Judge: Christopher K. Lui, Case: 23STCV30383, Date: 2025-06-11 Tentative Ruling
Case Number: 23STCV30383 Hearing Date: June 11, 2025 Dept: 76
This is a PAGA action seeking to recover civil penalties for wage and hour violations.
The parties have settled and Plaintiff now move for approval of the PAGA settlement.
TENTATIVE RULING
Plaintiff Ramonda Shakir’s motion for approval of the PAGA settlement is GRANTED.
ANALYSIS
Motion To Approve PAGA Settlement
Discussion
The parties entered into a settlement agreement regarding the PAGA claim. Plaintiff seeks an order approving settlement of the representative PAGA claim.
The State is the real party in interest as to a PAGA claim. (Tanguilig v. Bloomingdale's, Inc. (2016) 5 Cal.App.5th 665, 680.)
Pursuant to Labor Code § 2699(l)(2) & (4), a copy of the settlement agreement, and notice of this motion, was provided to the Labor and Workforce Development Agency (“LWDA”). (See Declaration of Roman Shkodnik, ¶ 45.)
The LWDA was given an opportunity to object if it wished to do so. The Court has not received any objection from the LWDA. It does not appear that Plaintiff received any objection from the LWDA. As such, the LWDA is deemed to have waived any such objection.
Labor Code, § 2699(l)(2) provides; “The superior court shall review and approve any settlement of any civil action filed pursuant to this part. The proposed settlement shall be submitted to the agency at the same time that it is submitted to the court.” A copy of the proposed settlement is attached to the Saunders Declaration as Exhibit A.)
(i) Except
as provided in subdivision (j), civil penalties recovered by aggrieved
employees shall be distributed as follows: 75 percent to the Labor and
Workforce Development Agency for enforcement of labor laws, including the
administration of this part, and for education of employers and employees about
their rights and responsibilities under this code, to be continuously
appropriated to supplement and not supplant the funding to the agency for those
purposes; and 25 percent to the aggrieved employees.
(Labor
Code, § 2699(i).)
The parties engage in mediation which resulted in settlement. (Shkodnik Decl., ¶¶ 10, 11.) Prior to settling, Plaintiff’s counsel engaged in investigation and informal discovery. (Id. at ¶ 7.)
The terms of the settlement, attached as Exhibit 2 to the Shkodnik Declaration, are as follows: The Gross Settlement Amount is $165,000,00 (Settlement Agreement, ¶ 3.1), from which the following payments will be made: (1) Attorney Fees in the amount of not more than 35% of the Gross Settlement Amount, estimated to be $57,750.00[1]; (Settlement Agreement, ¶ 3.3.1); (2) an unspecified amount of Costs (Id).); (3) Administrator Expenses of $3,000 (Settlement Agreement, ¶ 3.2.2); (4) PAGA Payment of 75% to the LWDA and 25% to Aggrieved Employees (Settlement Agreement, ¶ 3.3.3.)
Plaintiff’s counsel represents that the maximum value of the PAGA claim was estimated at approximately $279,800.00, as explained in the Shkodnik Decl. at ¶¶ 15 – 25.)
Plaintiff’s counsel sets forth the factors going into the evaluation of the value of the claims and risks of recovering less at ¶¶ 26 -27 of the of the Shkodnik Declaration.
Taking into account the factors Plaintiffs’ counsel has considered, the Court finds that, the settlement amount is fair and reasonable, given the risks and expenses of further litigation. The Court approves the PAGA Penalty payments to the LWDA ($69,569.97) and individual Aggrieved Employees ($23,189.99). (Shkodnik Decl., ¶ 43.)
The Court approves $57,750.00 in attorney’s fees, especially in light of counsel’s estimated lodestar amount of $12,2637.50 (Shkodnik Decl., ¶ 36.)
The Settlement Agreement did not specify the amount of costs at ¶ 3.3.1 to be deducted. By way of this motion, Plaintiff seeks costs of $11,490.04. Plaintiff’s counsel has submitted a summary of costs, which include $6,375.00 for mediation and $4,320.00 for expert fee. (Shkodnik Decl., Exh. 3.) The Court will approve these costs.
The scope of the release is appropriately limited to those claims which all Aggrieved Employees have based on the facts asserted in the Operative Complaint and PAGA Notice, arising during the PAGA Period. (Settlement, ¶ 5.)
The Settlement Administrator will administer the settlement in accordance with ¶ 4 of the Settlement Agreement. The Court approves the Settlement Administrator Expenses in the amount of $3,000.
The PAGA statute has no notice requirements for unnamed aggrieved employees, and there is no right for them to opt out. (Turrieta v. Lyft, Inc. (2021) 69 Cal.App.5th 955, 974.)
The motion for approval of the PAGA settlement is GRANTED.