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Riverside County Employment Lawyers > Blog > Employment Lawyer For Employers > Liberty Reserve Mortgage Faces Proposed Class Action Wage and Hour Law

Liberty Reserve Mortgage Faces Proposed Class Action Wage and Hour Law


As reported by HousingWire, Liberty Reverse Mortgage—a financial services company with a main office in Rancho Cordova, California—is facing a proposed class action wage and hour lawsuit from a group of employees. The workers contend that the company violated state regulations regarding meal breaks, rest breaks, and off-the-clock work. Here, our California wage and hour attorney for employers discusses the allegations and highlights a lesson for employers.

The Allegations: Wage and Hour Violations 

Liberty Reverse Mortgage is facing a proposed class action lawsuit for alleged violations of California labor laws. Michaela LaNere, a former worker, filed a lawsuit in the Sacramento County Superior Court alleging the company violated rest break requirements and meal break requirements and failed to properly compensate hourly employees for off-the-clock work. As part of the wage and hour lawsuit, the claimants are seeking compensation for back pay and other damages.

 An Overview of Wage and Hour Regulations in California

California has among the most strict and comprehensive wage and hour laws in the entire country. Beyond the state-level minimum wage regulations and the overtime requirements of the federal Fair Labor Standards Act (FLSA), employers in California should be aware of the following three wage and hour laws:

  • Rest Breaks: California law mandates that employers provide a paid 10-minute rest break for every four hours worked—or major fraction thereof. If an employee works over two hours but less than six, they are entitled to one rest break. If they work over six hours, they are entitled to two real breaks. These breaks must be uninterrupted.
  • Meal Breaks: Employers are required to offer a 30-minute unpaid meal break to employees who work more than five hours in a day. If an employee works over 10 hours, they are entitled to a second meal break. Meals breaks are unpaid—but an employee must clock out and cannot work.
  • Off-the-Clock Work: California strictly prohibits employers from expecting employees to perform any work-related tasks without compensation—including for preparatory and concluding activities that are integral to the ’employee’s primary work duties. Employers must accurately record all hours worked and compensate employees accordingly.

 A Lesson for Employees: Carefully Track Time of Hourly Employees 

For employers that have hourly employees, it is crucial to meticulously track work hours to ensure compliance with wage and hour regulations. Among other things, this includes accurately recording all time worked, providing mandated rest and meal breaks, and compensating employees for any off-the-clock tasks. Employers who fail to adhere to these guidelines expose themselves to legal disputes and financial liability.

Contact Our California Wage and Hour Lawyer for Employers Today

At the Law Office of Karen J. Sloat, APC, our California employment lawyer has extensive experience handling wage and hour cases. If you have any specific questions or concerns about an employment law matter, we are here to help. Contact us today for a confidential case assessment. Our firm works with employers in the Coachella Valley, Riverside County, and throughout California.



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