand and agree that, if hired my employment will be

terminable at will and may be terminated by me or the Company at any time and for any

reason. I understand that absent a written contract by the President of the Company, I will

remain an at-will employee and can be terminated at any time without notice.

If employed, I will be required to provide original documents which verify my identity and

right to work in the United States under the Immigration Reform and Control Act (IRCA) of

1986. The document(s) provided will be used for completion of Form 1-9.

[ hereby acknowledge that I have read and agree to the above statements.

Missed Meal Periods

26. Plaintiff and the putative class members were not provided with meal periods that complied with California law as they were required to work double shifts and/or to fill in for other employees. In other words, when Plaintiff and the putative class were dispatched to work another

shift, there was no time for them to take their meal periods and they would have to continue

working. 27. Plaintiff and the putative class members were not provided with meal periods of at least thirty (30) minutes for each five (5) hour work period due to (1) Defendants’ policy of not scheduling each meal period as part of each work shift; (2) chronically understaffing each work shift with not enough workers; (3) imposing so much work on each employee such that it made it unlikely that an employee would be able to take their breaks if they wanted to finish their work on time; and (4) no formal written meal and rest period policy that encouraged employees to take their meal and rest periods.

28. Asaresult of Defendants’ policy, Plaintiff and the putative class were regularly not provided with uninterrupted meal periods of at least thirty (30) minutes for each five (5) hours worked due to complying with Defendants’ productivity requirements that required Plaintiff and the putative class to work through their meal periods in order to complete their assignments on time.

Missed Rest Periods

29. Similarly, Plaintiff and the putative class members were not provided with rest periods that complied with California law as they were required to work double shifts and/or to fill in for other employees. In other words, when Plaintiff and the putative class were dispatched to work another shift, there was no time for them to take their rest periods and they would have to continue working.

30. Plaintiff and the putative class members were not provided with rest periods of at least ten (10) minutes for each four (4) hour work period, or major fraction thereof, due to (1) Defendants’ policy of not scheduling each rest period as part of each work shift; (2) chronically understaffing each work shift with not enough workers; (3) imposing so much work on each employee such that it made it unlikely that an employee would be able to take their breaks if they wanted to finish their work on time; and (4) no formal written meal and rest period policy that encouraged employees to take their meal and rest periods.

31. Asaresult of Defendants’ policy, Plaintiff and the putative class were regularly not provided with uninterrupted rest periods of at least ten (10) minutes for each four (4) hours worked

due to complying with Defendants” productivity requirements that required Plaintiff and the putative class to work through their rest periods in order to complete their assignments on time. Wage Statements 32. Plaintiff and the putative class were not provided with accurate wage statements as mandated by law pursuant to Labor Code section 226. 33. Detendants failed to comply with Labor Code section 226(a)(1) as “gross wages earned” were not accurately reflected in that: e all hours worked, including overtime were not included; e any and all meal and rest period premium wages were not included. 34. Defendants failed to comply with Labor Code section 226(a)(2) as “total hours worked by the employee™ were not accurately reflected in that: e all hours worked, including overtime, were not included; 33, Defendants failed to comply with Labor Code section 226(a)(5) as “net wages earned” were not accurately reflected in that: e all hours worked, including overtime, were not included; e any and all meal and rest period premium wages were not included.

FIRST CAUSE OF ACTION FAILURE TO PROVIDE PROPER DISCLOSURE IN VIOLATION OF THE FCRA

(15 U.S.C. §§ 1681b(b)(2)(A)) (Plaintiff and FCRA Class Against All Defendants) 36. Plaintiff incorporates the preceding paragraphs of this Complaint as if fully alleged herein. 3. Defendants are “persons™ as defined by Section 1681a(b) of the FCRA. 38. Plaintiff and class members are “consumers™ within the meaning of Section 1681a(c) of the FCRA because they are “individuals.” 39. Section 1681a(d)(1) of the FCRA defines “consumer report™ as: “The term “consumer report” means any written, oral, or other communication of any information by a consumer reporting agency bearing on a consumer’s credit worthiness, credit standing, credit capacity, character, general reputation, personal

characteristics, or mode of living which is used or expected to be used or collected in whole or in part for the purpose of serving as a factor in establishing the consumer’s eligibility for—

(A) credit or insurance to be used primarily for personal, family, or household purposes;

(B) employment purposes; or

(C) any other purpose authorized under section 1681b of this title.”

Accordingly, a credit and background report qualifies as a consumer report.

40.

Section 1681a(e) of the FCRA defines “investigative consumer report™ as:

“The term ‘investigative consumer report’ means a consumer report or portion thereof in which information on a consumer’s character, general reputation, personal characteristics, or mode of living is obtained through personal interviews with neighbors, friends, or associates of the consumer reported on or with others with whom he is acquainted or who may have knowledge concerning any such items off information. However, such information shall not include specific factual information on a consumer’s credit record obtained directly from a creditor of the consumer or from a consumer reporting agency when such information was obtained directly from a creditor of the consumer or from the consumer.”

Accordingly, a credit and background report qualifies as an investigative consumer report.

41.

42. in writing,.

43.

44,

Section 1681b(b)(2)(A) of the FCRA provides:

Conditions for furnishing and using consumer reports for employment purposes Except as provided in subparagraph (B), a person may not procure a consumer report, or cause a consumer report to be procured, for employment purposes with respect to any consumer, unless—

(1) A clear and conspicuous disclosure has been made in writing to the consumer at any time before the report is procured or caused to be procured, in a document that consists solely of the disclosure, that a consumer report may be obtained for employment purposes; and

(11) The consumer has authorized in writing (which authorization may be made on the document referred to in clause (1)) the procurement of the report by that person.

(Emphasis added.)

Section 1681b(b)(2)(A)(i) requires that a clear and conspicuous disclosure be made

Because Defendants’ disclosures do not meet the requirement of 15 U.S.C. section

7001(c), the disclosures do not satisfy the written requirement.

Plaintiff alleges, upon information and belief, that in evaluating him and other class

members for employment, Defendants procured or caused to be procured credit and background

reports (i.e. a consumer report and/or investigative consumer report as defined by 15 U.S.C. section 1681a(d)(1)(B) and 15 U.S.C. section 1681a(e)).

45. The purported disclosures do not meet the requirements under the law because they are embedded with extraneous information, and are not clear and unambiguous disclosures in stand- alone documents.

46. Under the FCRA, it is unlawful to procure or caused to be procured, a consumer report or investigative consumer report for employment purposes unless the disclosure is made in a document that consists solely of the disclosure and the consumer has authorized, in writing, the procurement of the report. (15 U.S.C. § 1681b(b)(@0(A0(i)-(ii).) The inclusion of a release and other extraneous information therefore violates section 1681b(b)(2)(A) of the FCRA.

47. Although the disclosure and authorization may be combined in a single document, the Federal Trade Commission (“FTC”) has warned that the form should not include any extraneous information or be part of another document. For example, in response to an inquiry as to whether the disclosure may be set forth within an application for employment or whether it must be included in a separate document, the FTC stated:

“The disclosure may not be part of an employment application because the language [of 15 U.S.C. section 1681b(b)(2)(A) is] intended to ensure that it appears conspicuously in a document not encumbered by any other information. The reason for requiring that the disclosure be in a stand-alone document is to prevent consumers from being distracted by other information side-by-side within the disclosure.™

48. The plain language of the statute also clearly indicates that the inclusion of a liability

release in a disclosure form violates the disclosure and authorization requirements of the FCRA, because such a form would not consist “solely” of the disclosure. In fact, the FTC expressly warned that the FCRA notice may not include extraneous information such as a release. In a 1998 opinion letter, the FTC stated: “[W]e note that your draft disclosure includes a waiver by the consumer of his or him rights under the FCRA. The inclusion of such a waiver in a disclosure form will violate section 604(b)(2)(A) of the FCRA, which requires that a disclosure consist ‘solely” of the disclosure that a consumer report may be obtained for employment purposes.”

49. Inareport dated July 2011, the FTC reiterated that “the notice [under 15 U.S.C. for a consumer’s waiver of his or him rights under the FCRA.”

50. By including a release and other extraneous information, Defendants willfully disregarded the FTC’s regulatory guidance and violated section 1681b(b)(2)(A) of the FCRA. Additionally, the inclusion of the extraneous provisions causes the disclosure to fail to be “clear and conspicuous” and “clear and accurate” and therefore violates sections 1681b(b)(2)(A0 and 1681d(a).

5l Defendants’ conduct in violation of section 1681b(b)(2)(A) of the FCRA was and is willful. Defendants acts in deliberate or reckless disregard of their obligations and the rights of applicants and employees, including Plaintiff and class members. Defendants’ willful conduct is reflected by, among other things, the following facts:

A. Defendants are a large corporation with access to legal advice;

B. Defendants required a purported authorization to perform credit and background checks in the process of employing the class members which, although defective, evidences Defendants’ awareness of and willful failure to follow the governing laws concerning such authorizations;

C. The plain language of the statute unambiguously indicates that inclusion of a liability release and other extraneous information in a disclosure form violates the disclosure and authorization requirements; and

L) The FTC’s express statements, pre-dating Defendants’ conduct, which state that it 1s a violation of section 1681b(b)(2)(A) of the FCRA to include a liability waiver in the disclosure form.

52, Defendants required a liability release in the disclosure form, along with other extraneous information, that releases all parties involved from any liability and responsibility for releasing information they have about the Plaintiff to Defendants.

53 Based upon the facts likely to have evidentiary support after a reasonable opportunity to further investigation and discovery, Plaintiff alleges that Defendants have a policy and practice of procuring investigative consumer reports or causing investigative consumer reports

to be procured for applicants and employees without informing them of their right to request a summary of their rights under the FCRA at the same time as the disclosure explaining that an investigative consumer report may be made. Pursuant to that policy and practice, Defendants procured investigative consumer reports or caused investigative consumer reports to be procured for Plaintiff and class members, as described above, without informing class members of their rights to request a written summary of their rights under the FCRA.

54. Accordingly, Defendants willfully violated and continue to violate the FCRA, including but not limited to, sections 1681b(b)(2)(A) and 1681d(a). Defendants’ willful conduct is reflected by, among other things, the facts set forth above.

55. Asaresult of Defendants’ unlawful procurement of credit and background reports by way of their inadequate disclosures, as set forth above, Plaintiff and class members have been injured, including but not limited to, having their privacy and statutory rights invaded in violation of the FCRA.

56. Plaintiff, on behalf of himself and all class members, seek all available remedies pursuant to 15 U.S.C. section 1681n, including statutory damages and/or actual damages, punitive damages, injunctive and equitable relief and attorneys’ fees and costs.

57. In the alternative to Plaintiff’s allegation that these violations were willful, Plaintiff alleges that the violations were negligent and seeks the appropriate remedy, if any, under 15 U.S.C. section 16810, including statutory damages and attorneys’ fees and costs.

SECOND CAUSE OF ACTION FAILURE TO GIVE PROPER SUMMARY OF RIGHTS IN VIOLATION OF THE FCRA

(15 U.S.C. § 1681d(a)(1) and 1681g(c)) (Plaintiff and FCRA Class Against All Defendants)

58. Plaintiff incorporates the preceding paragraphs of this Complaint as if fully alleged herein.

59. Section 1681d(a) states:

(a) Disclosure of fact of preparation A person may not procure or cause to be prepared an investigative consumer report on any consumer unless— 60.

61.

consumer report including information as to his character, general reputation, personal characteristics, and mode of living, which are applicable, may be made, and such disclosure

(A)1s made in a writing mailed, or otherwise delivered, to the consumer, not later than three days after the date on which the report was first requested, and

(B) includes a statement informing the consumer of his right to request the additional disclosures provided for under subsection (b) of this section and the written summary of the rights of the consumer prepared pursuant to section 1681g(c) of this title; and

(Emphasis added.) Section 1681d(b) states:

(b) Disclosure on request of nature and scope of investigation

Any person who procures or causes to be prepared an investigative consumer report on any consumer shall, upon written request made by the consumer within a reasonable period of time after the receipt by him of the disclosure required by subsection (a)(1), make a complete and accurate disclosure of the nature and scope of the investigation requested. This disclosure shall be made in a writing mailed, or after the date on which the request for such disclosure was received from the consumer or such report was first requested, whichever is the later.

(Emphasis added.)

As previously alleged, because Defendants” disclosures do not meet the requirement

of Section 101(c)(1) of 15 U.S.C. section 7001, the disclosures do not satisfy the written

requirement.

62.

Moreover, even if Defendants’ disclosures are deemed to satisfy Section 101(c)(1),

Defendants did not comply with Section 1681d(a)(1)(b) because the disclosures fail to inform the

consumer of the right to have the person who procured the report provide a complete and accurate

disclosure of the nature and scope of the investigation requested.

63.

Section 1681g(c) further provides for summary of rights to obtain and dispute

information in consumer reports and to obtain credit scores:

(¢) Summary of rights to obtain and dispute information in consumer reports and to obtain credit scores

(1) Commission Summary of rights required

(A) In general The Commission shall prepare a model summary of the rights of consumers under this subchapter. (B) Content of summary The summary of rights prepared under subparagraph (A) shall include a description of—

(1) the right of a consumer to obtain a copy of a consumer report under subsection (a) from each consumer reporting agency;

(1) the frequency and circumstances under which a consumer is entitled to receive a consumer report without charge under section 1681j of this title;

(111) the right of a consumer to dispute information in the file of the consumer under section 16811 of this title:

(1v) the right of a consumer to obtain a credit score from a consumer reporting agency, and a description of how to obtain a credit score;

(v) the method by which a consumer can contact, and obtain a consumer report from, a consumer reporting agency without charge, as provided in the regulations of the Bureau prescribed under section 211(c) of the Fair and Accurate Credit Transactions Act of 2003; and

(v1) the method by which a consumer can contact, and obtain a consumer report from, a consumer reporting agency described in section 1681a(w) of this title, as provided in the regulations of the Bureau prescribed under section 1681j(a)(1)(C) of this title.

64. Defendants did not comply with 1681g(c)(B)(1) because the disclosures did not state the right of a consumer to obtain a copy of a consumer report from each consumer reporting agency.

65. Defendants did not comply with 1681g(c)(B)(2) because the disclosure did not state the frequency and circumstances under which a consumer is entitled to receive a consumer report without charge.

66. Defendants did not comply with 1681g(c)(B)(3) because the disclosure did not state

| the right of a consumer to dispute information in the file of the consumer.

67. Defendants did not comply with 1681g(c)(B)(4) because the disclosure did not state the right of a consumer to obtain a credit score from a consumer reporting agency and a description of how to obtain a credit score.

68. Defendants did not comply with 1681g(c)(B)(5) because the disclosure did not state the method by which a consumer can contact, and obtain a consumer report from, a consumer

reporting agency without charge. the method by which a consumer can contact, and obtain a consumer report from, a consumer reporting agency described in section 1681a(w) of this title, as provided in the regulations of the Bureau prescribed under section 1681;j(a)(1)(C) of this title.

THIRD CAUSE OF ACTION FAILURE TO MAKE PROPER DISCLOSURE IN VIOLATION OF THE ICRAA

(Cal. Civ. Code §§ 1786 et seq.) (Plaintiff and ICRAA Class Against All Defendants) 70. Plaintiff incorporates the preceding paragraphs in the Complaint as if fully alleged herein. 71. Defendants are “persons™ as defined by section 1786.2(a) of the ICRAA. 72. Plaintiff and ICRAA Class members are “consumers” within the meaning of section 1786.2(b) of the ICRAA because they are “individuals.” 0 Section 1786.2(c) of the ICRAA defines “investigative consumer report™ as: “The term investigative consumer report means a consumer report in which information on a consumer’s character, general reputation, personal characteristics, or mode of living is obtained through any means.” 74. Accordingly, a background check qualifies as an investigative consumer report under the ICRAA. 0. Section 1786.16(a)(2) of the ICRAA provides: (2) If, at any time, an investigative consumer report is sought for employment purposes other than suspicion of wrongdoing or misconduct by the subject of the investigation, the person seeking the investigative consumer report may procure

the report, or cause the report to be made, only if all of the following apply:

(A) The person procuring or causing the report to be made has a permissible purpose, as defined in Section 1786.12.

(B) The person procuring or causing the report to be made provides a clear and conspicuous disclosure in writing to the consumer at any time before the report is procured or caused to be made in a document that consists solely of the disclosure, that:

(1) An investigative consumer report may be obtained.

(11) The permissible purpose of the report is identified.

(111) The disclosure may include information on the consumer’s character, general reputation, personal characteristics, and mode of living.

(iv) Identifies the name, address, and telephone number of the investigative consumer reporting agency conducting the investigation.

(v) Notifies the consumer in writing of the nature and scope of the investigation requested, including a summary of the provisions of Section 1786.22.

(vi) Notifies the consumer of the Internet Web site address of the investigative consumer reporting agency identified in clause (iv), or, if the agency has no Internet Web site address, the telephone number of the agency, where the consumer may find information about the investigative reporting agency’s privacy practices, including whether the consumer’s personal information will be sent outside the United States or its territories and information that complies with subdivision (d) of Section 1786.20. This clause shall be operative on January 1, 2012.

(C) The consumer has authorized in writing the procurement of the report. (Emphasis added.)

76. As previously alleged, because Defendants’ disclosures do not meet the requirements of section 101(c)(1) of 15 U.S.C. section 7001, the disclosures do not satisfy section 1786.16(a)(2) of the ICRAA requirement that the disclosures be made in writing.

77. As described above, Plaintiff alleges that in evaluating him and other class members | for employment, Defendants procured or caused to be prepared investigative consumer report (e.g. background checks) as described by Civil Code section 1786.2(c).

78. Because the purported disclosures are embedded with extraneous information and are not clear and unambiguous disclosures in stand-alone documents, they do not meet the requirements under the law.

79. Under the ICRAA, it is unlawful to procure or caused to be procured, a consumer report or investigative consumer report for employment purposes unless the disclosure is made in a document that consists solely of the disclosure and the consumer has authorized, in writing, the procurement of the report. Cal. Civ. Code § 1786.16(a)(2)(B)-(C). The inclusion of the Release and other extraneous information therefore violates section 1786.16(a)(2)(B) of the ICRAA.

80. The plain language of the statute clearly indicates that the inclusion of a liability

release in a disclosure form violates the disclosure and authorization requirements of the ICRAA

because such a form would not consist “solely” of the disclosure. 81. By including the Release and other extraneous information, Defendants willfully violated section 1786.16(a)(2)(B) of the ICRAA. Additionally, the inclusion of the extraneous provisions causes the disclosure to fail to be “clear and conspicuous™ and thus violates section 1786.16(a)(2)(B).

82. Based upon facts that are likely to have evidentiary support after a reasonable opportunity for investigation and discovery, Plaintiff alleges that Defendants have a policy and practice of failing to provide adequate written disclosure to applicants and employees, before procuring background checks or causing background checks to be procured, as described above. Pursuant to that policy and practice, Defendants procured background checks or caused background checks to be procured for Plaintiff and class members without first providing a written disclosure in compliance with section 1786.16(a)(2)(B) of the ICRAA, as described above.

83. Defendants’ conduct in violation of Section 1786.16(a)(2)(B) of the ICRAA was and is willful and/or grossly negligent. Defendants acted in deliberate or reckless disregard of their obligations and the rights of applicants and employees, including Plaintiff and class members. Defendants” willful conduct is reflected by, among other things, the following facts:

(a) Defendants are large corporations with access to legal advice;

(b) Defendants required a purported authorization to perform credit and background checks in the process of employing the class members which, although defective, evidences Defendants’ awareness of and willful failure to follow the governing laws concerning such authorizations; and

(c) The plain language of the statute unambiguously indicates that inclusion of a liability release and other extraneous information in a disclosure form violates the disclosure and authorization requirements, and that the disclosure form must contain the name, address, phone number, and/or website address of the investigative consumer reporting agency conducting the investigation.

84. As aresult of Defendants’ illegal procurement of background reports by way of their inadequate disclosures, as set forth above, Plaintiff and class members have been injured including,

but not limited to, having their privacy and statutory rights invaded in violation of the ICRAA. 85. Plaintiff, on behalf of himself and all class members, seeks all available remedies pursuant to Civil Code section 1786.50, including statutory damages and/or actual damages, punitive damages, and attorneys’ fees and costs.

86. In the alternative to Plaintiff’s allegation that these violations were willful or grossly negligent, Plaintiff alleges that the violations were negligent and seeks the appropriate remedy, if any, under Civil Code section 1786.50(a), including actual damages and attorneys’ fees and costs.

FOURTH CAUSE OF ACTION FAILURE TO MAKE PROPER DISCLOSURE IN VIOLATION OF THE CCRAA

(Cal. Civ. Code §§ 1785 et seq.) (Plaintiff and CCRAA Class Against All Defendants) 87. Plaintiff incorporates all paragraphs of this Complaint as if fully alleged herein. 88. Defendants are “persons™ as defined by Section 1785.3(j) of the Consumer Credit Reporting Agencies Act (“CCRAA™). 89. Plaintiff and CCRAA Class members are “consumers™ within the meaning Section 1785.3(b) of the CCRAA, because they are “natural individuals.” 90. Section 1785.3(c) of the ICRAA defines “consumer credit report™ as: any written, oral, or other communication of any information by a consumer credit reporting agency bearing on a consumer’s credit worthiness, credit standing, or credit capacity, which is used or is expected to be used, or collected in whole or in part, for the purpose of serving as a factor in establishing the consumer's eligibility for: ...(2) employment purposes... Thus, a credit report qualifies as a consumer credit report under the CCRAA. 91. Section 1785.20.5(a) of the CCRAA provides, in relevant part: Prior to requesting a consumer credit report for employment purposes, the user of the report shall provide written notice to the person involved. The notice shall inform the person that a report will be used, and shall identify the specific basis under subdivision (a) of Section 1024.5 of the Labor Code for use of the report. The notice shall also inform the person of the source of the report... (Emphasis added.)

92. As described above, Plaintiff alleges that in evaluating him and other class

members for employment, Defendants procured or caused to be prepared consumer credit reports 93. The disclosure provided by Defendants does not identify the specific basis under subdivision (a) of Section 1024.5 of the Labor Code for use of the credit report. This omission clearly violates Section 1785.20.5(a) of the CCRAA, as delineated above.

94. Based upon facts that are likely to have evidentiary support after a reasonable opportunity for investigation and discovery, Plaintiff alleges that Defendants have a policy and practice of failing to provide adequate written disclosures to applicants and employees, before procuring credit reports or causing credit reports to be procured, as described above. Pursuant to that policy and practice, Defendants procured credit reports or caused credit reports to be procured for Plaintiff and class members without first providing a written notice in compliance with Section 1785.20.5(a) of the CCRAA, as described above.

05. Defendants’ conduct in violation of Section 1785.20.5(a) of the CCRAA was and is willful and/or grossly negligent. Defendants acted in deliberate or reckless disregard of their obligations and the rights of applicants and employees, including Plaintiff and class members. Defendants’ willful conduct is reflected by, among other things, the following facts:

(a) Defendants are large corporations with access to legal advice;

(b) Detfendants required a purported authorization to perform credit checks in the process of employing the class members which, although defective, evidences Defendants’ awareness of and willful failure to follow the governing laws concerning such authorizations; and

(c) The plain language of the statute unambiguously indicates that failure to include the provisions identified above violates the CCRAA’s notice requirements, and that the notice must identify the specific basis under subdivision (a) of Section 1024.5 of the Labor Code for use of the credit report and must identify the source of any credit report.

96. Asaresult of Defendants’ illegal procurement of credit reports by way of their inadequate notice, as set forth above, Plaintiff and class members have been injured including, but not limited to, having their privacy and statutory rights invaded in violation of the CCRAA. pursuant to Civil Code section 1785.31, including statutory damages and/or actual damages, punitive damages, injunctive relief, and attorneys’ fees and costs.

98. In the alternative to Plaintiff’s allegation that these violations were willful, Plaintiff alleges that the violations were negligent and seeks the appropriate remedy, if any, under Civil Code section 1785.31(a)(1), including but not limited to actual damages and attorneys’ fees and costs.

FIFTH CAUSE OF ACTION FAILURE TO PROVIDE MEAL PERIODS

(Lab. Code §§ 004, 223, 226.7, 512 and 1198)

(Plaintiff and Meal Period Sub-Class)

99. Plaintiff incorporates by reference the preceding paragraphs of the Complaint as if fully alleged herein.

100. At all relevant times, Plaintiff and the Meal Period Sub-Class members have been non-exempt employees of Defendant entitled to the full meal period protections of both the Labor Code and the applicable Industrial Welfare Commission Wage Order.

101. Labor Code section 512 and Section 11 of the applicable Industrial Welfare Commission Wage Order impose an affirmative obligation on employers to provide non-exempt employees with uninterrupted, duty-free meal periods of at least thirty minutes for each work period of five hours, and to provide them with two uninterrupted, duty-free meal periods of at least thirty minutes for each work period of ten hours.

102. Labor Code section 226.7 and Section 11 of the applicable Industrial Welfare Commission Wage Order (“Wage Order™) both prohibit employers from requiring employees to work during required meal periods and require employers to pay non-exempt employees an hour of premium wages on each workday that the employee is not provided with the required meal period.

103. Compensation for missed meal periods constitutes wages within the meaning of Labor Code section 200.

104. Labor Code section 1198 makes it unlawful to employ a person under conditions that

violate the applicable Wage Order. 105. Section 11 of the applicable Wage Order states:

“No employer shall employ any person for a work period of more than five (5) hours without a meal period of not less than 30 minutes, except that when a work period of not more than six (6) hours will complete the day’s work the meal period may be waived by mutual consent of the employer and employee. Unless the employee is relieved of all duty during a 30 minute meal period, the meal period shall be considered an ‘on duty’ meal period and counted as time worked. An ‘on duty’ meal period shall be permitted only when the nature of the work prevents an employee from being relieved of all duty and when by written agreement between the parties an on-the-job paid meal period is agreed to. The written agreement shall state that the employee may, in writing, revoke the agreement at any time.”

106. At all relevant times, Plaintiff was not subject to a valid on-duty meal period agreement. Plaintiff is informed and believes that, at all relevant times, Meal Period Sub-Class members were not subject to valid on-duty meal period agreements with Defendants.

107. Plaintiff alleges that, at all relevant times during the applicable limitations period, Defendants maintained a policy or practice of not providing Plaintiff and members of the Meal Period Sub-Class with uninterrupted, duty-free meal periods for at least thirty (30) minutes for each five (5) hour work period, as required by Labor Code section 512 ad the applicable Wage Order.

108. Plaintiff alleges that, at all relevant times during the applicable limitations period, Detendants maintained a policy or practice of failing to pay premium wages to Meal Period Sub- Class members when they worked five (5) hours without clocking out for any meal period.

109. Plaintiff alleges that, at all relevant times during the applicable limitations period, Defendants maintained a policy or practice of not providing Plaintiff and members of the Meal Period Sub-Class with a second meal period when they worked shifts of ten or more hours and failed to pay them premium wages as required by Labor Code 512 and the applicable Wage Order.

110. Moreover, Defendants written policies do not provide that employees must take their first meal period before the end of the fifth hour of work, that they are entitled to a second meal period if they work a shift of over ten hours, or that the second meal period must commence before the end of the tenth hour of work, unless waived.

111. At all relevant times, Defendants failed to pay Plaintiff and the Meal Period Sub- regular rates of pay when required meal periods were not provided.

112. Pursuant to Labor Code section 204, 218.6 and 226.7, Plaintiff, on behalf of himself and the Meal Period Sub-Class members, seek to recover unpaid premium wages, interest thereon, and costs of suit.

113. Pursuant to Labor Code section 1194, Code of Civil Procedure section 1021.5, the substantial benefit doctrine, and/or the common fund doctrine, Plaintiff, on behalf of himself and the Meal Period Sub-Class members, seek to recover reasonable attorneys’ fees.

SIXTH CAUSE OF ACTION FAILURE TO PROVIDE REST PERIODS

(Lab. Code §§ 204, 223, 226.7 and 1198) (Plaintiff and Rest Period Sub-Class)

114, Plaintiff incorporates the preceding paragraphs of the Complaint as if fully alleged herein.

115. At all relevant times, Plaintiff and the Rest Period Sub-Class members have been non-exempt employees of Defendants entitled to the full rest period protections of both the Labor Code and the applicable Wage Order.

116. Section 12 of the applicable Wage Order imposes an affirmative obligation on employers to permit and authorize employees to take required rest periods at a rate of no less than ten minutes of net rest time for each four hour work period, or major fraction thereof, that must be in the middle of each work period insofar as practicable.

117. Labor Code section 226.7 and Section 12 of the applicable Wage Order both prohibit employers from requiring employees to work during required rest periods and require employers to pay non-exempt employees an hour of premium wages at the employees’ regular rates of pay, on each workday that the employee is not provided with the required rest period(s).

118. Compensation for missed rest periods constitutes wages within the meaning of Labor Code section 200.

119. Labor Code section 1198 makes it unlawful to employ a person under conditions that 120. Plaintiff alleges that, at all relevant times during the applicable limitations period, Defendants maintained a policy or practice of not providing members of the Rest Period Sub-Class with net rest period of at least ten minutes for each four hour work period, or major fraction thereof, as required by the applicable Wage Order.

121. At all relevant times, Defendants failed to pay Plaintiff and the Rest Period Sub- Class members additional premium wages when required rest periods were not provided.

122. Specifically, Defendants written policies do not provide that employees may take a rest period for each four hours worked, or major fraction thereof, and that rest periods should be taken in the middle of each work period insofar as practicable.

123. Pursuant to Labor Code section 204, 218.6 and 226.7, Plaintiff, on behalf of himself and Rest Period Sub-Class members, seek to recover unpaid premium wages, interest thereon, and costs of suit.

124. Pursuant to Labor Code section 1194, Code of Civil Procedure section 1021.5, the substantial benefit doctrine, and/or the common fund doctrine, Plaintiff, on behalf of himself and Rest Period Sub-Class members, seek to recover reasonable attorneys” fees.

SEVENTH CAUSE OF ACTION FAILURE TO PAY HOURLY AND OVERTIME WAGES

| (Lab. Code §§ 223, 510, 1194, 1197 and 1198) (Plaintiff and Hourly Employee Class)

125. Plaintiff incorporates the preceding paragraphs of the Complaint as if fully alleged herein.

126. At all relevant times, Plaintiff and Hourly Employee Class members are or have been non-exempt employees of Defendants entitled to the full protections of the Labor Code and the applicable Wage Order.

127. Section 2 of the applicable Wage Order defines “hours worked™ as “the time during which an employee is subject to the control of the employer, and includes all the time the employee is suffered or permitted to work, whether or not required to do so.” employees at least the minimum wage set forth therein for all hours worked, which consist of all hours that an employer has actual or constructive knowledge that employees are working.

129. Labor Code section 1194 invalidates any agreement between an employer and an employee to work for less than the minimum or overtime wage required under the applicable Wage Order.

130. Labor Code section 1194.2 entitles non-exempt employees to recover liquidated damages in amounts equal to the amounts of unpaid minimum wages and interest thereon in addition to the underlying unpaid minimum wages and interest thereon.

I131. Labor Code section 1197 makes it unlawful for an employer to pay an employee less than the minimum wage required under the applicable Wage Order for all hours worked during a payroll period.

132. Labor Code section 1197.1 provides that it is unlawful for any employer or any other person acting either individually or as an officer, agent or employee of another person, to pay an employee, or cause an employee to be paid, less than the applicable minimum wage.

133. Labor Code section 1198 makes it unlawful for employers to employ employees under conditions that violate the applicable Wage Order.

134. Labor Code section 204 requires employers to pay non-exempt employees their earned wages for the normal work period at least twice during each calendar month on days the employer designates in advance and to pay non-exempt employees their earned wages for labor performed in excess of the normal work period by no later than the next regular payday.

135. Labor Code section 223 makes it unlawful for employers to pay their employees lower wages than required by contract or statute while purporting to pay them legal wages.

136. Labor Code section 510 and Section 3 of the applicable Wage Order require employees to pay non-exempt employees overtime wages of no less than one and one-half times their respective regular rates of pay for all hours worked in excess of eight hours in one workday, all hours worked in excess of forty hours in one workweek, and/or for the first eight hours worked on the seventh consecutive day of one workweek. employers to pay non-exempt employees overtime wages of no less than two times their respective regular rates of pay for all hours worked in excess of twelve hours in one workday and for all hours worked in excess of eight hours on a seventh consecutive workday during the workweek.

138. Plaintiff is informed and believes that, at all relevant times, Defendants have applied centrally devised policies and practices to him and Hourly Employee Class members with respect to working conditions and compensation arrangements.

139. Atall relevant times, Defendants failed to pay hourly wages to Plaintiff and Hourly Employee Class members for all time worked, including but not limited to, overtime hours at statutory and/or agreed rates.

140. During the relevant time period, Defendants failed to pay Plaintiff and Hourly Employee Class members all earned wages every pay period at the correct rates, including overtime rates, because Defendants directed, permitted or otherwise encouraged Plaintiff and Hourly Employee Class members to perform off-the-clock work.As a result of Defendants’ unlawful conduct, Plaintiff and Hourly Employee Class members have suffered damages in an amount, subject to proof, to the extent they were not paid the full amount of wages earned during each pay period during the applicable limitations period, including overtime wages.

141. Pursuant to Labor Code sections 204, 218.6, 223, 510, 1194 and 1194.2, Plaintiff, on

behalf of herself and Hourly Employee Class members, seek to recover unpaid straight time and ‘ overtime wages, interest thereon and costs of suit.

142.

143. Pursuant to Labor Code section 1194, Code of Civil Procedure section 1021.5, the substantial benefit doctrine, and/or the common fund doctrine, Plaintiff, on behalf of himself and Hourly Employee Class members, seek to recover reasonable attorneys’ fees.

EIGHTH CAUSE OF ACTION FAILURE TO PROVIDE ACCURATE WRITTEN WAGE STATEMENTS

(Lab. Code § 226) (Plaintiff and Wage Statement Penalties Class)

144. Plaintiff incorporates the preceding paragraphs of the Complaint as if fully alleged herein. 145. Labor Code section 226(a) states:

“An employer, semimonthly or at the time of each payment of wages, shall furnish to his or him employee, either as a detachable part of the check, draft, or voucher paying the employee’s wages, or separately if wages are paid by personal check or cash, an accurate itemized statement in writing showing (1) gross wages earned, (2) total hours worked by the employee, except as provided in subdivision (j), (3) the number of piece-rate units earned and any applicable piece rate if the employee is paid on a piece-rate basis, (4) all deductions, provided that all deductions made on written orders of the employee may be aggregated and shown as one item, (5) net wages earned, () the inclusive dates of the period for which the employee is paid, (7) the name of the employee and only the last four digits of his or him social security number or an employee identification number other than a social security number, (8) the name and address of the legal entity that is the employer and, if the employer is a farm labor contractor, as defined in subdivision (b) of Section 1682, the name and address of the legal entity that secured the services of the employer, and (9) all applicable hourly rates in effect during the pay period and the corresponding number of hours worked at each hourly rate by the employee and, beginning July 1, 2013, if the employer is a temporary services employer as defined in Section 201.3, the rate of pay and the total hours worked for each temporary services assignment. The deductions made from payment of wages shall be recorded in ink or other indelible form, properly dated, showing the month, day, and year, and a copy of the statement and the record of the deductions shall be kept on file by the employer for at least three years at the place of employment or at a central location within the State of California. For purposes of this subdivision, ‘copy” includes a duplicate of the itemized statement provided to an employee or a computer-generated record that accurately shows all of the information required by this subdivision.”

146. The Division of Labor Standards Enforcement (*“DLSE”) has sought to harmonize the “detachable part of the check™ provision and the “accurate itemized statement in writing”™ provision of Labor Code section 226(a) by allowing for electronic wage statements so long as each employee retains the right to elect to receive a written paper stub or record and that those who are provided with electronic wage statements retain the ability to easily access the information and convert the electronic statements into hard copies at no expense to the employee. (DLSE Opinion Letter July 6, 20006).

147. Plaintiff is informed and believes that, at all relevant times during the applicable limitations period, Defendants have failed to provide Wage Statement Penalties Sub-Class members with written wage statements as described above.

148. Plaintiff is informed and believes that Defendants’ failure to provide him and Wage Statement Penalties Sub-Class members with accurate written wage statements were intentional in

that Defendants have the ability to provide them with accurate wage statements but have intentionally provided them with written wage statements that Defendants have known do not comply with Labor Code section 226(a).

149. Plaintiff and Wage Statement Penalties Sub-Class members have suffered injuries, in that Defendants have violated their legal rights to receive accurate wage statements and have misled them about their actual rates of pay and wages earned. In addition, inaccurate information on their wage statements have prevented immediate challenges to Defendants’ unlawful pay practices, has required discovery and mathematical computations to determine the amount of wages owed, has caused difficulty and expense in attempting to reconstruct time and pay records, and/or has led to the submission of inaccurate information about wages and deductions to federal and state government agencies.

150. Pursuant to Labor Code section 226(e), Plaintiff, on behalf of himself and Wage Statement Penalties Sub-Class members, seek the greater of actual damages or $50.00 for the initial pay period in which a violation of Labor Code section 226(a) occurred, and $100.00 for each | subsequent pay period in which a violation of Labor Code section 226(a) occurred, not to exceed an aggregate penalty of $4000.00 per class member, as well as awards of reasonable attorneys’ fees and costs.

NINTH CAUSE OF ACTION FAILURE TO TIMELY PAY ALL FINAL WAGES

(Lab. Code §§ 201-203) (Plaintiff and Waiting Time Penalties Sub-Class)

I51. Plantiff incorporates the preceding paragraphs of the Complaint as if fully alleged herein.

152. At all relevant times, Plaintiff and Waiting Time Penalties Sub-Class members have been entitled, upon the end of their employment with Defendants, to timely payment of all wages earned and unpaid before termination or resignation.

153. At all relevant times, pursuant to Labor Code section 201, employees who have been discharged have been entitled to payment of all final wages immediately upon termination. resigned after giving at least seventy-two (72) hours notice of resignation have been entitled to payment of all final wages at the time of resignation.

155. Atall relevant times, pursuant to Labor Code section 202, employees who have resigned after giving less than seventy-two (72) hours notice of resignation have been entitled to payment of all final wages within seventy-two (72) hours of giving notice of resignation.

156. During the applicable limitations period, Defendants failed to pay Plaintiff all of him final wages in accordance with the Labor Code by failing to timelyfinal wages.

I157. Plaintiff is informed and believes that, at all relevant time during the applicable limitations period, Defendants have failed to timely pay Waiting Time Penalties Sub-Class members all of their final wages in accordance with the Labor Code.

158. Plaintiff is informed and believes that, at all relevant times during the applicable limitations period, Defendants have maintained a policy or practice of paying Waiting Time Penalties Sub-Class members their final wages without regard to the requirements of Labor Code sections 201 or 202 by failing to timely pay them all final wages.

159. Plaintiff is informed and believes and thereupon alleges that Defendants’ failure to timely pay all final wages to him and Waiting Time Penalties Sub-Class members have been willful in that Defendants have the ability to pay final wages in accordance with Labor Code sections 201 and/or 202 but have intentionally adopted policies or practices that are incompatible with those requirements.

TENTH CAUSE OF ACTION UNFAIR COMPETITION

(Bus. & Prof. Code §§ 17200 et seq.) (Plaintiff, FCRA, ICRAA, CCRAA and UCL Class)

162. Plaintiff incorporates the preceding paragraphs of the Complaint as if fully alleged herein.

163. Business and Professions Code section 17200 defines “unfair competition™ to include any unlawful business practice.

164. Business and Professions Code section 17203-17204 allow a person who has lost money or property as a result of unfair competition to bring a class action in accordance with Code of Civil Procedure section 382 to recover money or property that may have been acquired from similarly situated persons by means of unfair competition.

165. Federal and California laws require certain disclosures and proper authorization before conducting background checks and obtaining information from credit and background reports in connection with a hiring process.

166. Plaintiff and the FCRA, ICRAA and CCRAA Class re-alleges and incorporates by reference the FIRST, SECOND, THIRD and FOURTH causes of action herein.

167. California law requires employers to pay hourly, non-exempt employees for all hours they are permitted or suffered to work, including hours that the employer knows or reasonable should know that employees have worked.

168. Plaintiff and the UCL Class members re-alleges and incorporates the FIFTH, SIXTH and SEVENTH causes of action herein.

169. Plaintiff lost money or property as a result of the aforementioned unfair competition.

170. Defendants have or may have acquired money by means of unfair competition.

171. Defendants have violated Federal and California laws through their policies and practices of, inter alia, routinely acquiring consumer, investigative consumer and/or consumer credit reports (referred to collectively as “credit and background reports™) to conduct background credit and background reports in connection with their hiring process without providing proper disclosures and obtaining proper authorization in compliance with the law.

172, Plaintiff is informed and believes and thereupon alleges that by committing the Labor Code violations described in this Complaint, Defendants violated Labor Code sections 215, 216, 225, 226.6, 354, 408, 553, 1175 and 1199, which make it a misdemeanor to commit the Labor Code violations alleged herein.

173. Defendants have committed criminal conduct through their policies and practices of, inter alia, failing to comport with their affirmative obligations as an employer to provide non- exempt employees with uninterrupted, duty-free meal periods of at least thirty minutes for each work period of five or more hours before the fifth hour of work, by failing to pay non-exempt employees with rest periods of at least ten minutes for each four hour work period or major fraction thereof.

174. Atall relevant times, Plaintiff and UCL Class members have been non-exempt employees and entitled to the full protections of both the Labor Code and the applicable Wage Order.

175. Defendants’ unlawful conduct as alleged in this Complaint amounts to and constitutes unfair competition within the meaning of Business and Professions Code section 17200 et seq. Business and Professions Code sections 17200 ef seq. protects against unfair competition and allows a person who has suffered an injury-in-fact and has lost money or property as a result of an unfair, unlawful or fraudulent business practice to seek restitution on him own behalf and on behalf of similarly situated persons in a class action proceeding.

176. Asaresult of Defendants’ violations of the Labor Code during the applicable limitations period, Plaintiff has suffered an injury-in-fact and has lost money or property in the form of earned wages. Specifically, Plaintiff has lost money or property as a result of Defendants’ conduct.

177. Plaintiff is informed and believes that other similarly situated persons have been subject to the same unlawful policies or practices of Defendants. Defendants have gained a competitive advantage over other comparable companies doing business in the State of California that comply with their legal obligations.

179. California’s Unfair Competition Law (“UCL”) permits civil recovery and Injunctive for “any unlawful, unfair or fraudulent business act or practice,” including if a practice or act violates or is considered unlawful under any other state or federal law.

180. Accordingly, pursuant to Business and Professions Code sections 17200 and 17203, Plaintiffs request the issuance of temporary, preliminary and permanent injunctive relief enjoining Defendants, and each of them, and their agents and employees, from further violations of the FCRA, ICRAA and CCRAA; and upon a final hearing seek an order permanently enjoining Defendants, and each of them, and their respective agents and employees, from further violations of the FCRA, ICRAA and CCRAA.

I181. Accordingly, pursuant to Bus. & Prof. Code sections 17200 and 17203, Plaintiffs request the issuance of temporary, preliminary and permanent injunctive relief enjoining Defendants, and each of them, and their agents and employees, from further violations of the Labor Code and applicable Industrial Welfare Commission Wage Orders; and upon a final hearing seek an order permanently enjoining Defendants, and each of them, and their respective agents and employees, from further violations of the Labor Code and applicable Industrial Welfare Commission Wage Orders.

182. Pursuant to Business and Professions Code section 17203, Plaintiff, on behalf of himself and FCRA Class, ICRAA Class, CCRAA Class and UCL Class members, seek declaratory relief and restitution of all monies rightfully belonging to them that Defendants did not pay them or otherwise retained by means of its unlawful and unfair business practices.

183. Pursuant to Code of Civil Procedure section 1021.5, the substantial benefit doctrine and/or the common fund doctrine, Plaintiff and FCRA Class, ICRAA Class, CCRAA Class and UCL Class members are entitled to recover reasonable attorneys’ fees in connection with their unfair competition claims.

PRAYER FOR RELIEF

(1) (2)

3) 4)

(3) (6) (7) (8)

9)

(10) (11) (12) (13) (14)

An order that the action be certified as a class action: An order that Plaintiff be appointed class representative; An order that counsel for Plaintiff be appointed class counsel: Unpaid wages;

Actual damages;

Liquidated damages;

Restitution;

Declaratory relief;

Pre-judgment interest;

Statutory penalties;

Civil penalties;

Costs of suit;

Reasonable attorneys” fees; and

Such other relief as the Court deems just and proper.

DEMAND FOR JURY TRIAL

Plaintiff, on behalf of himself, all other similarly situated, hereby demands a jury trial on all

1ssues so triable.

DATED: April 13, 2018 SETAREH LAW GROUP

SHAUN SETAREH