Case Background
Teodoro Curameng Deguzman worked for Millennium Health, LLC in California as an hourly, non-exempt employee. He filed a class action complaint on behalf of himself and similarly situated current and former employees. The action focused on alleged violations of the California Labor Code and unfair business practices. The proposed class included all hourly, non-exempt employees employed in California during the statutory period.
Cause
Deguzman alleged that Millennium Health maintained unlawful policies and practices. These included failing to pay minimum and overtime wages, denying compliant meal and rest periods, and not maintaining accurate time and payroll records. He claimed employees were required to wait in line to clock in without pay and that the company miscalculated overtime, meal break premiums, and sick pay. He also alleged the company failed to reimburse necessary business expenses, such as personal phone use for work, and did not pay all wages on termination.
Injury
Deguzman and the proposed class allegedly lost wages from unpaid work time, missed break premiums, and unreimbursed expenses. They also claimed financial harm from untimely payment of final wages, inaccurate wage statements, and improper calculation of compensation. The alleged practices deprived them of legally guaranteed earnings and workplace protections.
Damages
The complaint sought recovery of unpaid wages, break premiums, and reimbursable expenses. Deguzman also sought penalties, liquidated damages, pre-judgment interest, restitution, and attorney’s fees. He requested injunctive relief to require compliance with labor laws, along with any further equitable remedies deemed appropriate by the court.
Key Arguments and Proceedings
Legal Representation
Plaintiff(s): Teodoro Curameng Deguzman
Counsel for Plaintiff: Kane Moon
Defendant(s): Millennium Health LLC
Counsel for Defendant: Alison Lynch
Claims
Deguzman filed eight causes of action:
Failure to pay minimum wages.
Failure to pay overtime compensation.
Failure to provide meal periods.
Failure to authorize and permit rest periods.
Failure to indemnify necessary business expenses.
Failure to timely pay final wages at termination.
Failure to provide accurate itemized wage statements.
Unfair business practices under California’s Unfair Competition Law.
Defense
Millennium Health, LLC generally and specifically denied all allegations in Teodoro Curameng Deguzman’s First Amended Complaint, disputing that Deguzman or any alleged aggrieved employees suffered damages or were entitled to relief. The company asserted that the court lacked subject matter jurisdiction due to failure to exhaust administrative remedies and raised procedural and equitable defenses including statutes of limitations, unclean hands, estoppel, waiver, laches, and uncertainty of the pleading.
The affirmative defenses also claimed avoidable consequences, failure to mitigate, unjust penalties, accord and satisfaction, prior settlement or release, lack of willful conduct, lack of standing, good faith dispute, exemptions from wage laws, de minimis violations, arbitration requirements, and voluntary waiver of meal or rest periods. Millennium further reserved the right to assert additional defenses as discovery progressed, seeking dismissal with prejudice, costs of suit, and any other relief deemed appropriate by the court.
Judgement
The San Diego County Superior Court granted plaintiff Teodoro Curameng Deguzman’s unopposed motion for final approval of the class action and PAGA settlement with Millennium Health, LLC, finding the $299,433.61 settlement fair, reasonable, and adequate. The court approved $17,252.64 in litigation costs, $8,000 in administration costs, and reduced the plaintiff’s service award from $10,000 to $7,500, reallocating the $2,500 difference to the net settlement fund for distribution under the 75/25 LWDA split. Attorney’s fees of $99,811.20—one-third of the gross settlement—were approved as reasonable, representing a negative multiplier compared to counsel’s lodestar. The plaintiff was directed to submit a revised proposed order and provide it to the LWDA within 10 days.
Court Documents
Court documents are available for purchase upon request at [email protected]
