Fresenius USA Manufacturing Moves for Summary Judgment in Overtime Suit

Fresenius USA Manufacturing allegedly violated California's labor laws governing meal periods, rest breaks, and overtime compensation. In a March 14, 2022 order, the court granted the Defendant's Motion for Summary Judgment.

The Case: Cota v. Fresenius U.S., Inc.

The Court: United States District Court, Southern District of California

The Case No.: 18cv1163-LAB

The Plaintiff: Cota v. Fresenius U.S., Inc.

The plaintiff in the case, Sergio Cota, worked for the Defendant, Fresenius USA Manufacturing, Inc. as a truck driver from May 21, 2008 through April 19, 2017. During his time employed at the company, Cota claims the company violated California's labor laws relating to meal periods, rest breaks, and overtime pay. He also filed derivative claims for failure to pay wages due upon termination, failure to provide accurate itemized wage statements as required by law, violation of California's Unfair Competition Law ("UCL"), and violation of the California Private Attorneys General Act ("PAGA").

The Defendant: Cota v. Fresenius U.S., Inc.

The defendant in the case (FUSA Manufacturing, plus parent company and co-defendant Fresenius USA, Inc.) employed Cota as a driver. In December 2018, after Cota filed his claims, the Secretary of Transportation declared that the Motor Carrier Safety Act of 1984 preempted California's meal and rest break rules for commercial drivers. The Federal Motor Carrier Safety Administration then stated that the declaration applied to any future enforcement of the specified statutes, even those connected with alleged conduct that occurred before the declaration.

Details of the Case: Cota v. Fresenius U.S., Inc.

When the Ninth Circuit Appeals Court took up another action involving the FMCSA's preemption decision (Int'l Bhd. of Teamsters, Local 2785 v. FMCSA, Case No. 19-73488), the parties in Cota v. Fresenius U.S., Inc. jointly moved to stay the case and await the court's decision. Since it was reasonable to expect the other case's ruling to be "controlling" in the Cota v. Fresenius U.S., Inc. case, the Court granted the motion to stay. In Int'l Bhd. of Teamsters, Local 2785 v. FMCSA, the Ninth Circuit upheld FMCSA's preemption determination but found that FMCSA's opinion on retroactivity was not a reviewable final agency action. In a March 14, 2022 order, the court determined that Cota's wage and rest period claims relied on unenforceable California state law and that his overtime allegations overlooked that he was exempt from the overtime protections used as the basis for the claim. The other wage-related claims Cota filed were derivative of the first three failed claims, and the attached UCL and PAGA claims cannot stand on their own without another claimed violation as support. Based on these arguments, the court granted Fresenius U.S.'s Motion for Summary Judgment and entered judgment in Defendant's favor.

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