Commonwealth Financial Network overestimated the penalties a former employee could potentially accrue with her claim under California’s Private Attorneys General Act when it removed the suit to federal court, a state appeals court said.
Marissa Garcia sued the broker-dealer in San Diego Superior Court, alleging it failed to pay her and others the correct amounts of sick pay and overtime wages, among other labor code violations. She sought a 25% share of civil penalties under PAGA, which allows aggrieved employees to recover through civil action for any provision of the labor code that allows state agencies to assert penalties. Employees...