ABM Industries to Pay $5.4m For Requiring Employees To Use Cell Phone At Work

ABM Industries, a Facility Management company based in New York, has agreed to pay $5.4 million to end a CA federal class suit. The suit alleges that the company violated Section 2802 of the Labor Code. In this case, by forcing employees to use their personal cell phones for work without reimbursing them ABM was in violation of state law.

Section 2802 of the Labor Code requires employers to reimburse workers for the “necessary” expenses they incur at work. The workers claim that ABM required them to use their personal phones to punch in & out of work, as well as communicate with managers.

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The suit also includes claims under the Private Attorneys General Act, as well as California’s Unfair Business Practices Act. Workers urged the court last week to approve the deal, calling it “fair and reasonable” when measured against the strength of their case. $17.7 million dollars was calculated as the expected payout if the workers win their trial, making a $5.4 million settlement too tempting for ABM.

“The amount is equivalent to no more than 100 percent of the Labor Code 2802 exposure as our expert calculated it, and so we’re very pleased.” said Genevieve Casey of Feinberg Jackson, one of the two law firms currently representing the workers in this case.

This case is a classic example of what happens when an employer places unexpected financial burdens onto their employees. When an employer forces you to use your own resources to complete tasks, you are entitled to compensation in the form of reimbursement.

Younessi Law has over 25 years of experience defending the rights of Los Angeles employees in all kinds of cases and situations. For every one, we take special care to make sure that you get what you are owed. Don’t let an employer take advantage of you, or force you to use your own resources to do work that they assign to you.

Call Younessi Law for a FREE case consultation at (323)777-7777. Our team of 20+ attorneys is trained to handle all levels of employment & labor law, and can help you get the justice you deserve.