South-Western - Management  
California Employer Sues State
Topic Compensation
Key Words Overtime, back pay, National Labor Relations Act, Immigration Reform and Control Act
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News Story

In a novel approach, Masayoshi Kaji, the owner of an LA sushi restaurant facing wage payment claims by two undocumented workers has filed a class-action lawsuit against the California labor commissioner for defying federal immigration law.

In April, the commissioner awarded the sushi restaurant owner’s two former employees more than $35,000 in back wages plus penalties. The award covers unpaid overtime, missed rest periods and missed meal periods between February 2005 and December 2007.

The class action seeks an injunction against the commissioner on behalf of Kaji and any California employers who are subject to an administrative action and an award of wages sought by a person who is not legally authorized to work in the United States. Kaji’s lawyer cites the precedent of Hoffman Plastics Compounds v. National Labor Relations Board, in which the U.S. Supreme Court overturned an award of back pay to an undocumented alien who sued an employer for a violation of the National Labor Relations Act.

Kaji has also asked the court to require the employees to reimburse him for all wages they received from him. But California Labor Code Section 1171.5 provides that “all protections, rights, and remedies available under state law are available to individuals regardless of immigration status who have applied for employment, or who are or who have been employed in this state.”

Federal courts have been careful to distinguish the Hoffman case, which applied to back work that had not actually been performed, from cases for work that has been performed.

In Kaji’s lawyer’s opinion, the employees were working here illegally, and therefore, the commissioner has no jurisdiction to give them wages.

Questions
1.

Do you agree with the employer in this case that workers who are not legally authorized to work in the United States should not be granted the same protections as those that are? Why or why not? Be prepared to defend your viewpoint in class.

2.

The employees were awarded back pay for unpaid overtime, missed rest time, and missed meal periods. What do these awards tell us about their employment status at the time?

3.

What is the Immigration Reform and Control Act and how does it apply to this case?

Source “California Employer Sues State Over Wage Claims for Illegal Workers,” Workforce Management, July 14, 2008 v87 i12 p4.
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