Judge: Lon F. Hurwitz, Case: 19-01109449, Date: 2023-09-27 Tentative Ruling

Final Accounting

OVERVIEW/ANALYSIS: This is a PAGA-only action based on minimum/overtime wage claims and meal period/rest break claims. The Complaint asserting a single PAGA cause of action was filed on November 4, 2019. The operative First Amended Complaint (“FAC”) was filed on September 8, 2021, and alleged additional Labor Code violations. The specific PAGA predicates identified in the FAC are:

1. Failure to all wages owed (minimum, overtime, and waiting time);

2. Meal break violations;

3. Rest break violations;

4. Inaccurate wage statements; and

5. Unreimbursed business expenses.

The PAGA settlement was approved on August 19, 2022. (ROA 186). The Judgment was entered on September 27, 2022. (ROA 192). The Gross Settlement Amount of $199,000.00 (for 206 aggrieved employees) was to be disbursed as follows:

• Attorney’s fees $ 66,333.00

• Litigation costs $ 9,334.41

• Administration costs $ 2,450.00

• Enhancement $ 3,500.00

• LWDA $ 88,036.94 (75% of net $117,382.59)

At the approval hearing, the Court reduced the amount of requested attorney’s fees, the amount of Plaintiff’s requested enhancement, and awarded actual costs. Accordingly, the Court found the above amounts were fair and reasonable. The Final Accounting was set for July 19, 2023. Plaintiff was ordered to submit a final report, including the amounts distributed under the settlement, on or before June 30, 2023.

On July 12, 2023, Plaintiff filed the Settlement Administrator’s declaration. (ROA 203). It is noted the declaration is dated June 30, 2023. The Administrator attests that the 206 aggrieved employees worked a total of 29,346 pay periods from October 8, 2018, through May 15, 2021. The total amount to be distributed to the aggrieved employees was $29,345.65. [Declaration of Yami Burns (“Burns Decl.”), ¶ 2.]

The Administrator received the settlement funds on August 29, 2022, and issued settlement checks to the aggrieved employees on October 14, 2022. The other approved disbursements were made on the same day. [Id. at ¶¶ 3-5.] The check-cashing period expired on April 12, 2023. As of June 30, 2023, 104 checks, totaling $9,739.77, remained uncashed. [Id. at ¶ 7.] The Administrator attests that pursuant to the terms of the Settlement, funds from the uncashed checks shall be paid to the State’s Unclaimed Property Fund. [Id. at ¶ 9.]

However, the Administrator does not state whether the funds from the uncashed checks have been sent to the Unclaimed Property Fund. The Final Accounting cannot be approved until this occurs.

RULING:

The Final Accounting hearing is CONTINUED to September 29, 2023 at 1:30 p.m. in Department CX103 so that Plaintiff can file a supplemental declaration attesting to the disbursement of the funds from the uncashed checks to the State’s Unclaimed Property Fund.

Counsel must file supplemental papers addressing the Court’s concern no later than fourteen (14) calendar days prior to the continued hearing date.

Plaintiff to give notice of the Court’s ruling.

The Court does not require any physical or remote appearance at the hearing scheduled for July 19, 2023.