This lawsuit alleges that Broker Solutions, Inc. dba New American Funding (“Defendant”), engaged in unlawful conduct by their: (1) failure to pay Plaintiffs, and all proposed class members, all wages when due, in violation of California Labor Code section 204; (2) unlawful diversions and/or deductions from Plaintiffs’, and proposed class members’, earned wages in violation of California Labor Code sections 221, 222, 223, and 224; (3) failure to provide Plaintiffs, and proposed class members, whom Defendant paid commissions, with signed written contracts that fully set forth the method by which commissions would be computed and paid, in violation of California Labor Code section 2751(a); and, (4) failure to indemnify Plaintiffs, and proposed class members, for all necessary expenditures or losses incurred in the discharge of their duties, in violation of California Labor Code section 2802. These failures further constitute unfair business practices, in violation of California Business and Professions Code section 17200, et. seq., and violations of California Labor Code section 2698, et. seq., the Private Attorneys General Act of 2004 (“the PAGA”), through which Plaintiffs, and proposed class members, seek civil penalties.
The Court stayed this action pending the United States Supreme Court’s forthcoming opinion in Viking River Cruises, Inc. v. Moriana, No. 20-1573, 2021 WL 5911481 (U.S. Dec. 15, 2021). On April 27, 2023, the Court granted Defendant's Motion to Compel Arbitration and this case to proceed to arbitration which will occur in late 2024.