´Sav-On´ Decision May Increase Overtime Class Actions in California

On August 26, 2004, the California Supreme Court decided Sav-On Drugstores vs. Superior Court—a decision that will likely increase the number of overtime class actions pursued in California. The Sav-On decision reversed an appellate decision that had made it more difficult for the plaintiffs’ lawyers to have overtime exemption cases certified as class actions. The practical effect of Sav-On is its confirmation that overtime class actions may, on an appropriate evidentiary record, more readily be certified—a realization that will require employers and their counsel to rethink their strategy for opposing class certification.

The Sav-On plaintiffs claimed that Sav-On had misclassified operating managers (OMs) and assistant managers (AMs) as exempt from the overtime laws. The trial court granted the plaintiffs’ motion for class certification, finding there were predominant common questions of fact and law. The Court of Appeal reversed, holding that, because the actual activities