UC regents exempt from certain wage and benefits regulations

Do California's minimum wage laws apply only to some California workers? That is what a recent California appellate court held in a lawsuit by a former employee filed against her former employer, the Regents of the University of California. In a landmark case, the California Court of Appeal, Fourth Appellate District, held the regents aren't subject to California's minimum wage laws and are statutorily exempt from Private Attorneys General Act of 2004 (PAGA) claims, unless otherwise specified.

Employee pay issues

Guivini Gomez worked for the regents as an hourly nonexempt employee. During her employment, the regents used company policy and practice to pay employees, including (1) rounding the actual time worked (usually down) and (2) automatically deducting a 30-minute meal period regardless of whether the employee was actually offered or took a meal period.

Gomez sued, claiming the regents failed to pay her the required minimum wage for all hours she worked. Notably, she didn't allege the regents actually set her hourly wage below the minimum rate. Rather, she claimed their pay practice resulted in her not receiving the minimum wage for all hours she actually worked. She also sought penalties under the PAGA on behalf of herself and other purportedly aggrieved employees. Needless to say, the regents disagreed.

The regents asked the trial court to dismiss Gomez's claims because the minimum wage laws didn't apply to them and Gomez wasn't entitled to penalties under the PAGA. The trial court agreed and threw out Gomez's case entirely. She appealed.