Mamika

The case involves the proper method of calculating “waiting time” penalties under Labor Code section 203 (further section references are to the Labor Code unless otherwise designated).

Plaintiff Paul J. Mamika quit his job with United Vintners, U.S.A. Trust represented by trustee, Gino Barca, because defendant failed to pay his wages. The trial court awarded plaintiff his unpaid wages of $38,500, plus interest, and a penalty of $5,000 pursuant to section 203. On appeal, plaintiff contends this penalty was improperly computed. We agree and modify the judgment to reflect a penalty of $6,923.10.

Factual and Procedural Background

Defendant hired plaintiff as its general manager, and plaintiff began work on June 1, 1995. The parties agreed that plaintiff would be paid an annual salary of $60,000.

Defendant paid plaintiff only sporadically, and at less than the agreed-upon rate. Plaintiff notified defendant that he would resign from his job if the overdue wages were not paid. Defendant did not make any further payments, and plaintiff made good on his promise by resigning on April 1, 1996. During his 10 months of employment, plaintiff received wages of only…