Case Background
Oscar Armando Maravilla, a driver who worked for East Bay Logistics, Inc. in Alameda County, California, filed a class action lawsuit against the company in the Superior Court of California, County of Alameda, on July 6, 2022. The case number was 22CV013883. Maravilla worked for East Bay Logistics from approximately November 2019 to December 2021, and he brought the lawsuit on behalf of himself and all other current and former hourly, non-exempt employees of the company in California.
East Bay Logistics, Inc. was a California corporation with its principal place of business in Alameda, California. The company operated across multiple counties in California and classified Maravilla and the proposed class members as non-exempt from California's overtime requirements, paying them on an hourly basis.
Cause
Maravilla alleged that East Bay Logistics maintained a systematic, company-wide policy of violating California labor laws throughout the period he worked there. He claimed the company failed to pay employees for all hours worked, denied them proper meal and rest periods, failed to reimburse necessary business expenses, did not timely pay final wages upon termination, and issued inaccurate wage statements. Maravilla filed the First Amended Complaint on September 7, 2022, after which East Bay Logistics filed its answer on October 11, 2022.
Injury
Maravilla alleged that he and other class members suffered financial harm because the company used a time-rounding system that consistently underpaid workers. He claimed the company shaved time off employee records, required workers to input scheduled rather than actual hours into their timesheets before February 2021, and sometimes altered employee time records entirely. Maravilla and others also worked off the clock without compensation, including using their personal cell phones for work purposes. Some employees worked more than 12 hours in a single day without receiving double-time pay. Additionally, employees were required to use their personal vehicles and phones for work without any reimbursement.
Damages Sought
Maravilla sought unpaid minimum wages and overtime compensation, meal period and rest period premium wages, reimbursement of necessary business expenses, waiting time penalties under California Labor Code Section 203, penalties and actual damages for inaccurate wage statements, and restitution under California's Unfair Competition Law. He also sought liquidated damages for minimum wage violations, pre-judgment interest, injunctive relief, and attorneys' fees and costs.
Key Arguments and Proceedings
Legal Representation
Plaintiff: Oscar Armando Maravilla, individually and on behalf of all others similarly situated.
· Counsel for Plaintiff: Kane Moon | Lilit Tunyan | Allen Feghali
Defendant: East Bay Logistics, Inc., a California corporation.
· Counsel for Defendant: Hieu T. Williams | Michelle C. Freeman
Key Arguments or Remarks by Counsel
Plaintiff's counsel argued that East Bay Logistics ran a deliberate, company-wide scheme to underpay its hourly workforce. The company knowingly failed to count all hours worked, denied employees their legally required breaks, and issued wage statements that obscured what workers were actually owed. Counsel maintained that employees were left unable to verify whether they received proper compensation, and that the violations caused workers to lose social security and other government benefit accruals tied to their reported wages.
Defense counsel denied each allegation and raised multiple affirmative defenses, arguing that the company acted in good faith, that Plaintiff failed to state sufficient facts for a valid claim, and that certain claims were time-barred. The defense also challenged whether the case qualified as a class action, contending that individual issues dominated over common questions and that Maravilla was not an adequate class representative.
Claims
Failure to Pay Minimum and Overtime Wages
Maravilla alleged that East Bay Logistics failed to pay him and the class for all hours worked, including overtime. The company used time-rounding practices that consistently resulted in workers receiving less pay than they earned. Employees also occasionally worked beyond 12 hours in a day without receiving double-time pay. The company further failed to include non-discretionary bonuses and incentive pay when calculating the correct overtime rate.
Failure to Provide Meal and Rest Periods
Maravilla alleged the company required employees to work more than five consecutive hours without providing a 30-minute, uninterrupted meal break. The company also failed to inform workers of their right to a meal period by the end of the fifth hour of work. On rest breaks, the company did not allow employees to leave the premises, failed to authorize proper 10-minute rest periods for every four hours worked, and maintained no adequate policies to verify whether employees took their required breaks.
Failure to Reimburse Business Expenses
Maravilla alleged that the company required employees to use their personal cell phones and personal vehicles for work-related tasks without providing any reimbursement, in violation of California Labor Code Section 2802.
Failure to Pay Final Wages and Provide Accurate Wage Statements
Upon termination, the company allegedly failed to pay all wages owed within the legally required time frame. Wage statements issued to employees did not accurately reflect hours worked, wages earned, overtime, meal and rest period premiums, or the company's correct address, in violation of California Labor Code Section 226.
Unfair Business Practices
Maravilla alleged that all of the above conduct violated California Business and Professions Code Section 17200, which prohibits unlawful, unfair, and fraudulent business practices.
Defense
East Bay Logistics denied all allegations through a general denial and raised 23 affirmative defenses. The company argued that employees voluntarily waived their meal and rest periods, that employees failed to report any concerns about wages or working conditions as instructed, and that any recovery should be offset by benefits already received. The defense also argued that PAGA penalties were excessive and unconstitutional, that the class was improperly defined, and that Plaintiff lacked standing to represent the proposed class.
Jury Verdict
The case did not proceed to a jury trial. The parties reached a class action and PAGA settlement, which the Court preliminarily approved on January 22, 2024. The Honorable Michael Markman of Department 23, Alameda County Superior Court, granted final approval of the settlement on September 13, 2024.
The Court certified the Settlement Class as all persons employed by East Bay Logistics in California and classified as non-exempt who worked for the company between July 6, 2018, and July 18, 2023. No class member filed a written objection or requested exclusion from the settlement by the June 25, 2024, deadline.
East Bay Logistics agreed to pay a gross settlement amount of $455,000. From that amount, $40,000 was allocated to PAGA penalties, with $30,000 going to the California Labor and Workforce Development Agency and $10,000 distributed among aggrieved employees. The Court awarded Moon Law Group, PC attorneys' fees of $151,666.67 and reimbursed litigation costs of $13,666.62. The settlement administrator, Apex Class Action LLC, received $8,500 for administration costs. Maravilla received a $7,500 service payment as class representative in addition to whatever individual settlement share, he qualified for as a class member. Any uncashed settlement checks were directed to Legal Aid at Work as the Court-approved cy pres recipient. The Court set a compliance hearing for October 23, 2025, to confirm that all distributions were complete. The settlement did not constitute an admission of wrongdoing by East Bay Logistics.
Court documents are available upon request at [email protected]
