Court of Appeal holds Code Civ. Proc. § 1033 (a) not applicable to minimum wage and overtime claims: Gramajo v. Joe’s Pizza on Sunset, Inc.

In Gramajo v. Joe’s Pizza on Sunset, Inc. (2024) 100 Cal.App.5th 1094, the Court of Appeal (Second Appellate District, Division Eight) held that employees who prevail in actions for unpaid minimum wage and overtime are entitled to reasonable litigation costs under Lab. Code § 1194 (a) “irrespective of the amount recovered.”

Plaintiff sued Defendant for failing to pay approximately $15,000 in minimum wage and overtime wages and $11,000 in unreimbursed expenses. The trial court awarded Plaintiff approximately $7,500 in unpaid wages but found no evidence to support his expense claim. Plaintiff sought $300,000 in attorney’s fees and $27,000 in costs, but the trial court denied both motions under Code Civ. Proc. § 1033(a), finding he had “acted in bad faith by artificially inflating his damages figure and including equity claims he never intended to pursue.” 

Plaintiff appealed, arguing he was entitled to reasonable litigation costs under Lab. Code § 1194 (a). The Court of Appeal concurred, holding that Lab. Code § 1194 (a) and Code Civ. Proc. § 1033 (a) are irreconcilable but that the former should control because “that statute is more recently enacted and more specific.” Defendant, relying on Chavez v. City of Los Angeles (2010) 47 Cal.4th 970, argued that the absence of a Code Civ. Proc. § 1033(a) carveout for FEHA cases precluded a similar exemption for wage and hour cases. The court disagreed, finding in Lab. Code § 1194 (a) “no analogous standard” to FEHA’s discretionary fee provision, and remanded to the trial court to determine reasonable fees and costs. 

Full opinion

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