California Appellate Tracker

Magadia v. Wal-Mart Associates, Inc. (9th Cir. 2021)

June 4, 2021

Wal-Mart pays workers regular wages plus a quarterly bonus for good work during the quarter. Under California law, the bonus is regular wages which must be used to compute overtime time. But since Wal-Mart doesn’t know until the end of the quarter whether it will pay a worker the bonus, its biweekly pay statements don’t include the bonus in calculating the overtime pay rate, but the end of the quarter statement lists both the bonus and the recomputed overtime wage rate. This decision holds that this method of reporting overtime wage rates complies with Lab. Code 226. Wal-Mart also did not violate Lab. Code 226 by sending wage statements to terminated employees at the end of the two-week pay period during which their employment ended rather than on the date of termination along with their final pay check.

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Magadia v. Wal-Mart Associates, Inc. (9th Cir. 2021)

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