Class Action, Employment Law
A large settlement has been reached for a group of employees who were unfairly required to pay business expenses that their employer should have paid. In a class action lawsuit filed by my firm Marlin & Saltzman, salespeople in certain divisions of Stryker Sales Corporation, a medical supply company, alleged that the company broke California law and engaged in unfair business practices when it failed to reimburse its salespeople for expenses such as mileage, Internet access and cell phone costs.
The lead plaintiff alleged that he spent thousands of dollars on unreimbursed business expenses when he worked for Stryker.
The lead plaintiff, John Hopkins, alleged that he spent thousands of dollars on unreimbursed business expenses when he worked for Stryker in the Bay Area. Those included expenses for mileage in his own car; his computer; Internet access; an office; and cell phone service. Importantly, he alleged that there were dozens of other California salespeople who were in the same position before the company changed its reimbursement policy in February of 2011. This permitted us to pursue the case as a class action—a lawsuit bringing together many people with the same allegations against the same defendant. Winning certification as a class action was an important step in the case because together, the defendants were able to ask for substantially more money, giving Stryker a strong incentive to settle the case.
In fact, that’s exactly what the company did. Although it continues to deny any wrongdoing, it has nonetheless agreed to pay $4.25 million to end the case. Because there are only 95 salespeople in the class, each person will be eligible for a substantial payment. (If you think you might be part of the class, check http://www.strykerclassaction.com for more information about who is included.)
This lawsuit is over, but Marlin & Saltzman continues to represent Californians whose employers have illegally required them to pay their own business expenses. California law requires employers to reimburse any expenses incurred by employees for the job, such as business lunches, travel costs or mileage driven for work in the employees’ own cars. This means reimbursement of the full amount—not, as some companies try, consistently denying full reimbursement. Nor may a company deduct business costs, such as office supplies, from your paycheck. And state law requires that courts award interest on missed payments as well, which can drive up the compensation considerably in any lawsuit.
About the Author: Louis Marlin is a partner at Marlin & Saltzman in Irvine, Calif., and an experienced litigator with a focus on complex class actions. He has substantial experience in employee rights litigation, including wage and hour claims, misclassification and employment discrimination. His experience includes serving as a lead plaintiff’s attorney in multiple high-profile class actions.
Originally published on LawyerCentral by Louis Marlin on March 25, 2013 Read the original (Internet Archive).