Key 2021 California Employment Law Case: Donohue v. AMN Services, LLC

Throughout 2020, the California courts were fairly quiet. However, there are a few significant employment law cases scheduled to appear before the California Supreme Court in 2021. 

Donohue v. AMN Services, LLC: Scheduled to Appear before California Supreme Court in 2021

Case Info: #19-31 Donohue v. AMN Services, LLC, S253677. (D071865; 29 Cal.App.5th 1968; San Diego County Superior Court; 37-2014-00012605-CU-OE-CTL.) 

In 2021, Donohue v. AMN Services, LLC will appear before the California Supreme Court. The case addresses the question of whether employers can use overtime pay practices and policies to round employees’ time to shorten or delay meal periods?

The Plaintiff, Donohue, Claims AMN Violated California Labor Law: 

According to the lawsuit, AMN Services (AMN) used a computer-based system. According to the plaintiff, employees clicked on an icon to open the program each day so they could clock in and out for the start of their shift, their meal periods, and the end of their shift. According to the suit, the employee’s on the clock time (recorded in 10 minute increments) was rounded to the nearest hundredth. The Plaintiff claims there were no predetermined meal and rest  breaks, but that there was a written AMN policy that workers were to take their meal and rest breaks as mandated under California law. The plaintiff claims that AMN’s timekeeping program had a drop-down question allowing employees to indicate why they did not record a mandatory meal period, and that if they indicated they voluntarily chose not to take their 30 minute meal period, no penalty payment was provided. 

Did AMN Violate Labor Law? 

When the trial court considered the issue presented in Donohue v. AMN Services, LLC, they found no evidence of a uniform policy to deny employee meal periods. In the original complaint, the Plaintiff did not claim that AMN’s rounding practice was a labor law violation resulting in denial of employee meal periods. On appeal, the Plaintiff argued that the rounding of employee hours should not be applied to meal period time punches. The Court of Appeals argued that the California standard based on past court decisions about rounding does apply to meal periods, so the court would only need to consider how frequently the company’s rounding policy resulted in rounding up and down, rather than the number of meal period violations assessed (or circumvented). 

The California Supreme Court’s Decision on Donohue v. AMN Services, LLC

When Donohue v. AMN Services, LLC comes before the California Supreme Court in 2021, their decision could have a significant impact on related cases throughout the state. If the court agrees with the Court of Appeals the California Supreme Court decision would lend further support to the argument that rounding policies are typically acceptable for California employers. The California Supreme Court’s decision, regardless of which argument they support, will provide additional guidance on how California employers should implement any timekeeping rounding policies (including rounding policies for employee meal periods and breaks). 

If you have questions about California labor law violations or how employment law protects you against labor law violations, please get in touch with Blumenthal Nordrehaug Bhowmik DeBlouw LLP. Experienced employment law attorneys are ready to assist you in any one of various law firm offices located in San Diego, San Francisco, Sacramento, Los Angeles, Riverside, and Chicago.