Clarks Shoes in California Accused of Unpaid Overtime Violations

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Clarks Shoes was accused of shorting retail managers of their wages by plaintiff Harriette Tapia in an unpaid overtime class action lawsuit filed in April 2012, alleging that Clarks owes overtime pay to store managers of dozens of its retail locations in California.

Tapia’s argument is that commissions should not be counted towards overtime pay. However, Los Angeles Superior Court Judge Frederick C. Shaller tentatively dismissed the wage and hour class action lawsuit, saying that Tapia specified that she received sufficient commissions to qualify for a retail sales overtime exemption.

By her own admission, Tapia stated in her unpaid overtime lawsuit that her pay was “more than one and a half times the minimum wage,” and that “more than half of her pay came from commissions.”

Consequently, in Judge Shaller’s opinion, Tapia qualifies for the labor code “inside retail sales” overtime exemption. He also dismissed Tapia’s claim that Clarks failed to provide rest and meal breaks, as she could not recall when she might have had to skip one.

Tapia asked the judge to reconsider his tentative decision. He argued that the definition of “commission,” as found in the Department of Labor’s Field Operations Handbook, is not the same as the commission she earned as a manager from all net sales made in her store.

Tapia said Clarks is “claiming the commissions are such that they’re not required to provide overtime. … [The handbook] is not talking about a company getting commissions it’s talking about a person getting commissions.”

She also asked the judge to consider other plaintiffs’ claims regarding work breaks, but Clarks’ lawyer countered that the case is “about Ms. Tapia and her own personal experiences.”

Judge Shaller says he is taking all information under consideration before making a final ruling.

The Unpaid Overtime Class Action Lawsuit is Harriette Tapia v. The Clarks Companies N.A., et al., Case No. BC482183, in the Superior Court of the State of California, County of Los Angeles.

History of Fair Labor

The Fair Labor Standards Act (FLSA), is a federal statute regulating working conditions. The FLSA established a national minimum wage, guaranteed “time-and-a-half” for overtime in certain jobs, introduced a maximum 44-hour seven-day workweek, and prohibited most child labor.

Under California law, non-exempt (hourly) employees are entitled to 1.5 times their regular rate of pay for all hours worked over eight hours a day and 40 hours per week. Employers must prohibit working off the clock, and are required to keep accurate pay records of their employees going back at least three years.

Violations against employees include late or missed meal periods, missed rest breaks, and unpaid overtime.

Wage and hour lawsuits are one of the fastest growing types of class action lawsuits. The Department of Labor said that during 2010, “there were 40,000 wage-and-hour complaints … up about 15 percent from the roughly 35,000 complaints in fiscal 2009” nationwide. That number has increased annually since then, with most lawsuits alleging unpaid overtime or misclassification of workers as exempt.

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.