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30
1 n K*
TIMOTHY J. LONG (STATE BAR NO. 137591)
tilona(a),orrick.com Siusserior u o u n u f usiiforitJia.
. .-.«.
2 NICHOLAS J. HORTON (STATE BAR NO. 289417)
nhorton(a),orrick.com J JI f JI n . a m m J n .
S It t SI£19 I a
3 ORRICK, HERRINGTON & SUTCLIFFE LLP
400 Capitol Mall, Suite 3000
4 Sacramento, CA 95814-4497 CSV . LsBrislirw
Telephone: +1916 447 9200
5 Facsimile: +1916 329 4900 x^iiaa tiuiiikitst .
^afr-^JJi a S •=II1LE.£; g o^oaiB
6 Attorneys 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-
i i of herself and on behalf of all persons similarly CU-OE-GDS
situated,
12 Plaintiff, DEFENDANT HEALTH NET OF
CALIFORNIA, INC.'S NOTICE OF
13 V. RENEWED MOTION AND RENEWED
MOTION FOR SUMMARY
14 HEALTH NET OF CALIFORNIA, INC., a ADJUDICATION
California Corporation; and Does 1 through 50,
15 inclusive, Date: February 4, 2019
Time: 9:00 a.m.
16 Defendants. Dept.: 54
Reservation No.: 2380178
17
Complaint Filed: April 5, 2017
18 FACFiled: June 29, 2017
Consolidated Complaint Filed: Dec. 21, 2017
19 TOMAS R. ARANA, on behalf of himself, all
Complaint Filed: August I , 2017
others similarly situated.
20
Plaintiff,
21
V.
22
HEALTH NET OF CALIFORNIA, INC., a
23 California corporation; and DOES 1-50,
inclusive.
24
Defendant.
25
26
27
28
DEFENDANT OF HEALTH NET OF CALIFORNIA, INC 'S NOTICE OF RENEWED MOTION AND RENEWED MOTION FOR
SUMMARY ADJUDICATION
1 TO PLAINTIFFS AND THEIR COUNSEL OF RECORD:
2 PLEASE TAKE NOTICE that on February 4, 2019 at 9:00 a.m. or soon thereafter as may
3 be heard in Department 54 of the Superior Court ofthe State of California, County of Sacramento,
4 Defendant Health Net of California, Inc. ("HNCA") will and hereby does move the Court, pursuant
5 to California Code of Civil Procedure sections 437c and 1008(b), for an order entering summary
6 adjudication in its favor on certain of Plaintiffs' claims alleged in the Third and Seventh Causes of
7 Action against HNCA.
8 HNCA moves for summary adjudication on the following grounds, as more fully set forth
9 in the accompanying memorandum of points and authorities in support of the motion:
10 The Third Cause of Action for Failure to Pay Hourly and Overtime Wages:
I 1 Plaintiffs' Failure to Pay Overtime Wages claim premised on HNCA's alleged failure to
12 include cash benefits received pursuant to a bona fide benefits Plan in Plaintiff Spears' regular rate
13 of pay fails because cash benefits were properly excluded from her regular rate calculation under
14 the Benefit-Plan Contributions Exception and Plaintiff Arana never received the cash benefit.
15 Plaintiffs' Failure to Pay Overtime Wages claim premised on HNCA's alleged failure to
16 include SPOT payments in the regular rate of pay fails because SPOT payments were properly
17 accounted for in the regular rate calculation.
18 Plaintiffs' Failure to Pay Overtime Wages claim premised on HNCA's alleged failure to
19 include ACA Incentive Plan payments in the regular rate of pay fails because those payments were
20 properly accounted for in the regular rate calculation.
21 Plaintiffs' Failure to Pay Overtime Wages claim premised on HNCA's alleged failure to
22 include Wellness Incentive payments in the regular rate of pay fails because those payments are
23 not bonuses and were properly excluded from the regular rate.
24 The Seventh Cause of Action for Civil Penalties Pursuant to Labor Code §§ 2698, et seq.
25 (PAGA):
26 Plaintiffs' PAGA claim based on alleged failure to pay overtime wages as a result of alleged
27 failure to include cash benefits received by Plaintiff Spears' in her regular rate of pay fails because
28 the underlying alleged Labor Code violation did not occur.
DEFENDANT OF HEALTH NET OF CALIFORNIA. INC S NOTICE OF RENEWED MOTION AND RENEWED MOTION FOR
SUMMARY ADJUDICATION
Plaintiffs" PAGA claim based on alleged failure to pay overtime wages as alleged failure to
2 include SPOT cash awards awarded to Plaintiff Arana in the regular rate of pay calculation fails
3 because the underlying alleged Labor Code violation did not occur.
4 Plaintiffs' PAGA claim based on alleged failure to pay overtime wages as alleged failure to
5 include ACA Incentive Plan payments awarded to Plaintiff Arana in the regular rate of pay
6 calculation fails because the underlying alleged Labor Code violation did not occur.
7 Plaintiffs' PAGA claim based on alleged failure to pay overtime wages as alleged failure to
include Wellness Incentive payments made to Plaintiff Arana in the regular rate of pay calculation
9 fails because the underlying alleged Labor Code violation did not occur.
10 The Motion for Summary Adjudication is based on this Notice of Motion and Motion; the
accompanying Memorandum ofPoints and Authorities in Support of the Motion, HNCA's Separate
12 Statement of Undisputed Material Facts, the Evidence in Support of HNCA's Motion for Summary
13 Adjudication, including the declarations contained therein, as well as the pleadings, records and
14 files in this case, and upon such other, further oral and documentary evidence that may be presented
15 at or before hearing on this matter.
16 Pursuant to Local Rule 1.06 (A), the court will make a tentative ruling on the
merits of this matter by 2:00 p.m., the court day before the hearing. The
17 complete text of the tentative rulings for the department may be downloaded
off the court's website. If the party does not have online access, they may call
^ the dedicated phone number for the department as referenced in the local
telephone directory between the hours of 2:00 p.m. and 4:00 p.m. on the court
'9 day before the hearing and receive the tentative ruling. If you do not call the
court and the opposing party by 4:00 p.m. the court day before the hearing,
20 no hearing will be held.
21
22 Dated: November 19, 2018 ORRICK, HERRINGTON & SUTCLIFFE LLP
23
24 By:
NICHOLAS J. HORTON
25 Attorneys for Defendant
HEALTH NET OF CALIFORNIA, INC.
26
27
28
-2-
DEFENDANT OF HEALTH NET OF CALIFORNIA. INC S NOTICE OF RENEWED MOTION AND RENEWED MOTION FOR
SUMMARY ADJUDICATION
03 CM .
ujvfc — Ct•^fr;^i's;^;•
'"•il.
Preview
30 1 n K* TIMOTHY J. LONG (STATE BAR NO. 137591) tilona(a),orrick.com Siusserior u o u n u f usiiforitJia. . .-.«. 2 NICHOLAS J. HORTON (STATE BAR NO. 289417) nhorton(a),orrick.com J JI f JI n . a m m J n . S It t SI£19 I a 3 ORRICK, HERRINGTON & SUTCLIFFE LLP 400 Capitol Mall, Suite 3000 4 Sacramento, CA 95814-4497 CSV . LsBrislirw Telephone: +1916 447 9200 5 Facsimile: +1916 329 4900 x^iiaa tiuiiikitst . ^afr-^JJi a S •=II1LE.£; g o^oaiB 6 Attorneys 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- i i of herself and on behalf of all persons similarly CU-OE-GDS situated, 12 Plaintiff, DEFENDANT HEALTH NET OF CALIFORNIA, INC.'S NOTICE OF 13 V. RENEWED MOTION AND RENEWED MOTION FOR SUMMARY 14 HEALTH NET OF CALIFORNIA, INC., a ADJUDICATION California Corporation; and Does 1 through 50, 15 inclusive, Date: February 4, 2019 Time: 9:00 a.m. 16 Defendants. Dept.: 54 Reservation No.: 2380178 17 Complaint Filed: April 5, 2017 18 FACFiled: June 29, 2017 Consolidated Complaint Filed: Dec. 21, 2017 19 TOMAS R. ARANA, on behalf of himself, all Complaint Filed: August I , 2017 others similarly situated. 20 Plaintiff, 21 V. 22 HEALTH NET OF CALIFORNIA, INC., a 23 California corporation; and DOES 1-50, inclusive. 24 Defendant. 25 26 27 28 DEFENDANT OF HEALTH NET OF CALIFORNIA, INC 'S NOTICE OF RENEWED MOTION AND RENEWED MOTION FOR SUMMARY ADJUDICATION 1 TO PLAINTIFFS AND THEIR COUNSEL OF RECORD: 2 PLEASE TAKE NOTICE that on February 4, 2019 at 9:00 a.m. or soon thereafter as may 3 be heard in Department 54 of the Superior Court ofthe State of California, County of Sacramento, 4 Defendant Health Net of California, Inc. ("HNCA") will and hereby does move the Court, pursuant 5 to California Code of Civil Procedure sections 437c and 1008(b), for an order entering summary 6 adjudication in its favor on certain of Plaintiffs' claims alleged in the Third and Seventh Causes of 7 Action against HNCA. 8 HNCA moves for summary adjudication on the following grounds, as more fully set forth 9 in the accompanying memorandum of points and authorities in support of the motion: 10 The Third Cause of Action for Failure to Pay Hourly and Overtime Wages: I 1 Plaintiffs' Failure to Pay Overtime Wages claim premised on HNCA's alleged failure to 12 include cash benefits received pursuant to a bona fide benefits Plan in Plaintiff Spears' regular rate 13 of pay fails because cash benefits were properly excluded from her regular rate calculation under 14 the Benefit-Plan Contributions Exception and Plaintiff Arana never received the cash benefit. 15 Plaintiffs' Failure to Pay Overtime Wages claim premised on HNCA's alleged failure to 16 include SPOT payments in the regular rate of pay fails because SPOT payments were properly 17 accounted for in the regular rate calculation. 18 Plaintiffs' Failure to Pay Overtime Wages claim premised on HNCA's alleged failure to 19 include ACA Incentive Plan payments in the regular rate of pay fails because those payments were 20 properly accounted for in the regular rate calculation. 21 Plaintiffs' Failure to Pay Overtime Wages claim premised on HNCA's alleged failure to 22 include Wellness Incentive payments in the regular rate of pay fails because those payments are 23 not bonuses and were properly excluded from the regular rate. 24 The Seventh Cause of Action for Civil Penalties Pursuant to Labor Code §§ 2698, et seq. 25 (PAGA): 26 Plaintiffs' PAGA claim based on alleged failure to pay overtime wages as a result of alleged 27 failure to include cash benefits received by Plaintiff Spears' in her regular rate of pay fails because 28 the underlying alleged Labor Code violation did not occur. DEFENDANT OF HEALTH NET OF CALIFORNIA. INC S NOTICE OF RENEWED MOTION AND RENEWED MOTION FOR SUMMARY ADJUDICATION Plaintiffs" PAGA claim based on alleged failure to pay overtime wages as alleged failure to 2 include SPOT cash awards awarded to Plaintiff Arana in the regular rate of pay calculation fails 3 because the underlying alleged Labor Code violation did not occur. 4 Plaintiffs' PAGA claim based on alleged failure to pay overtime wages as alleged failure to 5 include ACA Incentive Plan payments awarded to Plaintiff Arana in the regular rate of pay 6 calculation fails because the underlying alleged Labor Code violation did not occur. 7 Plaintiffs' PAGA claim based on alleged failure to pay overtime wages as alleged failure to include Wellness Incentive payments made to Plaintiff Arana in the regular rate of pay calculation 9 fails because the underlying alleged Labor Code violation did not occur. 10 The Motion for Summary Adjudication is based on this Notice of Motion and Motion; the accompanying Memorandum ofPoints and Authorities in Support of the Motion, HNCA's Separate 12 Statement of Undisputed Material Facts, the Evidence in Support of HNCA's Motion for Summary 13 Adjudication, including the declarations contained therein, as well as the pleadings, records and 14 files in this case, and upon such other, further oral and documentary evidence that may be presented 15 at or before hearing on this matter. 16 Pursuant to Local Rule 1.06 (A), the court will make a tentative ruling on the merits of this matter by 2:00 p.m., the court day before the hearing. The 17 complete text of the tentative rulings for the department may be downloaded off the court's website. If the party does not have online access, they may call ^ the dedicated phone number for the department as referenced in the local telephone directory between the hours of 2:00 p.m. and 4:00 p.m. on the court '9 day before the hearing and receive the tentative ruling. If you do not call the court and the opposing party by 4:00 p.m. the court day before the hearing, 20 no hearing will be held. 21 22 Dated: November 19, 2018 ORRICK, HERRINGTON & SUTCLIFFE LLP 23 24 By: NICHOLAS J. HORTON 25 Attorneys for Defendant HEALTH NET OF CALIFORNIA, INC. 26 27 28 -2- DEFENDANT OF HEALTH NET OF CALIFORNIA. INC S NOTICE OF RENEWED MOTION AND RENEWED MOTION FOR SUMMARY ADJUDICATION 03 CM . ujvfc — Ct•^fr;^i's;^;• '"•il.