Pleadings for Underfunded Contract under State Law Must be Sufficiently Detailed, California Court Rules

Section 2810 of the California Labor Code prohibits businesses from entering into contracts for certain services, such as security and janitorial services, where the contracting party “knows or should know” the contract does not include enough funds to allow the contractor to comply with applicable labor laws. But mere boilerplate allegations are not enough, the California Court of Appeal has ruled. It dismissed a putative class action against several airlines for alleged unpaid wages, overtime and uniform reimbursement due to employees of a defunct security services firm because employee’s complaint for violations of the statute failed to allege facts sufficient to state a claim. Hawkins v. TACA Int’l Airlines, S.A., et al., No. B242769 (Cal. Ct. App. Jan. 27, 2014).