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1 TIMOTHY J. LONG (STATE BAR NO. 137591)
tjloing@orrick.com ,EM)OR.«=.>-ir
2 NICHOLAS J. HORTON (STATE BAR NO. 289417)
nhorton(^orrick.com
3 ORRICK, HERRINGTON & SUTCLIFFE LLP DEC 2 1 2018
400 Capitol Mall, Suite 3000
4 Sacramento, CA 95814-4497
By. T. Elder
Telephone: +1 916 447 8299 Deputy Clerk
5 Facsimile: +1 916 329 4900
6 Attomeys for Defendant
HEALTH NET OF CALIFORNIA, INC.
7
8 SUPERIOR COURT OF THE STATE OF CALIFORNIA
9 COUNTY OF SACRAMENTO
10 ANDREA SPEARS, an individual, on behalf Consolidated Case No. 34-2017-00210560-
of herself and on behalf of all persons CU-OE-GDS
11 similarly situated.
Plaintiff, DECLARATION OF JULIET L.
12
CRIMSON IN SUPPORT OF MOTION
13 AS TO WHY ARANA'S CASE SHOULD
HEALTH NET OF CALIFORNIA, INC., a NOT PROCEED AS A PAGA
14 Caiifomia Corporation; and Does 1 through REPRESENTATIVE ACTION
50, inclusive. Date: April 11,2019
i5 Time: 10:00 a.m.
Defendants. Dept: 35
16 Judge: Hon. Alan G. Perkins
17
18 TOMAS R. ARANA, on behalf of himself, all Complaint Filed: August 1,2017
others similarly situated. ConsoUdated Complaint FUed: Dec. 21,2017
19
Plaintiff,
< 20
21
o HEALTH NET OF CALIFORNIA, INC., a
22 Caiifomia corporation; and DOES 1-50,
inclusive.
cc 23
Defendant.
o 24
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DECLARATION OF JULIET L. GRJMSON IN SUPPORT OF MOTION
ASTO WHY ARANA'S CASK S H O I i r n NOT PRfSrRPn AS A PAriA TjRPOCCCTviTATn/^c Ar"rir«T..i
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1. Juliet L. Grimson, hereby declare as follows:
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.1. I am a Litigation Administration Specialist for Health Net, Inc. ("HNI"). I make
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this declaration on personal knowledge and, if swom as a witness, could competently testify to
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the following facts except where otherwise indicated.
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2. As part of my job duties, 1 receive docunients that are served on CT Corporation
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System in its capacity as HNI's agent for service of process.
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3. On or about May 12,2017,1 received a service of process transmittal from CT
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Corporation System, transmitting a copy of thei legal process served on CT Corporation System in
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its capacity as HNI's agent for service of process. The legal process transmitted to me by CT
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Corporation System consists of a letter dated May 9,2017, addressed to HNI and to the "PAGA
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Administrator" of the California Labor and Workforce Development Agency, from the Setareh
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Law Group. A tme and correct copy of the service of process transmittal notice and letter are
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attached hereto as Exhibit A.
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I declare under the penalty of perjury under the laws of the State of California that the
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foregoing is tme and correct. Executed this th day of December, 2018 at Woodland HUls,
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Caiifomia.
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18
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y Juliet L. Grimson
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-2-
j DECLARATION OF JULIET L. GRIMSON IN SUPPORT OF MOTION
ASTn WHY ARANA'SPASP SHnrnnMOTPPnr-Rpn AS A PAriA PRPPRscxiTAxn/u Kr^\r\^\
EXHIBIT A
CT Corporation Service of Process
Transmittal
05/12/2017
CT Log Number 531218562
TO: Juliet Grimson
Health Net, Inc.
21650 Oxnard St Ste 1560
Woodland Hills, CA 91367-7803
RE: P r o c e s s S e r v e d in C a l i f o r n i a
FOR: HEALTH NET, INC. (Domestic State: DE)
ENCLOSED ARE COPIES OF LEGAL PROCESS RECEIVED BY THE STATUTORY AGENT OF THE ABOVE COMPANY AS FOLLOWS:
TITLE OF ACTION: RE: California Labor and Workforce Development Agency / / To: Health Net, Inc.
OOCUMENT(S) SERVED: Letter, Attachment
COURT/AGENCY: None Specified
Case # None Specified
NATURE OF ACTION: Letter of Intent - Failure to provide meal periods
ON WHOM PROCESS WAS SERVED: C T Corporation System, Los Angeles, CA
DATE AND HOUR OF SERVICE: By Certified Mail on 05/12/2017 postmarked on 05/10/2017
JURISDICTION SERVED : California
APPEARANCE OR ANSWER DUE: Within 30 days
ATTORNEY(S) / SENDER(S): Shaun Setareh ^
SLG Setareh Law Group
9454 WILSHIRE BLVD
SUITE 907
BEVERLY HILLS, CA 90212
(310) 888-7771
ACTION ITEMS: CT has retained the current log. Retain Date: 05/12/2017, Expected Purge Date:
05/17/2017
Image SOP,
Email Notification, Juliet Grimson Juliet.L.Grimson@healthnet.com
SIGNED: C T Corporation System
ADDRESS: 818 West Seventh Street
Los Angeles, CA 90017
TELEPHONE: 213-337-4615
Page 1 of 1 / MB
Information displayed on this transmittal is for CT
Corporation's record keeping purposes only and is provided to
the recipient for quick reference. This information does not
constitute a legal opinion as to the nature of action, the
amount of damages, the answer date, or any information
contained in the documents themselves. Recipient is
responsible for interpreting said documents and for taking
appropriate action. Signatures on certified mail receipts
confirm receipt of package only, not contents.
'C'ERtlFIElJWtilL.
$6,983 IS?) §
SHAUN SETAREH us POSTAGE r
9454 WILSHIRE BLVD., Suite 907 PtRST4:LA8S I
FROM 90212 I
BEVERLY HILLS, CA 90212 MAY 10 2017 L ,
70X3 imO 0001 ltS4 3ms
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11. For all subsequent violations of Labor Code § 1197, regardless bf whether the initial
violation is deemed to be intentional, $250.00 for each aggrieved employee per pay
period for each violation (penalties set by Labor Code § 1197.1 (a)( 1 )-(2)).
' Failure to(Lab.
• •
Pay Premium Wages at the Regular
Code §§ 223,226.7,512, Rate of Pav
and 1198)
Labor and Workforce Development Agency / Health Net, Inc.
May9,2017Page 12of 18
Labor Code § 223 states.
Where any statute or contract requires an employer to maintain the designated
wage scale, it shall be unlawful to secretly pay a lower wage while purporting to
pay the wage designated by statute or by confract.
In relevant part. Labor Code § 512 states:
An employer may not employ an employee for a work period of more than five
hours per day without providing the employee with a meal period of not less than
30 minutes, except that if the total work peribd per day of the employee is no
more than six hours, the meal period may be waived by mutual consent of both
the employer and emplbyee. An employer may not employ an employee for a
work period of more than 10 hours per day without providing the employee with a
second meal period of not less than 30 minutes, except that if the total hours
worked is no more than 12 hours, the second meal period may be waived by
mutual consent of the employer and the employee only if thefirstmeal period was
not waived.
In relevant part. Section 11 of the Wage Order states.
(A) No employer shall employ any person for a work period of more thanfive(5)
hours without a meal period of not less than 30 minutes, except that when a work
period of not more than six (6) hours will complete the day's work the meal
period may be waived by mutual consent of the employer and the employee.
(B) An employer may not employ an employee for a work period of more than ten
(10) hours per day without providing the employee with a second meal period of
not less than 30 minutes, except that if the total hours worked is no more than 12
hours, the second meal period may be waived by mutual consent of the employer
and the employee only if thefirstmeal period was not waived.
(C) Unless the employee is relieved of all duty during a 30 minute meal period,
the meal period shall be considered an "on duty" meal period and counted as time
worked. An "on duty" meal period shall be permitted only when the nature of the
work prevents an employeefrombeing relieved of all duty and when by written
agreement between the parties an on-the-job paid meal period is agreed to. The
written agreement shall state that the employee may, in writing, revoke the
agreement at any time.
(D) If an employer fails to provide an employee a meal period in accordance with
the applicable provisions of this order, the employer shall pay the employee one
(1) hour ofpay at the employee's regular rate of compensation for each workday
that the meal period is npt provided.
Labor and Workforce Development Agency / Health Net, Inc.
May9,2017Page 13of 18
Labor Code § 226.7 states,
(a) No employer shall require any employee to work during any meal or rest
period mandated by an applicable order of the Industrial Welfare Commission.
(b) If an employer fails to provide an employee a meal period or rest period in
accordance with an applicable order of the Industrial Welfare Coriimission, the
employer shall pay the employee one additional hour of pay at the employee's
regular fate of compensation for each work day that the meal or rest period is not
provided.
The regular rate of pay under Caiifomia law includes "all remuneration for employment paid to,
on behalf of, the employee." O.L. 2002.06.14 (quoting 29 U.S.C. § 207(e)). This requirement
includes, but is not limited, to, commissions and non-discretionary bonuses. See, e.g.,
Huntington Memorial Hosp. v. Superior Court, 131 Cal.App.4th 893, 904-05 (2005).
In relevant part. Labor Code § 1198 states.
The employment of any employee... under conditions of labor prohibited by the
[Wage Order] is unlawful.
Health Net failed to pay premium wages to Arana and the aggrieved employees based on regular
rates of compensation correctly calculated to include all relevant remuneration, including, but not
limited to, non-discretionary bonuses. Instead, Health Net paid Arana and the aggrieved
employees premium wages based on their respective hourly rates of pay.
Accordingly, Arana now seeks civil penalties for these Labor Code violations that Health Net
has committed against him and aggrieved employees as follows:
1) For all initial violations of Labor Code Section 223 that are deemed to be neither willful
nor intentional, $100.00 for each aggrieved employee per pay period for each violation
(perialties set by Labor Code Section 225.5);
2) For all initial violations of Labor Cpde Section 223 that are deemed to be either willful or
intentional, $200.00 for each aggrieved employee, plus 25% of the amount unlawfully
withheldfromeach aggrieved employee, per pay period for each violation (penalties set
by Labor Code Section 225.5);
3) For all subsequent violations of Labor Code Section 223, regardless of whether the initial
violation of Labor Code Section 223 is deemed to be either willful or intentional, $200.00
for each aggrieved employee, plus 25% ofthe amount unlawfully withheldfromeach
aggrieved employee, per pay period for each violation (penalties set by Labor Code
Section 225.5);
Labor and Workforce Development Agency / Health Net, Inc.
May9,2017Page 14of 18
4) For all initial violations of Labor Code Section 226.7, $ 100.00 for each aggrieved
employee per pay period for each violation (penahies set by Labor Code Section
2699(f)(2));
5) For all subsequent violations of Labor Code Section 226.7, $200.00 for each aggrieved
employee per pay period for each violation (penalties set by Labor Code Section
2699(f)(2));
6) For all initial violations of Labor Code Section 512, $50.00 for each aggrieved employee
per pay period for each violation (penalties set by Labor Code Section 558(a)(l)-(2));
7) For all subsequent violations of Labor Code Section 512, $100.00 for each aggrieved
employee per pay period for each violation (penalties set by Section 558(a)(l)-(2));
8) For all initial violations of Labor Code Section 1198, $100.00 for each aggrieved
employee per pay period for each violation (penalties set by Labor Code Section
2699(f)(2)); and
9) For all subsequent violations of Labor Code Section 1198, $200.00 for each aggi ieved
employee per pay period for each violation (penalties set by Labor Code Section
2699(f)(2)).
FAILURE TO PROVIDE ACCURATE WRITTEN W A G E STATEMENTS
Labor Code § 226(a) requires an employer to provide an employee, either semimonthly or at the
time of each wage payment, with an accurate and itemized written wage statement that shpws:
1. Gross wages eamed;
i. Not paid for all OT hours and hours worked , accordingly gross wages were
not provided
ii. All applicable meal/rest break premiums not paid and so gross wages eamed
not accurate
iii. Time was rounded in unfair and unneufral manner therefore gross wages not
accurate
2. Total hours worked by the employee, except for any employee whose
compensation is solely based on a salary and who is exempt from payment of
overtime under subdivision (a) of Section 515 or any applicable order of the
Industrial Welfare Commission;
i. Total hours worked failed to reflect all hourly and overtime hours worked
ii. Time was rpunded in unfair and xmneutral manner therefore total hours
worked not reflected
Labor and Workforce Develbpment Agency / Health Net, Inc.
May9,2017Page 15of 18
3. The number of piece rate units eamed and any applicable piece rate if the
employee is paid on a piece-rate basis;
4. All deductions, provided that all deductions made bn wriften orders of the
employee may be aggregated and shown as one item;
5. Net wages eamed,
i. Not paid for all hourly and overtime hours worked, accordingly net wages
were incorrect.
ii. Time was rounded in unfair and unneufral manner therefore net wages not
accurately reflected
iii. Applicable meal and rest break premiums not paid therefore net wages not
accurately reflected
6. The inclusive dates of the period for which the employee is paid,
7. The name of the employee and his or her social security number, except that by
January 1, 2008, only the last four digits of his or her social security number or an
employee identification niumber other than a social security number may be
shown on the itemized statement;
8. The name and address of the legal entity that is the employer, and
9. All applicable hourly rates in effect during the pay period and the corresponding
number of hours worked at each hourly rate by the employee.
i. correspondingnumberofhours worked incorrect
ii. corresponding number of overtime hours worked incorrect.
By failing to accurately record all hours worked, including the "off-the-clock" work described
above, by failing to pay employees meal and rest period premiums in accordance with Caiifomia
law. Health Net has failed to provide Arana and the aggrieved employees with written wage
statements that comply with the requirements of Labor Code § 226(a). The wage statements of
Arana and the aggrieved employees have not accurately reflected their applicable rates of pay,
hours worked, and the amounts of their net and gross wages.
Accordingly, Arana now seeks civil penalties for Health Net's violations of Labor Code §
226(a) as follpws:
1. For all violations of Labor Code § 226(a) if a civil actionfiledin accordance with the
procedures set forth in Labor Code § 2699.3 results in an initial citation or its equivalent,
$250.00 for each employee for each violation (Labor Code § 226.3); or
Labor and Workforce Development Agency / Health Net, Inc.
May9,2017Page 16of 18
2. For all violations of Labor Code § 226(a) if a civil actionfiledin accordance with the
procedures set forth in Labor Code § 2699.3 results in a subsequent citation or its
equivalent, $1000.00 for each employee for each violation (Labor Code § 226.3).
LATE OR INCOMPLETE FINAL WAGES FOLLOWING SEPARATION OF EMPLOYMENT
Labor Code § 201 requires an employer to pay all eamed and unpaid wages to a discharged
employee immediately at the time of discharge.
Labor Code § 202 requires an employer to pay all eamed and unpaid \yages to an employee who
quits after giving at least 72 hours-notice all eamed and unpaid wages at the time of quitting.
Labor Code § 202 requires an erriployer to pay all eamed and unpaid wages to an employee who
quits after less than 72 hours-notice all eamed and unpaid wages within 72 hours of giving notice
of quitting. '
Labor Code § 203 provides that an employee's wages shall continue as a penaltyfromwhen they
first became due at the same rate until paid for up to 30 days when an employer willfully fails to
timely pay all eamed and unpaid wages in accordance with Labor Code section 201 or 202.
By failing to timely fumish Arana and aggrieved employees with anyfinalpaycheck and/or with
final paychecks that include all eamed and unpaid wages, including, but not necessarily limited
to, all eamed and unpaid hourly, overtime, and/or premium wages. Health Net has violated Labor
Code §§ 201 and 202.
Accordingly, Arana now seeks civil penalties for Health Net's violations of Labor Code §§ 201,
202, and 203 as follows:
1. For all initial violations of Labor Code §§ 201,202, and 203, $ 100.00 for each aggrieved
employee per pay period for each violation (Labor Code § 2699(f)(2)); arid
2. For all subsequent violations of Labor Code §§ 201, 202, and 203, $200.00 for each
aggrieved employee per pay period for each violation (Labor Code § 2699(f)(2)).
Under Caiifomia Labor Code § 256, the Labor Commissioner shall impose a civil penalty in an
amount not exceeding 30 days' pay as waiting time under the terms of Section 203. Health Net
willfully failed to timely fumish Arana and aggrieved employees with anyfinalpaycheck timely,
and/or withfinalpaychecks that include all eamed and unpaid wages, iricluding, but not
necessarily limited to, all eamed and unpaid hourly, overtime, and/or premium wages. Health
Net has violated Labor Code §§ 201 202, and 203. Accordingly, the aggrieved employees seek
to recover the wages and penalties of Section 256 on behalf of himself and other aggrieved
employees. Cal. Lab. Code §§ 2699,2699.3, and 2699.5.
J
Labor and Workforce Development Agency / Health Net, Inc.
May9,2017Page 17of 18 ,
Arana is an individual who was employed by Health Net in an hourly position within the past
year. At all relevant times. Health Net employed persons, conducted business in, and engaged in
illegal labor and payroll practices and policies in Caiifomia.
VIOLATIONS OF LABOR CODE S5S8
Arana is an individual who was employed by Health Net in an hourly position, during all
relevant times. At all relevant times. Health Net jointly employed persons, conducted business
in, and engaged in illegal labor and payroll practices and policies in Caiifomia.
Under Caiifomia Labor Code § 558, any person acting on behalf of an employer who violates or
causes to be violated a provision of the Labor Code regulating hours and days of work in any
order of the Industrial Welfare Commission shall be subject to civil penalties and be ordered to
pay all unpaid wages. Health Net failed to provide the aggrieved employees meal and/or rest
breaks, minimum and overtime wages, and other wage violations. Accordingly, the aggrieved
employees seek to recover the wages and penalties of Section 558 on behalf of herself and other
aggrieved employees. Cal. Lab. Code §§ 2699, 2699.3, and 2699.5.
VIOLATIONS OF LABOR CODE $1199
Labor Code § 1199 states:
Every employer or other person acting either individually or as an officer, agent, or employee of
another person is guilty bf a misdemeanor and is punishable by afineof not less than one
hundred dollars ($100) or by imprisonment for not less than 30 days, or by both, who does any of
the following:
(a) Requires or causes any employee to work for longer hours than
thosefixed,or under conditions of labor prohibited by an order of
the comniission.
(b) Pays or causes to be paid to any employee a wage less than the
minimumfixedby an order of the commission.
(c) Violates or refuses or neglects to comply with any provision
of this chapter or any order or ruling of the commission.
By failing to timely fumish Arana and aggrieved employees with unpaid wages, including, but
not necessarily limited to, all eamed and unpaid hourly, overtime, and vacation wages and/or
premiurii wages at the regular rate of pay. Health Net's criminal conduct has violated Labor
Code §1199.
Labor and Workforce Development Agency / Health Net, Inc.
May9,2017Page 18of 18
1. For all initial violations of Labor Code § 1199 canfindan employer liable for a misdemeanor
and is punishable by afineof $100.00 or by imprisonment for not less than 30 days or by
both.(Labor Code § 1199)
VIOLATIONS OF LABOR CODE S256
Arana is an individual who was employed by Health Net in an hourly position within the past
year. At all relevant times, Health Net employed persons, conducted business in, and engaged in
illegal labor and payroll practices and policies in Caiifomia.
Under Caiifomia Labor Code § 256, the Labor Commissioner shall impose a civil penalty in an
amount not exceeding 30 days' pay as waiting time under the terms of Section 203. Health Net
willfully failed to timely fumish Arana and aggrieved employees with anyfinalpaycheck timely,
and/or with final paychecks that include all eamed and unpaid wages, including, but not
necessarily limited to, all eamed and unpaid hourly, overtime, vacation, and/or premium wages,
and/pr vacation pay. Health Net has violated Labor Code §§201 202, and 203. Accordingly, the
aggrieved employees seek to recover the wages and penalties of Section 256 on behalf of herself
and other aggrieved employees. Cal. Lab. Code §§ 2699,2699.3, and 2699.5.
CONCLUSION
As noted above, this letter constitutes the required notice under the Labor Code Private
Attomeys General Act of 2004. Insofar as this letter is directed toward Health Net, please be
advised that Arana will seek both reasonable attomeys' fees and costs under Labor Code §
2699(g)(1) in a civil action should the LWDA decline to pursue this matter.
Sincerely,
Shaun Setareh, Esq.