Virginia Velazquez v. Costco Wholesale

MEMORANDUM

Costco appeals the district court’s judgment (1) awarding plaintiffs Virginia Velazquez and Steven Berry unpaid overtime wages as well as interest, costs, and fees under Sections 510 and 1194 of the California Labor Code and Sections 17200 through 17210 of the California Business and Professions Code, and (2) ordering Costco to pay a continuing-wages penalty under Sections 202 and 203 of the California Labor Code. Because the district court applied the correct legal standard and did not clearly err when it concluded Costco failed to prove Velazquez and Berry spent more than half of their time on managerial duties, we affirm the portion of the judgment awarding plaintiffs unpaid overtime. We reverse the portion of the district court’s judgment ordering Costco to pay Berry $14,520 in continuing wages because there is no evidence suggesting Costco willfully failed to pay Berry’s unpaid overtime upon his termination.

1. The application of California overtime exemptions presents “a mixed question of law and fact.” Sav-on Drug Stores, Inc. v. Super. Court, 34 Cal.4th 319 , 17 Cal.Rptr.3d 906 , 96 P.3d 194, 20 (2004). “How [an employee] spent his [or her] working time is a…