Southern Glazer’s Wine and Spirits, LLC has agreed to pay $2.4 million to settle claims brought under California’s Private Attorneys General Act (PAGA), resolving allegations of widespread labor code violations affecting more than 2,400 employees, according to Matern Law Group.
The case, filed in December 2022 in Los Angeles County Superior Court, accused the company of failing to provide proper meal and rest breaks, underpaying wages including overtime and minimum wage, and issuing inaccurate wage statements. The violations were alleged to have occurred between Oct. 5, 2021, and April 30, 2024.
Roughly $397,000 of the settlement will be distributed to 2,434 non-exempt employees, while $1.19 million will go to the California Labor and Workforce Development Agency to support broader labor enforcement efforts, according to the law firm.
Holding employers accountable
The lawsuit was brought by plaintiff Noah Winn on behalf of similarly situated workers. He was represented by Matern Law Group, a Los Angeles-based employment law firm.
“We are proud to have achieved a settlement that not only compensates the affected employees but also sends a strong message about the importance of fair employment practices,” said Matthew J. Matern, the lead attorney on the case. “This case highlights the power of PAGA in holding employers accountable and ensuring that workers receive the rights and protections they deserve.”
PAGA allows employees to file lawsuits on behalf of the state to recover civil penalties for labor code violations. It has become an increasingly prominent enforcement mechanism in California, particularly for low-wage and hourly workers who might not otherwise pursue individual claims.
Broader implications for employers
The resolution serves as a warning to employers about the risks of noncompliance with state labor laws. PAGA claims can expose companies to substantial financial penalties, even in cases where individual wage underpayments are relatively small.
For HR professionals and employers, the case highlights the importance of reviewing wage and hour practices to ensure compliance with California’s strict labor standards. That includes maintaining accurate records, ensuring proper classification of workers, and closely adhering to rules governing breaks and overtime.
“This outcome not only compensates the aggrieved employees but also serves as a reminder to employers of the critical need to adhere to labor laws and protect workers’ rights,” the law firm said in a statement.
Enforcement period and scope
The settlement applies to employees who worked for Southern Glazer’s Wine and Spirits in California during a period of roughly two and a half years. All affected individuals were classified as non-exempt, meaning they were eligible for overtime pay and mandated breaks under state law.
The case alleged a pattern of systemic violations, though no admission of wrongdoing was included in the settlement. The agreement was reached without the need for a trial.
Matern Law Group, which has a history of litigating employment cases across California, described the resolution as a testament to both the courage of the workers who came forward and the firm’s commitment to advocating for employee rights.
The firm said it remains focused on pursuing justice for workers and ensuring employers are held to account when they violate the state’s labor code.
