Judge: Lon F. Hurwitz, Case: 19-01082991, Date: 2022-11-21 Tentative Ruling

Motion to Approve PAGA Settlement

RULING: Having reviewed the proposed Settlement Agreement, the proposed Notice and the accompanying papers, the Court has the following concerns:

1. Counsel must inform the court by declaration whether there is any class or other representative action in any other court that asserts claims similar to those alleged in the action being settled. (See Guidelines for PAGA Settlements, Guideline 10 on this court’s tentative ruling site).

2. Plaintiffs must provide more details regarding what specific information Plaintiffs’ counsel received and reviewed that informed their analysis of the case.

3. Plaintiffs must provide further information showing how they arrived at the total exposure value of $10,535,700. How many aggrieved employees and how many initial and subsequent violations were assumed? Plaintiffs must also provide additional information regarding why the proposed settlement amount is reasonable in light of the heavy discount from the maximum total exposure value. While Plaintiffs indicated that Defendant made various arguments, Plaintiffs have not indicated whether those arguments were likely meritorious, and if so, what information influenced Plaintiffs’ evaluation of the merits of Defendant’s arguments?

4. What is the expected number of Aggrieved Employees?

5. The court intends to grant an enhancement of $5,000 to each Plaintiff rather than the $7,500 (total of $15,000) requested.

6. The following need to be addressed in the Proposed Order so that the allegedly aggrieved employees have a fuller understanding of the essential terms and consequences of the settlement:

a. The Settlement Agreement needs to be referenced in the Order by the ROA number of the declaration to which it is attached.

b. A proposed date for the final accounting hearing must be included in the Proposed Order.

The hearing on this Motion for Approval of PAGA Settlement and the Status Conference are continued to February 3, 2023 at 1:30 p.m. in Department CX103. It is not necessary for the parties to resubmit briefing which has already been filed with the Court. Supplemental declarations or other supplemental materials addressing the identified issues shall be filed no later than 9 court days prior to the continued hearing date. If a revised settlement agreement is submitted, a redlined version showing all changes, deletions, and additions must also be submitted electronically to the court.

The court does not require any physical or remote appearance at the hearing scheduled for November 18, 2022.