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Cinemark Employee Pay Stub Class Action Certified

Aug. 20, 2018, 6:20 PM

Cinemark faces a class of movie theater employees who say the company didn’t comply with a state law that requires pay stubs to spell out overtime pay rates.

There are at least 843 employees in California who are eligible to join the lawsuit, lawyers for the workers who filed the lawsuit estimated based on Cinemark’s disclosures about the number of incorrect statements it issued.

A federal judge certified the class Aug. 16. Certification means Cinemark USA Inc. has to provide names and contact information for employees who may have received a noncompliant pay stub. Class members who don’t op out will share in a payout that may result from a settlement or trial win.

The purpose of the pay stub requirement is to help employees ensure they’re receiving the right pay rate for their work hours. Federal law doesn’t require extensive pay stub disclosures the way the California labor code does.

Pay stub violations can be costly. The California law allows a $50 penalty per employee for the first violation and $100 for subsequent violations. With 26 pay periods in a year for employers that pay wages biweekly, penalties can add up.

The case is Amey v. Cinemark USA Inc., 2018 BL 296573, N.D. Cal., No. 13-cv-05669, class certified 8/16/18.

To contact the reporter on this story: Jon Steingart in Washington at jsteingart@bloomberglaw.com

To contact the editor responsible for this story: Terence Hyland at thyland@bloomberglaw.com