Judge: Peter Wilson, Case: 2020-01175039, Date: 2023-08-10 Tentative Ruling
The hearing on the unopposed Motion for Approval of PAGA Settlement is CONTINUED to September 21, 2023 at 2:00 p.m. to permit the parties to respond to the following issues. A supplemental briefing shall be filed at least 9 days before the continued hearing and respond where necessary to each of the points raised below. If required, an amendment to the settlement agreement is directed, rather than “amended settlement agreement”, to avoid use of limited Court time and resources. The parties shall also provide redline copies of the revised notice and proposed order.
A judgment in a PAGA action “binds all those, including nonparty aggrieved employees, who would be bound by a judgment in an action brought by the government.” (Arias v. Superior Court (2009) 46 Cal.4th 969, 986.) Thus, “PAGA settlements are subject to trial court review and approval, “to determine whether it is fair, reasonable, and adequate in view of PAGA’s purposes to remediate present labor law violations, deter future ones, and to maximize enforcement of state labor laws. (See Moniz v. Adecco USA, Inc. (2021) 72 Cal. App. 5th 56.)
As to the Settlement
1. Were the Motion and supporting papers served on the LWDA? If so, the proof of service of the Motion should be filed with the Court.
2. The PAGA Notice letters to the LWDA must be submitted to the Court.
3. Since the Settlement was executed, have the parties become aware of any overlapping or related matters to this action?
4. Plaintiff’s counsel did not provide information sufficient for the Court to conduct a lodestar cross-check of the attorney fees requested.
5. The ROA 84, Koulloukian Declaration indicates that an itemized costs bill is attached as Exhibit 4 but that exhibit was not attached.
6. The Settlement Administrator has not provided a quote or bid, or declaration to support its request for fees and costs.
7. What is the status of Plaintiff’s individual claims? The Motion indicates Plaintiff will enter into a separate settlement and release? Has Plaintiff done so? Will Plaintiff receive any compensation aside from the $2,500 for her individual settlement and release, and her individual PAGA payment?
As to the Notice
8. The Notice to the aggrieved employees is to be revised consistent with the issues addressed above.
9. Does the Notice need to be translated to any other language?
10. The Notice references AUS Decking, Inc. or AUS and Plaintiff Junior Valdez. The Notice also references the wrong lawsuit and the wrong PAGA Period. The Notice should be updated with the correct parties, lawsuit and PAGA Period.
11. The Notice should identify the Net Settlement Amount of PAGA penalties and explain that 75% will go to the LWDA and 25% will go to the aggrieved employees, which will then be allocated pro rata based on the number of pay periods worked by the aggrieved employee.
12. The Notice does not provide a deadline to contest the number of pay periods worked by the aggrieved employee. What are the acceptable methods for submitting disputes regarding the pay periods?
13. The Notice should provide more detail on the released claims, particularly since the proposed Order makes a finding that the Notice “fairly and adequately describes the Action, the approved Settlement, …”.
As to the Proposed Order
14. The proposed order is to be revised consistent with the issues addressed above.
15. The Settlement and Notice should be attached to the proposed Order as exhibits.
16. The proposed Order should include definitions of aggrieved employees and PAGA Period.
17. The net amount of the PAGA penalties, the amount due to the LWDA and the total amount due to the aggrieved employees should be included in the proposed Order. The proposed Order should order the Settlement Administrator to make these disbursements in accordance with the terms of the Settlement Agreement.
18. Paragraph 16 should include a reference to CCP § 664.6.
19. The proposed order should include a date for the final accounting. The final accounting should occur after the deadline to cash checks has expired. The Court holds final accounting hearings on Fridays at 9:00 AM. The proposed order shall also state that Plaintiff will submit to the Court a final report at least 5 court days prior to the final accounting, including the actual amounts paid to aggrieved employees and the other amounts distributed under the settlement, including uncashed checks.
Plaintiff is ordered to give notice, including to the LWDA, and file a proof of service. Counsel must also serve the LWDA with any amendments to the Settlement and supplemental briefing made pursuant to this order, and provide proof of service.