Confidential vs National Retailer
$5,600,000 Recovered for California Workers
Confidential vs National Retailer a Case Review By Setareh Law Group
Setareh Law Group successfully represented a class of employees in a significant wage and hour lawsuit against an employer who engaged in multiple, systematic violations of California labor laws. Through persistent advocacy and thorough litigation, the case resulted in substantial compensation for workers who had been denied their rightful earnings and legally mandated benefits.
Due to confidentiality, party names and docket details aren’t public.
Confidential vs National Retailer: Wage Theft Exposed: 3 Devastating Violations That Cost Retailer $5.6 Million
The Case at a Glance
This case involved three distinct categories of labor law violations that affected the entire class of employees:
1. Meal and Rest Break Denials
The employer systematically failed to provide employees with their legally required meal and rest periods. Under California law, this represents one of the most common, yet serious, workplace violations. Employees were either:
- Denied breaks entirely due to workload demands
- Pressured to work through their break periods
- Not given timely or uninterrupted breaks as required by law
When employers violate meal and rest break requirements, employees are entitled to one hour of pay at their regular rate for each day a break was denied. These are substantial penalties that can accumulate to tens of thousands of dollars per employee over time.
2. Unpaid Vacation and Floating Holiday Compensation
The employer failed to properly compensate employees for their accrued vacation time and floating holidays. In California, earned vacation time is considered wages, and employers cannot implement “use it or lose it” policies. Specific violations included:
- Not paying out accrued vacation time when employees left the company
- Failing to properly track or credit floating holidays
- Implementing policies that illegally forfeited earned time off
- Miscalculating vacation accrual rates
This type of violation is particularly egregious because employees had already earned this compensation through their work, yet were systematically denied payment.
3. Final Wage Payment Failures
Perhaps most troubling, the employer violated California’s strict “waiting time penalties” laws by failing to provide departing employees with all earned wages when they left employment. California Labor Code requirements are clear:
- Terminated employees must receive all final wages immediately on their last day
- Employees who resign must receive final wages within 72 hours (or immediately if they provide at least 72 hours notice)
Final paychecks must include all unpaid wages, accrued vacation time, earned bonuses, and any other compensation owed. The employer’s systematic failure to comply with these requirements triggered substantial penalties.
Understanding the Financial Impact
Unpaid Vacation:
Employees who accrued even two weeks of vacation annually over several years could be owed thousands in unpaid vacation wages, plus interest.
Waiting Time Penalties:
When employers fail to pay final wages on time, they owe continuing wages at the employee’s daily rate for up to 30 days. Potentially adding thousands of additional dollars to what’s owed.
When multiplied across a class of employees over several years, these violations resulted in the significant settlement Mr. Setareh secured.
Meal and Rest Break Violations
- Employers must provide a 30-minute unpaid meal break for shifts over 5 hours and a second meal break for shifts over 10 hours
- Employees are entitled to paid 10-minute rest breaks for every 4 hours worked
- Violations occur when employers pressure employees to work through breaks, fail to schedule breaks, or don’t provide a compliant break policy
- An employee denied just one meal break and one rest break per shift over one year could be owed approximately $5,000 in penalties alone (assuming 5 workdays per week).
Off-the-Clock Work
- Requiring employees to perform work before clocking in or after clocking out
- Mandatory security checks, donning/doffing uniforms, or attending meetings without compensation
- Answering emails or phone calls during unpaid breaks or off-hours
Overtime Violations
- Failing to pay time-and-a-half for hours worked beyond 8 in a day or 40 in a week
- Misclassifying employees as exempt when they should receive overtime
- Improperly calculating overtime rates
Minimum Wage Violations
- Paying below state or local minimum wage rates
- Illegal tip pooling or requiring employees to pay business expenses that bring wages below minimum wage
- Failing to pay for all hours worked
Misclassification Issues
- Classifying employees as independent contractors to avoid paying benefits and overtime
- Incorrectly designating employees as “exempt” from overtime requirements
Final Paycheck Violations
- California requires immediate payment of final wages to terminated employees
- Employees who quit must receive their final paycheck within 72 hours
- Final paychecks must include all accrued vacation time and earned wages
Wage Statement Violations
- Failing to provide accurate, itemized wage statements showing hours worked, rates of pay, and deductions
- Missing required information on pay stubs
Unpaid Reimbursements
- Failing to reimburse employees for necessary business expenses like mileage, cell phone use, or required uniforms
Why These Cases Matter:
Wage and hour class actions serve a critical function: they hold employers accountable when violations are systematic and affect multiple workers. Individual employees often feel powerless against large corporations, and the amount owed to any single worker may make individual litigation impractical. Class actions level the playing field and ensure that:
- Employees receive the compensation they’ve earned
- Employers face meaningful consequences for violating labor laws
- Workplace practices are reformed to protect future employees
- Other companies are deterred from similar violations
Mr. Setareh’s success in this case demonstrates the power of aggressive advocacy on behalf of workers’ rights and the importance of holding employers accountable. No matter how large or well-defended they may be.
Do you believe you've been denied any of these or other rights at work?
If you believe you have been a victim of any of these wage and hour violations, you don’t have to accept it. California law provides strong protections for workers, and you may be entitled to recover thousands of dollars in unpaid wages, penalties, and interest.
Many employees don’t realize that even seemingly small violations like missed meal breaks or a few minutes of off-the-clock work each day can add up to substantial compensation when calculated over time. You could be owed far more than you think.
Don't wait. California has strict deadlines for filing wage and hour claims.
Your case evaluation is 100% FREE, and you pay nothing unless we recover compensation for you. Click the button below to get started. Our experienced wage and hour attorneys will review your case and explain your rights at no cost and with no obligation.
Thank You For Reading a Confidential vs National Retailer a Case Review By Setareh Law Group
*Disclaimer: This information is provided for educational purposes and does not constitute legal advice. Each case is unique, and outcomes depend on specific facts and circumstances. Consult with a qualified California employment attorney to discuss your individual situation. The settlements and case results summary overview described on this page represent outcomes in specific cases and should not be interpreted as a guarantee, warranty, or prediction of the outcome of any other case. Case valuations depend on numerous factors including the severity of injuries, the strength of evidence, the jurisdiction, and many other variables unique to each matter.
Practice Areas:
Table of Contents
- verified by Trustindex