Circuit City Suit Can Go Forward, Judge Says
California’s Supreme Court ruled on Friday that a lawsuit by a former Circuit City employee over unpaid overtime benefits can go forward, the Los Angeles Times reported. The ruling means that employees can sue their employers over labor code violations even if- as was the case with Circuit City- they had earlier signed documents waiving their rights to do so.
The case grew out of a 2002 lawsuit by employee Robert Gentry against Circuit City, when the former customer service employee alleged that he had been denied overtime pay. Gentry had signed the agreement, required for all the company’s workers, that they could not sue the company and that damages were capped, but the court found that that agreement violated state labor laws, and was thus unenforceable.
The ruling could lead, the LA Times said, to a class action lawsuit against Circuit City, as well as similar suits against other companies.