Kenneth Smith Jr. has filed a lawsuit that could potentially shake up labor practices at a Texas corporation operating in California. On April 29, 2025, Smith lodged a complaint in the Superior Court of California for the County of Santa Clara against Hanwha Convergence USA Corp., accusing the company of multiple violations under the Private Attorneys General Act (PAGA). The case, which represents not only Smith but also other aggrieved employees and the State of California, seeks civil penalties for alleged labor law infractions.
The complaint paints a picture of systemic issues within Hanwha Convergence USA Corp., where Kenneth Smith Jr., a former hourly-paid employee from September to December 2024, claims he was denied proper compensation for all hours worked, including minimum wage and overtime. According to the filing, "Defendants’ failure to pay for all hours worked" extended beyond just Smith, affecting numerous other employees who were similarly classified as non-exempt. This classification is crucial as it entitles workers to specific wage protections under California law. The lawsuit further alleges that the company failed to provide mandatory meal and rest breaks, maintain accurate work records, and timely pay final wages upon termination.
Smith's allegations are backed by California's stringent wage-and-hour laws designed to protect workers from exploitation. The document highlights how these laws serve a public interest by ensuring employees receive fair compensation promptly. "Wages are not ordinary debts," the complaint asserts, emphasizing that any violation is not just an oversight but a criminal act under state law. In his legal action, Smith is seeking civil penalties rather than general damages or restitution—a strategic move that aligns with PAGA's framework allowing individuals to sue on behalf of themselves and others for labor code violations.
The stakes are high for Hanwha Convergence USA Corp., which operates across various counties in California, including Santa Clara County. As per the complaint, "Defendants were on actual and constructive notice of the improprieties alleged herein," suggesting deliberate non-compliance with labor regulations. These accusations include failing to furnish accurate wage statements and indemnify employees for necessary expenditures incurred during their employment.
Smith's lawsuit demands more than just financial penalties; it calls for injunctive relief to prevent future violations and ensure compliance with labor laws moving forward. The plaintiff also seeks attorneys' fees and costs incurred during litigation—an indication of the case's complexity and potential impact on corporate practices if successful.
Representing Kenneth Smith Jr. are attorneys John G. Yslas, Eugene Zinovyev, John Brown, and Gabriella Solé from Wilshire Law Firm based in Los Angeles. The case has been assigned Case No.: 25CV464694 in front of Judge M. Arechiga at the Superior Court of California for Santa Clara County.