Noori v. Countrywide Payroll & HR Solutions, Inc.

         [257 Cal.Rptr.3d 104] APPEAL from a judgment of the Superior Court of San Joaquin County, Roger Ross, Judge. Affirmed in part and reversed in part.

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[Copyrighted Material Omitted]

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         COUNSEL

         Robert J. Wasserman, Vladimir J. Kozina and Mayall Hurley P.C., Stockton, for Plaintiff and Appellant.

         Chamberlin & Keaster LLP, Robert W. Keaster, Encino, and David M. Berke for Defendant and Respondent.

         OPINION

         MURRAY, J.

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          The Legislature has enacted statutory requirements concerning itemized wage statements employers must provide employees along with their paychecks. In this case, Plaintiff Mohammed Noori sued his former employer, defendant Countrywide Payroll & HR Solutions, Inc., for violations of those statutory requirements. He alleged, inter alia, that Countrywide violated Labor Code section 226, subdivision (a)^[1] by (1) providing wage statements bearing the acronym "CSSG" in violation of the requirement to include the "name ... of the legal entity that is the employer"; and (2) failing to maintain copies of accurate itemized wage statements.^[2] Noori also sought to bring those claims under the Private Attorneys General Act (PAGA). The trial court granted Countrywide’s demurrer to the first amended complaint without leave to amend.

         On appeal, Noori contends the trial court erred in finding (1) the wage statements provided to Noori, as a matter of law, complied with section 226, subdivision (a)(8) ’s requirement to include the employer’s name; (2) Countrywide maintained copies of wage statements as required by section 226, subdivision (a); and (3) Noori failed to satisfy the notice requirement for bringing a claim under PAGA.

         We conclude the amended complaint states a claim under section 226, subdivision (a)(8) for failure to provide the employer’s name. Noori’s allegation that Countrywide’s wage statements bore only the acronym "CSSG," an abbreviation of a fictitious business name, adequately supports this claim. We also conclude Noori satisfied the notice requirement for bringing that claim under PAGA. Accordingly, we reverse the trial court’s orders as to those two causes of action.

          As to the failure to maintain copies of accurate itemized wage statements claim, we affirm the trial court’s order granting the demurrer without leave to amend because Noori’s complaint fails to assert facts supporting the injury element.

          FACTUAL AND PROCEDURAL BACKGROUND

          The First Amended Complaint

         Following a successful demurrer, Noori filed an amended complaint alleging Countrywide violated section 226, subdivision (a) by (1) failing to furnish

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"accurate itemized wage statements" (the "failure to furnish claim"); and (2) failing to maintain copies of accurate itemized wage statements (the "failure to maintain claim"). He also sought class certification, as well as to bring the claims under PAGA (§ 2698).

         [257 Cal.Rptr.3d 105] The Failure to Furnish Claim

         As to his first claim, Noori alleged that in 2015, he began working for Countrywide. Countrywide furnished him wage statements that listed the employer of record as "CSSG." Noori alleged that based on research, CSSG stood for "Countrywide Staffing Solutions Group," which is not a name listed with the California Secretary of state, but is a fictitious business name for defendant Countrywide Payroll & HR Solutions, Inc. "at least in some States."^[3] He further alleged that, based on research, Countrywide Staffing Solutions Group, Inc. operates under the fictitious business name of "Countrywide HR" or "CWHR" in California.

         Noori alleged the wage statements violated section 226, subdivision (a)(8) by failing to show the name of his employer.^[4] He further alleged that he and other employees "suffered injury as a result of Defendant’s knowing and intentional failure to comply with Labor Code section 226(a)." He maintained that he and other employees were injured, under section 226 subdivision (e)(2), because they were unable to "promptly and easily determine ‘the name ... of the legal entity’ " from the furnished statements.

          The Failure to Maintain Claim

         As to his second claim, Noori alleged that prior to his suit, he wrote to Countrywide, requesting copies of his "payroll records, personnel records and personnel file." Countrywide, in response, provided records that failed to show the employer’s name and address. Based on this, he alleged that Countrywide violated section 226 subdivision (a) ’s requirement to maintain a copy of accurate itemized wage statements.

          The Private Attorney General Act Allegations

          Seeking to also bring the above claims under PAGA, Noori alleged that he satisfied PAGA’s statutory notice requirement by sending a letter to Countrywide and the Labor and Workforce Development Agency notifying them of the specific Labor Code provisions violated and facts and theories in support. Noori then brought suit after the agency did not provide notice that it intended to sue.

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          Countrywide’s Demurrer

          Countrywide demurred to the amended complaint arguing neither of the first two causes of action stated a claim. As to the failure to furnish claim, Countrywide argued each wage statement identified the employer as CSSG, an acronym for Countrywide Staffing Solutions Group, a fictious business name of Countrywide. Countrywide maintained that the use of a fictious business name is proper, and it need not ...