In the case of Morales v. Factor Surfaces LLC, the California Court of Appeal ruled against Factor Surfaces LLC (Factor) for failing to pay overtime wages to a former employee, Byron Jerry Morales (Morales).
Morales regularly worked shifts exceeding 40 hours per week and was promised a fixed daily rate.
However, the employer failed to pay him overtime or maintain proper employment records. After Morales requested overtime compensation, he was terminated.
The court found that Factor provided no reliable records of Morales’ hours or pay.
As a result, the court accepted Morales’ own calculations and awarded him $42,792 in unpaid overtime wages, along with additional penalties for wage statement violations and other labor law breaches. The total judgment amounted to $99,394.16.
Key Lessons Learned From this Case:
- Employers must maintain accurate records of employee hours and pay to avoid disputes.
- Failure to pay overtime and provide wage statements can result in significant financial penalties.
- Courts may favor employee claims if employers fail to meet recordkeeping requirements.
If you want to know more about overtime regulations, read our guide on California Overtime Laws.
