Unpaid Overtime Class Action Lawsuit Filed Against Costco

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Costco is facing an unpaid overtime and wrongful termination class action lawsuit filed by a former employee who alleges the warehouse retailer ignored California labor laws and dismissed sexual harassment that had been reported.

Plaintiff Micah Ornelas, in the unpaid overtime lawsuit, claims that Costco has engaged in several illegal labor practices, including failing to provide required rest and/or meal breaks, or compensate employees for paid breaks, and for being fired after reporting sexual harassment to his supervisor.

During his employment at Costco, Ornelas was allegedly approached by a female coworker who claimed that their manager sexually harassed and threatened her. She reported to Ornelas that when she informed the appropriate channels within the Costco chain of the manager’s sexual harassment, she was dismissed and told to keep quiet about the issue. Ornelas brought the issue up to his supervisor who stated that the manager would be reprimanded.

It was later discovered that the manager had instead been promoted to another leadership position. Ornelas continued to bring the issue up with his supervisor on behalf of his coworker and was told that “the harassment complaint was ‘none of his business’ and repeated it several times.”

Additionally, Ornelas himself experienced sexual harassment while working at Costco, as his manager allegedly stared at his bottom, even after Ornelas told him to stop: “The manager responded that there was no rule against him staring at [Ornelas’] bottom.” When Ornelas reported this incident to his supervisor, he was told to clock out and go home.

Ornelas, in his Costco unpaid overtime lawsuit, reported that he was fired just a few days after this incident and did not receive all the wages due to him upon termination of employment. As a result, Ornelas and his employment attorneys accuse Costco of failure to compensate rest and meal breaks, failure to pay earned wages, failure to pay termination wages, failure to pay overtime, harassment and failure to prevent harassment, and wrongful termination.

Ornelas seeks compensation for himself and for the currently undefined Class Members who have also experienced sexual harassment and violation of wage and labor laws by Costco.

The Costco Wage and Hour Lawsuit is Ornelas, et al. v. Costco Warehouse Corp., et al., Case No. BC545457, in the Superior Court  of the State of California, County of Los Angeles.

California Labor and Sexual Harassment Laws

California labor and anti-harassment laws can be tougher than those in other states.  According to the California Division of Labor Standard Enforcement, California law requires the following compensation and breaks for employees:

“(A) 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 the employee. (B) If an employer fails to provide an employee a meal period in accordance with the applicable provisions of this order, the employer shall pay the employee one (1) hour of pay at the employee’s regular rate of compensation for each workday that the meal period is not provided.”

Additionally, the Fair Employment and Housing Commission of California states:

“Government Code section 12940, subdivision (k), requires an entity to take “all reasonable steps to prevent harassment from occurring.” If an employer has failed to take such preventative measures, that employer can be held liable for the harassment. A victim may be entitled to monetary damages even though no employment opportunity has been denied and there is no actual loss of pay or benefits.”

Join a Free Unpaid Overtime Class Action Lawsuit Investigation

If you were forced to work off the clock or without overtime pay in California within the past 2 to 3 years, you have rights – and you don’t have to take on the company alone. Learn more and obtain a free evaluation of your case to see if you’re eligible for back pay and other compensation at the Unpaid Overtime Lawsuit: Wage & Hour, Overtime Pay Class Action Lawsuit Investigation.