Judge: Peter Wilson, Case: 2021-01231825, Date: 2023-08-03 Tentative Ruling
The hearing on the Motion for Approval of PAGA Settlement is CONTINUED to September 14, 2023 at 2:00 p.m. in department CX101 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. Paragraph A.4 of the Settlement incorrectly identifies the Judge and Department.
4. The release is overly broad and ambiguous since it is not limited to claims, etc. for civil penalties under PAGA.
5. The Settlement provides for a 120-day check cashing period. The Court typically favors 180-day check cashing period. Is there a reason the check-cashing period should be shorter here?
6. Although it is included in the bid (ROA 97, Ex. E), the Settlement should also include a provision requiring the Settlement Administrator to conduct a skip trace for returned checks.
7. Are the parties aware of any related or overlapping actions that this Settlement may impact? If yes, please identify the case, the court in which it is pending, and provide a brief summary of the procedural posture of that case.
8. Paragraph G(8) provides that the prevailing party in a dispute to enforce the Settlement is entitled to attorney fees. The Court will not impose such a provision on unnamed Aggrieved Employees.
9. What is the status of Plaintiffs’ individual claims? The moving papers indicate Plaintiffs have or will enter into separate settlements with Defendant regarding their individual claims. What have or will Plaintiffs receive as compensation for their individual claims?
As to the Notice
10. The Notice to the aggrieved employees is to be revised consistent with the issues addressed above.
11. The Settlement provides that the Notice will be sent in English only. Settlement, ¶A.14.
12. The Notice does not provide the net amount of the Settlement, and the portion due to the LWDA or the Aggrieved Employees.
13. The release described in the Notice is not consistent with and broader than the release in the Settlement.
14. The Notice should advise the aggrieved employees that they cannot object or opt out of the Settlement, and that they are barred from pursuing the civil penalties for the Released Claims.
15. The Notice should advise the aggrieved employees that they should not contact the Court or the Clerk about the Settlement.
As to the Proposed Order
16. The proposed order is to be revised consistent with the issues addressed above.
17. The Settlement and Notice should be attached to the proposed Order as exhibits.
18. The proposed Order should include definitions of the PAGA Members and PAGA Period.
19. Paragraph 10 references a Service Award but no Service Award was requested and the Net Settlement Amount does not reflect a deduction based on any Service Award.
20. Paragraphs 5 and 15 are somewhat redundant.
21. The Settlement Administrator should be ordered to pay the approved disbursements, including the individual PAGA settlement payments, in accordance with the terms of the Settlement.
22. The Court will not enter dismissal of the PAGA claims until after the Final Accounting hearing.
23. Paragraph 16 should include a reference to CCP § 664.6.
24. 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 file proof of service.