Lawsuit Alleges Packaging Corporation of America Underpaid Employees

Employment law attorneys file class action lawsuit over alleged California Labor Code violations

Published on Feb. 28, 2026

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The Sacramento employment law firm Blumenthal Nordrehaug Bhowmik De Blouw LLP has filed a class action lawsuit against Packaging Corporation of America, alleging the company failed to accurately record employees' full-time worked hours, including time worked off the clock, resulting in inaccurate wage payments and other California Labor Code violations.

Why it matters

This lawsuit highlights ongoing concerns about wage and hour violations, particularly in the manufacturing and packaging industries where employees may be asked to work off the clock or denied proper meal and rest breaks. The case could set precedents around how companies must calculate and pay sick leave and other legally required benefits.

The details

According to the lawsuit, Packaging Corporation of America allegedly failed to provide employees with all legally required meal and rest periods. The company is also accused of underpaying sick wages by failing to accurately calculate them based on employees' regular rates of pay, which included non-discretionary incentive wages.

  • The class action lawsuit, Case No. 26CV003725, was filed on February 27, 2026 in the Sacramento County Superior Court of the State of California.

The players

Blumenthal Nordrehaug Bhowmik De Blouw LLP

A Sacramento-based employment law firm that filed the class action lawsuit against Packaging Corporation of America.

Packaging Corporation of America

The defendant company accused of California Labor Code violations, including failing to accurately record employee work hours and pay proper sick leave wages.

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What’s next

The judge will determine whether to certify the case as a class action lawsuit, which would allow other affected Packaging Corporation of America employees to join the litigation.

The takeaway

This case highlights the ongoing challenges workers face in ensuring they are properly compensated for all hours worked, including off-the-clock time, as well as receiving legally mandated benefits like meal breaks and sick leave. The outcome could set important precedents for wage and hour protections in the manufacturing industry.