Korbel employees get back pay settlement
Champagne and brandy giant Korbel has agreed to pay $750,000 to hundreds of current and former employees to settle a federal class action lawsuit filed by workers who say they didn’t get proper breaks, weren’t paid overtime or were required to work off the clock.
The lawsuit was filed in March 2008 in U.S. District Court in Fresno under the names of four workers in Korbel’s Central Valley facilities.
But the settlement also means monetary awards for employees of the company in Sonoma County, some of whom didn’t even realize there was a lawsuit pending.
Korbel officials did not return phone calls over several days seeking comment on the case.
Several employees of Korbel’s local operations have received legal notices explaining the case and requiring them to respond by today if they want to be part of the payout.
The agreement forbids attorneys from responding to media inquiries regarding the case, said Stan Mallinson of Lafayette, one of the plaintiffs’ lawyers.
But court documents outlining employees’ complaints allege that beginning in March 2004, Korbel violated federal and state wage and hour laws, resulting in monetary losses to employees, some of whom were minimum-wage workers.
The complaint charges that Korbel failed to pay all wages owed to its workers, didn’t pay the legal minimum wage, didn’t pay overtime and failed to provide rest and meal breaks as required by law. It also argues that Korbel didn’t keep accurate payroll records.
“For at least four years prior to the filing of this action and through to the present, (Korbel) maintained and enforced against its non-exempt employees, among others, unlawful practices and policies, in violation of California and federal wage and hour laws,” the complaint alleges.
It says the company forced them to work overtime without pay and obligated to work off-the-clock by “having to be on-site ready to work 10 minutes early and punched in” but not being paid for the time.
A class-action lawsuit is filed when a large group of people with similar claims allege they have been harmed. Four minimum-wage workers in Korbel’s Kern County facilities were named as defendants.
Workers covered under the settlement include those in 48 job classifications, ranging from on-call chefs and cellar interns to tractor drivers and bottling laborers. Korbel employed at least 600 workers who may have been affected during the period covered by the settlement, according to court documents.
Some part-time employees in Sonoma County have received notices advising them that they will receive $500 or more if they agree to take part in the settlement. A hearing will be held April 29 for a judge to finalize the terms of the agreement.
F. Korbel & Brothers., based in Forestville, is one of the nation’s largest producers of sparkling wine and one of Sonoma County’s largest wineries. It also produces brandy in California facilities, including in the Central Valley.
The company had $165 million revenue in 2007, about 500 employees and produced 2.3 million cases of sparkling and still wine, according to Press Democrat research. In addition to Korbel Champagne Cellars, the company includes Kenwood Vineyards, Valley of the Moon Winery and Lake Sonoma Winery.