Employer-Employee Relationship Required to Allege a Labor Code Wage Dispute

  • Dedication & Experience

    Representing clients in Southern California since 1925!

    What We Do
  • SoCal Blog: Stay Informed

    Read about developments in the law & how they may affect you.

    Recent News
  • Proven Track Record

    View the recent verdicts & settlements we've won.

    Our Results
  • Take the First Step Now

    Get help now! Use our quick contact form to email us.

    Free Case Review

Employer-Employee Relationship Required to Allege a Labor Code Wage Dispute

On May 8th, 2012, in Aleksick v. 7-Eleven Inc., (California Courts of Appeal – 4th District, No. D059236), the court found that an employer-employee relationship is a requisite element in maintaining an unfair competition claim for a Labor Code wage dispute.

In Aleksick, a class action suit was filed in response to 7-Eleven's practice of truncating a decimal point when determining pay for hours worked. This suit was alleged on behalf of hourly employees (as opposed to salaried) of a 7-Eleven franchise. The plaintiffs believed that the truncation of a decimal point resulted in a wage discrepancy. The plaintiffs alleged that this practice was in direct violation of the Labor Code wage statutes.

The court held that the nature of the business was critical in determining whether the plaintiffs could sue 7-Eleven Inc. Because employees were working for a franchise, franchise owners were designated as independent contracts. The court determined that this meant that 7-Eleven could not be sued for an Unfair Competition Law claim.

The Unfair Competition Law prohibits "unlawful, unfair, or fraudulent" business practices. However, in order to maintain this type of action, there must be an employer-employee relationship. Due to the evolution of case law, the law stands that payroll companies do not have control over employee wages, which means that they cannot be liable under the Labor Code wage statutes. As a result, the court found that the plaintiffs lacked the requisite relationship to allege a Labor Code dispute.

If you are experiencing a wage or hour dispute with your employer, please do not hesitate to contact a Southern California Employment Lawyer today.

The information on this website is for general information purposes only. Nothing on this site should be taken as legal advice for any individual case or situation. This information is not intended to create, and receipt or viewing does not constitute, an attorney-client relationship.

  • Dedication & Experience

    Representing clients in Southern California since 1925!

    What We Do
  • SoCal Blog: Stay Informed

    Read about developments in the law & how they may affect you.

    Recent News
  • Proven Track Record

    View the recent verdicts & settlements we've won.

    Our Results
  • Take the First Step Now

    Get help now! Use our quick contact form to email us.

    Free Case Review
Spray, Gould & Bowers LLP - Orange County Lawyers
Located at 2 Corporate Park, Suite 201
Irvine, CA 92606.
View Map
Phone: (888) 427-8064
Website:
© 2017 All Rights Reserved.

Southern California's Law Firm

Since 1925

Contact our office to recieve a FREE case evaluation.

Call Now 888.427.8064
Internet Marketing Experts The information on this website is for general information purposes only. Nothing on this site should be taken as legal advice for any individual case or situation. This information is not intended to create, and receipt or viewing does not constitute, an attorney-client relationship.