Judge: Mark H. Epstein, Case: 24SMCV02114, Date: 2024-08-19 Tentative Ruling

Case Number: 24SMCV02114    Hearing Date: August 19, 2024    Dept: I

This is a motion to confirm a PAGA settlement.  The parties have exchanged records and engaged in discovery and have reached a tentative resolution.  Because this is a PAGA case, though, the settlement must be approved by the court. 

The defense has agreed to pay a total of $410,000.  Of that, 40%, or $164,000 is tentatively allocated to fees and $500 to costs and $10,000 to the administrator.  That leaves $235,500 remaining as the presumptive penalty.  Of that, 75% goes to the government (by law) with the remaining 25% going to aggrieved employees.  The court has some questions.

First, the court is not at this time being asked to approve the fees.  The court understands that it is being asked only to approve the settlement in gross.  The court needs to confirm that.  Second, the court would like to know the maximum penalty.  The court is well aware that PAGA cases often settle for a fraction of the total—in part because the total penalty is very discretionary and usually calculated on a per violation basis (for the maximum), which means each day is a new violation.  So a deep discount is common and appropriate.  Still, the court would like to know.  Third, the court will confirm that no employee—other than the named individual—is waiving anything other than a recovery based on the PAGA claims that were actually brought (not that could have been brought).  Fourth, that the named plaintiff is not getting anything by way of this settlement (other than perhaps a pro rata payment).  Fifth, whether there is a separate settlement with the named plaintiff and, if so, how much is being paid.  And sixth, to confirm that there is no reversion, meaning that the money will be sent out to aggrieved employees and any excess will be sent to them as well.

If the answers are satisfactory, the court is inclined to GRANT the motion.