Cases & Deals

Global payroll company obtains California Court of Appeal decision affirming dismissal of class action lawsuit

Clients Global payroll company

The California Court of Appeal affirmed dismissal secured by Jones Day of all claims against a global payroll company by one of its clients relating to time rounding issues. The global payroll company was sued in 2014 by its client. The client was earlier sued in a wage and hour class action filed on behalf of its current and former employees for failure to pay all wages due caused by a quarter hour rounding practice. The client settled the class action and pursued the global payroll company for the cost of the settlement and attorneys' fees based on breach of contract, negligence and indemnity theories. Jones Day filed a motion for summary judgment, and after 2.5 hours of oral argument, the judge granted our motion and dismissed the claims with prejudice. The client appealed and the California Court of Appeal affirmed the dismissal of all claims on summary judgment in favor of the global payroll company.