The appellate court reversed, ruling both that this case was factually different from the two prior cases and that the two other appellate courts incorrectly applied established law as to how joint employer status was to be determined. The case was dismissed before trial, and the plaintiff appealed. The trial court ruled that the case was the same as two prior court of appeal cases against Shell, in which Shell was not found to be a joint employer of MSO employees.
He subsequently sued R&M and Shell for failure to pay overtime wages and failure to pay premiums for missed breaks. The plaintiff was terminated by R&M in December 2008. He received no employment benefits directly from Shell, and R&M determined whether he was exempt or nonexempt and controlled his compensation and benefits. The plaintiff was always paid directly by R&M. The plaintiff was a cashier and later a station manager at a Shell station operated by R&M Enterprises. The operators did not have discretion to modify the tasks set forth in the MSO contract and manuals, which were performed by their employees. The MSO contract provided detailed instructions for compliance with labor laws, but called for the operators to hire, fire, train, discipline and maintain payroll records for their own employees. They were also required to provide daily reports to Shell and submit to periodic inspections.
#Shell gas station manuals
The operators were required to follow detailed terms that were set forth in Shell's manuals and guides. The MSO operators were required to use Shell's electronic point-of-sale cash register system, with the proceeds paid directly to Shell, not to the operators. The operators' employees performed all work at the station. The operators leased station convenience stores and car washes and paid monthly rent. Under the MSO model, Shell entered into a set of nonnegotiable form agreements with each MSO operator, which, in turn, operated the station. Shell owned more than 300 gas stations in California, but operations were conducted through a multisite operated (MSO) model.
Shell's level of control made it a joint employer along with the company that ran the station, the court said.
#Shell gas station code
A gas station manager could sue Shell Oil for violations of the California Labor Code even though Shell operated its gas stations through contracts with separate companies that ran the day-to-day operations, a California appeals court ruled.
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