HR Management & Compliance

Court Bars Retaliation Against Employee with Mistaken Overtime Claim

You know you can’t retaliate against an employee who has a valid wage claim. But what about an employee who mistakenly thinks he has a wage claim?


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Manuel Barbosa worked as a carburetor assembly supervisor for IMPCO Technologies in Santa Ana. Based on comments from his subordinates, Barbosa reported to the company’s payroll department that he and his crew were each missing two hours of overtime pay. Barbosa said he thought it might be a time-clock error. Without investigating the matter, Barbosa’s manager approved paying Barbosa and his crew the two hours of overtime in the next pay period.

Later, the company’s HR director compared the time clock entries with the company’s security gate swipe records, and determined that Barbosa’s crew could not have worked the claimed overtime. Barbosa was notified that no additional overtime was owed. Barbosa then offered to repay the two hours of overtime he’d been paid. Instead of accepting the repayment, the company fired him.

Barbosa sued for wrongful termination in violation of public policy, on the basis that he’d made a good faith wage complaint, even if ultimately his claim was in error, and that the company could not retaliate against him for it. The trial court dismissed his lawsuit.

The Court of Appeals reversed, however, holding that under longstanding California public policy, employees must feel free to question their pay without fear of retaliation, even if the employee’s concern is ultimately unwarranted.

We’ll have more on this case, and on establishing a wage complaint protocol, in an upcoming issue of
California Employer Advisor.

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