No special deliveries! Mandatory fee-shifting is limited to what is reasonable

Litigation, even of the smallest employment claims, is costly. Fee-shifting statutes minimize the risk for attorneys to represent employees in filing wage and hour suits against employers. A recent decision recognized the potential for abuse of these statutes and, while affirming that the fee shifting is mandatory when an employee prevails, only recovery of reasonable fees and costs are available to counsel.

Trial court strikes inflated request for attorneys’ fees and costs

Elinton Gramajo worked as a pizza delivery driver for Joe’s Pizza on Sunset for just under two years, ending his employment in 2015. In 2018, he filed suit against his former employer, claiming failure to pay minimum and overtime wages, failure to provide meal and rest periods, failure to reimburse business expenses, waiting time penalties, and unfair business practices.

After almost four years of litigation, the case proceeded to trial in 2021. Gramajo’s monetary claim at trial was for $26,159.33, just over the then “limited civil case jurisdictional” amount. (This “limited” designation is for small cases and uses streamlined practices for efficiency.)

During the extensive litigation, Gramajo’s attorney propounded 15 sets of written discovery and noticed 15 depositions. However, at the end of the trial, a jury awarded him a total of only $7,659.63 in unpaid wages, statutory interest, waiting time penalties, and liquidated damages. Under Labor Code § 1194(a), he requested attorneys’ fees totaling $296,920 and $26,932.84 in costs. Joe’s Pizza opposed the request and asked the court to deny his costs in their entirety.