Peloton Answers California Worker’s New Wage Complaint After Court Lifts Stay

Peloton Interactive Inc. answered a class action wage and hour lawsuit filed against it late last week. The responsive filing asserted affirmative defenses including failure to state a claim and lack of standing in response to allegations that the company shorted its California workers certain compensation and on-the-job benefits.

The state court class action began earlier this year. A Southern California Peloton Sales Specialist, who worked as an hourly employee for the company for about five years, argued that Peloton failed to pay overtime, reimburse expenses, and offer meal and rest breaks, as well as provided inaccurate wage statements.

Peloton removed the suit to federal court and subsequently asked the court to pause proceedings pending the outcome of an overlapping action undergoing settlement approval.

Per a court order, the plaintiff was granted leave to file a revised pleading and add a cause of action under the Private Attorneys General Act (PAGA), provided that he limit the liability period to Nov. 18, 2020 to the present and exclude any class members who were part of the other settlement.

The plaintiff then filed an amended complaint, alleging eight labor law violations, unfair business practices under California law, and violation of PAGA. The complaint seeks to certify a class of California workers subjected to Peloton’s practices, and subclasses corresponding to single causes of action, like failure to provide rest periods.

In last week’s response Peloton denied many of the allegations and deemed others legal conclusions that it need not respond to. The company further denied that it violated California labor law.

The plaintiff is represented by Beligan & Carnakis and Peloton by Gibson Dunn & Crutcher LLP.