In another of several recent decisions in class action cases issued by California appellate courts, the Second District Court of Appeal last week upheld the denial of class certification in a case brought on behalf of accountants for unpaid overtime. (Soderstedt v. CBIZ, July 7, 2011). The court found that because the responsibilities of each of the alleged class members differed with their levels of experience, the particular engagements they worked on, the clients and clients’ industries, and the other accountants they worked with, common questions of law and fact did not predominate and the proposed class could not be certified.
The plaintiffs who brought the suit were employed by an accounting and financial services firm that provided tax, attest, and litigation support in the greater Southern California area. The firm maintained an office with 55 accountants in Los Angeles who mainly performed audits for public companies, a Bakersfield office of 43 accountants who served a diverse client base including non-profits and government clients, and an Oxnard office of 21 accountants who mainly performed services for construction industry clients. The firm submitted 38 declarations establishing that each assignment was different and required the accountants to utilize their accounting knowledge and judgment in performing the services required for the engagement. Evidence was also submitted demonstrating how the level of client contact differed based on the accountants’ ability and experience, and establishing that their level of supervision normally decreased with each further engagement.
The firm relied upon the administrative exemption to justify the non-payment of overtime, based on the assertion that they performed “under only general supervision work along specialized or technical lines requiring special training, experience, or knowledge.” The appeals court stated that if the issues presented by this defense predominated over common issues, class certification could be defeated on this basis. Finding that the evidence presented on the motion for class certification showed a wide degree of variance in the amount of independent judgment and discretion exercised by the accountants on any given assignment, the court held that class treatment was not appropriate because of the individualized inquiries that would be required to determine if the exemption applied on a case-by-case basis.
Although not essential to its decision, the court also found that class certification was properly denied because the plaintiffs had submitted absolutely no evidence as to how numerous the class was or how they qualified as adequate class representatives.As to the latter point, the court noted that there was no statement by the plaintiffs that they understood the obligations of being a class representative, or any recognition of the “substantial burden that they would be undertaking” to represent absent class members.These findings will also likely prove helpful to employers in defending future class certification motions in wage and hour cases.
- Of Counsel
Ronald Novotny has been representing employers in labor and employment matters in federal and state courts and administrative agencies in California since 1981. He has extensive experience involving union and employer unfair ...
Other AALRR Blogs
Recent Posts
- President Biden’s Administration Halts Department of Labor’s Final Rule for Worker Classification
- Rotational Employees Can Have Their “On” And “Off” Weeks Counted Against Their FMLA Leave Entitlement
- Ninth Circuit Issues Important Decision on Per Diem Pay
- Ninth Circuit Upholds Victory for Trucking Industry: California Meal and Rest Break Rules Preempted by Federal Law as to Commercial Drivers
- They Say Never Discuss Politics In Polite Company, But How Can Employers Handle Impolitic Off-Duty Conduct?
- DOL Permits Back-of-the-Restaurant Staff to Share in Servers’ Tips
- Can California Employers Be Liable For Failure To Prevent Something That Never Happened?
- Employer’s Delay is Fatal to Enforcement of Arbitration Agreement
- California Employers: The federal Department Of Labor’s Final Rule For Worker Classifications Does Not Eliminate The Requirements Under California’s ABC Test
- Court Holds California Law Applies to Offshore Workers on Oil Platforms
Popular Categories
- (43)
- (40)
- (135)
- (22)
- (6)
- (6)
- (31)
- (26)
- (22)
- (14)
- (5)
- (6)
- (4)
- (3)
- (3)
- (14)
- (9)
- (2)
- (2)
- (1)
- (3)
- (1)
- (3)
- (1)
- (1)
- (2)
- (1)
- (1)
- (1)
- (1)
- (1)
- (1)
- (1)
Contributors
- Christopher S. Andre
- Cindy Strom Arellano
- Sarkis A. Atoyan
- Alicia A. Belock
- Eddy R. Beltran
- Rex Darrell Berry
- William M. Betley
- Brigham M. Cheney
- Michele L. Collender
- Kevin R. Dale
- Scott K. Dauscher
- Alexandria M. Davidson
- William A. Diedrich
- Alfonso Estrada
- Lauren D. Fierro
- Paul S. Fleck
- Robert Fried
- L. Brent Garrett
- Carol A. Gefis
- Kieran D. Hartley
- Amber S. Healy
- Jonathan Judge
- David Kang
- Nate J. Kowalski
- Joshua N. Lange
- Catherine M. Lee
- Thomas A. Lenz
- David M. Lester
- Martin S. Li
- Mia A. Lomedico
- Jorge J. Luna
- Michael J. Morphew
- Ronald W. Novotny
- Michael J. O'Connor, Jr.
- Aaron V. O'Donnell
- Shawn M. Ogle
- Sharon J. Ormond
- Justin R. Peters
- Chesley D. Quaide
- Todd M. Robbins
- Irma Rodríguez Moisa
- Casandra P. Secord
- Jon M. Setoguchi
- Lauren B. Shelby
- Ann K. Smith
- Amber M. Solano
- Susana P. Solano
- Ethan G. Solove
- Susan M. Steward
- April Szabo
- Jay G. Trinnaman
- Jonathan S. Vick
- Robert L. Wenzel
- Brian M. Wheeler
- Glen A. Williams
- Kimberley A. Worley
- Lisa C. Zaradich
Archives
2021
2020
- December 2020
- October 2020
- August 2020
- July 2020
- June 2020
- May 2020
- April 2020
- March 2020
- January 2020
2019
- December 2019
- November 2019
- October 2019
- September 2019
- August 2019
- June 2019
- May 2019
- April 2019
- March 2019
- February 2019
2018
- December 2018
- November 2018
- October 2018
- September 2018
- August 2018
- July 2018
- June 2018
- May 2018
- March 2018
- February 2018
- January 2018
2017
- December 2017
- November 2017
- October 2017
- September 2017
- August 2017
- June 2017
- May 2017
- March 2017
- February 2017
2016
- December 2016
- November 2016
- October 2016
- September 2016
- August 2016
- July 2016
- June 2016
- May 2016
- April 2016
- March 2016
- February 2016
2015
- December 2015
- October 2015
- September 2015
- August 2015
- July 2015
- June 2015
- May 2015
- April 2015
- March 2015
- February 2015
- January 2015
2014
- November 2014
- October 2014
- September 2014
- August 2014
- July 2014
- June 2014
- May 2014
- April 2014
- February 2014
- January 2014
2013
- October 2013
- September 2013
- July 2013
- June 2013
- May 2013
- April 2013
- March 2013
- February 2013
- January 2013
2012
- October 2012
- September 2012
- August 2012
- July 2012
- June 2012
- May 2012
- April 2012
- March 2012
- February 2012
- January 2012
2011
- December 2011
- November 2011
- October 2011
- September 2011
- August 2011
- July 2011
- June 2011
- May 2011
- April 2011
- March 2011
- February 2011
- January 2011