Antitrust Law Daily Wrap Up, STATE UNFAIR TRADE PRACTICES—E.D. Cal.: Seasonal farm workers’ unfair practices claims proceed against farm, (Apr 15, 2014)

By Linda O’Brien, J.D., LL.M.

Seasonal agricultural workers alleged sufficient facts to pursue claims against an agricultural grower and shipper for engaging in unfair or deceptive labor practices by underpaying workers and failing to provide rest breaks in violation of California’s Unfair Competition Law and Migrant Seasonal Agricultural Worker Protection Act, the federal district court in Fresno, California has decided (Amaro v. Gerawan Farming, Inc., April 11, 2014, Boone, S.).

Gerawan Farming, Inc. is in the business of growing and shipping table grapes and other agricultural products. Gerawan hires numerous seasonal workers for its agricultural operations and enters into oral agreements with the workers regarding an hourly rate for certain services and a piece rate based on production for other services. Rafael Amaro and Jesus Urzua, seasonal field workers for Gerawan, filed a class action suit alleging that Gerawan engaged in unlawful and unfair business practices by failing to pay minimum wages, overtime, and compensate for rest breaks in violation of California’s Unfair Competition Law (UCL), Labor Law, and the Migrant Seasonal Agricultural Worker Protection Act (AWPA). Gerawan moved to dismiss the complaint.

The court determined that the workers stated claims with sufficient particularity under the UCL. The UCL prohibits any unlawful, unfair, or fraudulent business act or practice. The workers alleged that they entered into contracts to perform work by the hour and/or by the piece. Their contention that Gerawan failed to comply with the terms of the contracts by failing to (1) post notice setting forth the rights of the AWPA, (2) meet the minimum wage requirement, and (3) pay overtime was sufficient to state a cognizable claim under the AWPA and the California Labor Code. Also, the workers’ allegations that they were not provided with required rest breaks or paid wages promptly when discharged were sufficient to state a claim in violation of the state labor law, according to the court.

Moreover, the workers contended that they suffered an injury as they did not receive all wages due from Gerawan. Since their allegations were sufficient to state a claim for violations of the AWPA and state labor law, they were sufficient to state a claim for a violation of the UCL, the court concluded.

The case is No. 1:14-cv-00147-AWI-SAB.

Attorneys: Eric Bryce Kingsley (Kingsley & Kingsley APC) for Rafael Marquez Amaro. Ronald H. Barsamian (Barsamian & Moody) for Gerawan Farming, Inc. Ronald H. Barsamian (Barsamian & Moody) for Gerawan Farming Partners, Inc.

Companies: Gerawan Farming, Inc.; Gerawan Farming Partners, Inc.

Cases: StateUnfairTradePractices CaliforniaNews