Judge: Peter Wilson, Case: 2021-01221147, Date: 2023-08-10 Tentative Ruling

Having considered the papers, including all supplemental papers, filed in connection with the Motion for Approval of $350,000 PAGA Action Settlement, the parties should be prepared to address the following:

1. Was the LWDA served with the supplemental papers?

2. Although aggrieved employees are not permitted to dispute their individual PAGA payments, the Notice should be revised to include the Net Settlement Amount of the PAGA penalties, the allocation of the PAGA penalties to the LWDA and to aggrieved employees, and a general explanation of the calculation of the individual PAGA payments i.e. pro rata based on pay periods during the Covered Period. The Notice should also explain that this payment is in exchange for the release of the PAGA claims. This information is necessary for aggrieved employees to understand what the Settlement is about and why they release their PAGA claims and cannot opt out or object.

3. The “Released Claims” should be revised to remove the references to “Complaint and” in the following phrase: “as pleaded in Plaintiff’s Complaint and the First Amended Complaint or that could have been pleaded on the facts as alleged in the Complaint and First Amended Complaint and Plaintiff’s notice letters to the LWDA.” This entire phrase was removed from the definition of “Released Claims” in the Amended Settlement. To avoid having to further amend the Settlement, this revision should be made in the proposed Order in paragraph 3.

4. The proposed Order awards $10,533.98 in litigation costs but the moving papers requested $10,380.48 in litigation costs. No explanation or further documentation for the increase in the costs was provided. Was this change in the costs intentional?

If these issues are resolved to the satisfaction of the Court at the hearing, the Court is inclined to GRANT the Motion subject to the following:

$ 5,000.00 for Plaintiff’s General Release Payment;

$ 116,666.66 for Attorney’s Fees;

$ 10,380.48 for Litigation Costs [or as otherwise determined at the hearing];

$ 10,000.00 for the Settlement Administrator’s Fees and Costs; and

$ 207,952.86 total PAGA penalties with $155,964.65 for the LWDA’s share (75%) and $51,988.21 for the aggrieved employees’ share (25%) [if the award of litigation costs does not change]. 

Plaintiff is ordered to submit a revised Notice and revised proposed Order in accordance with the above and as discussed at the hearing within 5 court days.

Plaintiff is ordered to give notice, including to the LWDA, and file proof of service.