Samuel

Plaintiffs Tiffany Sumuel and Rudy Halim, on behalf of a class of employees and former employees of ADVO, Inc. (ADVO), sued ADVO and one of its managers for unpaid overtime compensation and monetary penalties. On cross-motions for summary judgment or summary adjudication, the trial court granted summary judgment to ADVO. The issue raised by this appeal is whether ADVO’s paid disability leave policy and practices violated the “salary basis test” utilized under federal and state labor regulations to determine whether an employee is exempt from overtime pay requirements. We find no error in the trial court’s determination of this issue, and affirm the judgment in favor of ADVO.

I. BACKGROUND

A. Plaintiffs’ Fourth Amended Complaint

Plaintiffs’ fourth amended complaint alleges class claims against ADVO for (1) unpaid overtime compensation in violation of California Industrial Welfare Commission (IWC) wage order No. 4-2001 and California Labor Code sections 510, 1194, and 1198; (2) violation of Business and Professions Code section 17200, based on misclassifying class members as exempt from overtime; and (3) monetary penalties under Labor Code section 2699 based, among other…