Judge: Randall J. Sherman, Case: 2021-01220136, Date: 2022-09-30 Tentative Ruling

Plaintiff’s Motion for Approval of PAGA Settlement and Award of Attorneys’ Fees and Costs, Incentive Award, and Settlement Administration Costs is granted, except that the court approves plaintiff’s attorneys’ fees only in the amount of $67,500, approves plaintiff’s enhancement award only in the amount of $3,000, and requires that the cover letter to be sent to the aggrieved employees with their penalty checks (1) correct the case number at the top of the letter from 012201360 to 01220136, and (2) delete the reference to Industrial Wage Order 2-2001, which was not mentioned in the Complaint or the PAGA notice to the LWDA.

The court concludes that a reasonable attorney fee in this case is 30% of the gross settlement amount.  This case settled at mediation only about five months after it was filed, requiring a relatively small amount of work on the case, and the average recovery by the aggrieved employees is only about $82 per person.  The court also concludes that a reasonable enhancement award in this case is only $3,000, due to the small average recovery by the aggrieved employees, and the small amount of effort that plaintiff needed to spend on this quickly-settled case.

The court concludes that the $225,000 PAGA settlement, as approved, is fair, adequate and reasonable, and approves the following specific awards:

• $67,500.00 to plaintiff’s counsel for plaintiff’s attorneys’ fees, reduced from the $75,000 requested;

• $13,797.48 to plaintiff’s counsel for plaintiff’s attorney costs, as requested;

• $3,000.00 to plaintiff Jose Luis Parada George as an enhancement award, reduced from the $7,500 requested;

• $4,400.00 to the Administrator, Simpluris, Inc., as requested;

• $102,226.89, which is 75% of the net settlement amount of $136,302.52, to the LWDA as its share of PAGA penalties; and

• $34,075.63, which is 25% of the net settlement amount of $136,302.52, to the aggrieved employees as their share of PAGA penalties.

The court sets a Final Report Hearing for April 28, 2023 at 10:00 a.m., to confirm that distribution efforts are fully completed, including the distribution of uncashed aggrieved employee checks after 120 days, that the Administrator’s work is complete, and that the court’s file thus may be closed.  The parties must report to the court the total amount that was actually paid to the aggrieved employees.  All supporting papers must be filed at least 16 days before the Final Report Hearing date.

Plaintiff is ordered to give notice of the ruling to the LWDA and to defendant.