On Wednesday, Peloton Interactive Inc. removed an employment lawsuit brought on behalf of aggrieved California hourly workers. The complaint, originally filed in early January, contends that the fitness equipment and media company violated the California Labor Code by failing to pay due wages and issue accurate wage statements.
The plaintiff, a southern California resident, was a Peloton hourly non-exempt sales associate for approximately six years, the filing says. The class action claims that the company shorted him and other similarly situated employees due pay and other benefits owed under California law in the nine count complaint.
In this week’s filing, the defendant argues that the case belongs in federal court. Peloton contends that not only is its removal motion timely, but that the court has subject-matter jurisdiction over the action pursuant to the Class Action Fairness Act of 2005 (CAFA).
The case meets CAFA’s jurisdictional requirements, Peloton says, before spelling out why.
The company argues that the proposed class consists of more than 100 members and that Peloton and plaintiff are not citizens of the same state, as Peloton is a Delaware corporation with New York headquarters.
In addition, Peloton claims that a conservative estimate of the amount in controversy exceeds the $5 million threshold. Allegedly, the complaint puts in question more than $6.3 million based on the defendant’s calculation regarding “a purported failure to pay timely wages upon separation of employment, failure to provide accurate wage statements, and denial of meal and rest breaks … inclusive of attorneys’ fees.”
The case has been assigned to Judge Michael W. Fitzgerald.
The former worker is represented by Beligan & Carnakis and Peloton by Gibson Dunn & Crutcher LLP.
