News / California staff launch class action against Ceva over 'breaches of Labor Code'

© Mohamad Faizni Faiz

Ceva companies in the US, including its freight and contract logistics units, are facing a class action lawsuit over pay and conditions.

Staff are claiming numerous breaches of Californian labour laws between March 2020 and March 2024.

The lawsuit claims staff did not receive overtime wages, minimum wage, rest periods, meal breaks and interest on deposits; but did receive waiting time penalties, wage statement violations, and delayed payments.

They also claim the Ceva companies violated the US Labor Code and “enjoyed unfair competition”.

The case, filed last week, indicates that more than 100 employees – and potentially up to 900 – are likely to join the class action, with the claim expected to be more than $5m, before costs and interest.

Staff claim that those working more than eight hours a day, more than 40 hours a week and seven consecutive days were not properly compensated.

The minimum amounts claimed so far are for:

• unpaid overtime wages, $1,150,530.18;
• missed meal periods, $1,534,040.24;
• missed rest periods, $1,534,040.24;
• waiting time penalties, $1,817,042.40; and
• wage statement penalties, $196,000.00.

The lawsuit names Keith Hitchcock, SVP and head of strategic account management, North America, as a specific defendant.

However Ceva, in its rebuttal of the claims, noted: “Keith Hitchcock … was not the employer of any putative class member, cannot be held liable for Labor Code violations and therefore did not cause any alleged Labor Code violations, as he has no duties under the Labor Code as to putative class members.”

It also said that, while it was continuing to conduct an investigation and discovery, at this stage it did not agree with the claims and has asked the court to dismiss the complaints and award the company costs.