JOINT STIPULATION OF CLASS ACTION AND PAGA SETTLEMENT 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 Edwin Aiwazian (SBN 232943) Arby Aiwazian (SBN 269827) Joanna Ghosh (SBN 272479) LAWYERS for JUSTICE, PC 410 West Arden Avenue, Suite 203 Glendale, California 91203 Tel: (818) 265-1020 / Fax: (818) 265-1021 Stanley D. Saltzman (SBN 90058) MARLIN & SALTZMAN, LLP 29229 Canwood Street, Suite 208 Agoura Hills, California 91301 Tel: (818) 991-8080 / Fax: (818) 991-8081 Attorneys for Plaintiff ELIAZAR GONZALEZ Jamerson C. Allen (SBN 132866) Scott P. Jang (SBN 260191) JACKSON LEWIS PC 50 California Street, 9th Floor San Francisco, California 94111 Tel: (415) 394-9400 / Fax: (415) 394-9401 Scott C. Lacunza (SBN 186892) JACKSON LEWIS PC 200 Spectrum Center Drive, Suite 500 Irvine, California 92618 Tel: (949) 885-1360 / Fax: (949) 885-1380 Attorneys for Defendant THE WINE GROUP, LLC SUPERIOR COURT OF THE STATE OF CALIFORNIA COUNTY OF ALAMEDA ELIAZAR GONZALEZ; individually, and on behalf of other members of the general public similarly situated and on behalf of other aggrieved employees pursuant to the California Private Attorneys General Act; Plaintiffs, vs. THE WINE GROUP, LLC, a California corporation; and DOES 1 through 100, inclusive, Defendant. ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) CASE NO.: RG15781726 Honorable Ioana Petrou Department 17 JOINT STIPULATION OF CLASS ACTION AND PAGA SETTLEMENT
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JOINT STIPULATION OF CLASS ACTION AND PAGA SETTLEMENT
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Edwin Aiwazian (SBN 232943) Arby Aiwazian (SBN 269827) Joanna Ghosh (SBN 272479) LAWYERS for JUSTICE, PC 410 West Arden Avenue, Suite 203 Glendale, California 91203 Tel: (818) 265-1020 / Fax: (818) 265-1021 Stanley D. Saltzman (SBN 90058) MARLIN & SALTZMAN, LLP 29229 Canwood Street, Suite 208 Agoura Hills, California 91301 Tel: (818) 991-8080 / Fax: (818) 991-8081 Attorneys for Plaintiff ELIAZAR GONZALEZ Jamerson C. Allen (SBN 132866) Scott P. Jang (SBN 260191) JACKSON LEWIS PC 50 California Street, 9th Floor San Francisco, California 94111 Tel: (415) 394-9400 / Fax: (415) 394-9401 Scott C. Lacunza (SBN 186892) JACKSON LEWIS PC 200 Spectrum Center Drive, Suite 500 Irvine, California 92618 Tel: (949) 885-1360 / Fax: (949) 885-1380 Attorneys for Defendant THE WINE GROUP, LLC
SUPERIOR COURT OF THE STATE OF CALIFORNIA
COUNTY OF ALAMEDA
ELIAZAR GONZALEZ; individually, and on behalf of other members of the general public similarly situated and on behalf of other aggrieved employees pursuant to the California Private Attorneys General Act; Plaintiffs,
vs. THE WINE GROUP, LLC, a California corporation; and DOES 1 through 100, inclusive,
Defendant.
) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )
CASE NO.: RG15781726 Honorable Ioana Petrou Department 17
JOINT STIPULATION OF CLASS ACTION AND PAGA SETTLEMENT
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JOINT STIPULATION OF CLASS ACTION AND PAGA SETTLEMENT
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JOINT STIPULATION OF CLASS ACTION AND PAGA SETTLEMENT
This Joint Stipulation of Class Action and PAGA Settlement (“Joint Stipulation of Settlement”
or “Settlement”) is made and entered into by and between Plaintiffs ELIAZAR GONZALEZ and
LINDA PASILLAS (“Plaintiff(s)” or “Class Representative(s)”), individually and on behalf of all
others similarly situated, and Defendant THE WINE GROUP, LLC (“Defendant”). Plaintiffs and
Defendant are collectively referred to herein as “the Parties.”
THE PARTIES STIPULATE AND AGREE as follows:
1. On August 12, 2015, Plaintiff Gonzalez commenced a putative class action and
representative action against Defendant in the Superior Court of California, County of Alameda. The
Class Action Complaint for Damages & Enforcement Under the Private Attorneys General Act,
California Labor Code § 2698, Et Seq. alleged causes of action for: (1) failure to properly pay overtime
wages under Labor Code §§ 510 and 1198; (2) failure to provide compliant meal breaks and associated
premiums under Labor Code §§ 226.7 and 512(a); (3) failure to provide compliant rest breaks and
associated premiums under Labor Code § 226.7; (4) failure to properly pay minimum wages under
Labor Code §§ 1194, 1197, and 1197.1; (5) failure to timely pay final wages under Labor Code §§ 201
and 202; (6) failure to timely pay wages during employment under Labor Code § 204; (7) failure to
provide accurate wage statements under Labor Code § 226(a); (8) failure to maintain payroll records
under Labor Code § 1174(d); (9) failure to reimburse business expenses under Labor Code §§ 2800 and
2802; (10) violation of the California’s Unfair Competition Law (“the UCL”); and (11) violation of the
California Labor Code Private Attorneys General Act, Labor Code §§ 2698, et seq. (“PAGA”). Plaintiff
Gonzalez sought to represent a class of current and former non-exempt employees who worked in
California at any time since August 12, 2011.
2. On October 2, 2015, Defendant filed an answer to the Complaint denying all material
allegations and asserting affirmative defenses.
3. On September 14, 2017, pursuant to stipulation of the Parties and order by the Court
thereon, Plaintiff Gonzalez file the First Amended Class Action complaint for Damages & Enforcement
Under the Private Attorneys General Act, California Labor Code § 2698, Et Seq. (“Operative
Complaint”), which added Plaintiff Pasillas as a named plaintiff.
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4. For purposes of this Settlement, the “Class Period” is August 12, 2011 through the date
of preliminary approval of the Settlement.
5. For purposes of this Settlement, the “Class” or “Class Members” consist of: all current
and former non-exempt employees who were employed by Defendant in California at any time from
August 12, 2011 through the date of preliminary approval of the Settlement.
6. For purposes of this Settlement, “Class Counsel” means LAWYERS for JUSTICE, PC
and MARLIN & SALTZMAN, LLP.
7. For purposes of this Settlement, “Covered Workweeks” means the number of workweeks
a Class Member was employed by Defendant as a non-exempt employee in California during the Class
Period.
8. For purposes of the Settlement, “Defendant’s Counsel” means JACKSON LEWIS P.C.
9. Solely for purposes of settling this case, the Parties and their respective counsel stipulate
and agree that the requisites for establishing class certification with respect to the Class Members have
been met and are met. More specifically, the Parties stipulate and agree that:
a. The Class is ascertainable and so numerous as to make it impracticable to join all
Class Members.
b. There are common questions of law and fact including, but not limited to, the
following:
i. Whether or not Defendant paid proper wages to the Class;
ii. Whether or not Defendant provided compliant meal periods and associated
premium pay to the Class;
iii. Whether or not Defendant provided compliant rest periods and associated
premium pay to the Class;
iv. Whether or not Defendant timely paid compensation and associated
waiting time penalties available under California Labor Code § 203;
v. Whether or not Defendant provided accurate itemized statements to the
Class;
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vi. Whether or not Defendant engaged in unlawful or unfair business
practices affecting the Class in violation of California Business and
Professions Code §§ 17200-17208; and
vii. Whether or not Plaintiffs and the Class are entitled to injunctive and/or
declaratory relief.
c. Plaintiffs’ claims are typical of the claims of the Class Members.
d. Plaintiffs and Class Counsel will fairly and adequately protect the interests of the
Class.
e. The prosecution of separate actions by individual members of the Class would
create the risk of inconsistent or varying adjudications, which would establish incompatible standards of
conduct.
f. With respect to the Class, questions of law and fact common to the members of
the Class predominate over any questions affecting any individual member in such Class, and that a
class action is superior to other available means for the fair and efficient adjudication of the controversy.
10. Defendant denies any liability or wrongdoing of any kind whatsoever associated with the
claims alleged in the Complaint, and Defendant further denies that, for any purpose other than settling
this lawsuit, the action is appropriate for class or representative treatment. With respect to Plaintiff’s
claims, Defendant contends, among other things, that Plaintiff and the Class Members have been paid
proper wages, have been provided all required meal and rest periods and associated premium payment,
have been paid timely wages and associated waiting time penalties, and have been provided with
accurate itemized wage statements. Defendant contends, among other things, that they maintained
accurate payroll records and have complied at all times with the California Labor Code and the
applicable Wage Orders of the Industrial Welfare Commission. Furthermore, with respect to all claims,
Defendant contends that they have complied at all times with the California Business and Professions
Code.
11. It is the desire of the Parties to fully, finally, and forever settle, compromise, and
discharge all disputes and claims arising from or related to the Operative Complaint.
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12. Class Counsel has conducted a thorough investigation into the facts of this class action
case, including an extensive review of relevant documents, and has diligently pursued an investigation
of the claims of the Class against Defendant. Based on its own independent investigation and
evaluation, Class Counsel is of the opinion that the Settlement with Defendant for the consideration and
on the terms set forth in this Joint Stipulation of Settlement is fair, reasonable, and adequate and is in the
best interest of the Class in light of all known facts and circumstances, including the risk of significant
delay, the risk the Class will not be certified by the Court, defenses asserted by Defendant, and
numerous potential appellate issues. Defendant and Defendant’s Counsel also agree that the Settlement
is fair and in the best interest of the Class.
13. The Parties agree to reasonably cooperate and take all steps necessary and appropriate to
obtain preliminary and final approval of this settlement.
14. This Settlement provides for a non-reversionary process requiring Defendant to pay a
maximum total payment under the Settlement of $6,500,000 (“Gross Settlement Amount”), which
includes the Net Settlement Amount (to be distributed to Class Members according to a specified
formula based on Covered Workweeks), the LWDA Payment, all Plaintiffs’ attorneys’ fees and
costs/expenses, the service payment to the Plaintiffs, the employer’s share of taxes and contributions
with respect to the wages portion of Individual Settlement Shares, the costs of settlement administration,
and any other payments provided by this Settlement. It is understood and agreed that Defendant’s
maximum total liability under this Settlement shall not exceed the Gross Settlement Amount.
TERMS OF SETTLEMENT
15. NOW THEREFORE, in consideration of the mutual covenants, promises and agreements
set forth herein, the Parties agree, subject to the Court’s approval, as follows:
a. It is agreed by and among the Class and Defendant that this case and the Released
Claims shall be settled and compromised as between the Class and Defendant, subject to the terms and
conditions set forth in this Settlement and the approval of the Court.
b. Effective Date: The terms of settlement embodied in this Settlement shall become
effective when all of the following events have occurred: (i) this Joint Stipulation of Settlement has been
executed by all Parties and their respective counsel; (ii) the Court has given preliminary approval to the
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Settlement; (iii) the notice has been given to the Class, providing them with an opportunity to dispute
their Covered Workweeks a stated in their Class Notice, to opt out of the Settlement, or to object to the
Settlement; (iii) the Court has held a final approval hearing and entered a final order and judgment
certifying the Class and approving this Settlement; and (iv) the later of the following events: sixty-five
(65) calendar days following notice of entry of the Court’s final order approving the Settlement; or if
any appeal, writ or other appellate proceeding opposing this Settlement has been filed within sixty-five
(65) calendar days following notice of entry of the Court’s final order approving the Settlement, then
when any appeal, writ or other appellate proceeding opposing the Settlement has been resolved finally
and conclusively with no right to pursue further remedies or relief. In this regard, it is the intention of
the Parties that the Settlement shall not become effective until the Court’s order approving the
Settlement is completely final, and there is no further recourse by an appellant or objector who seeks to
contest the Settlement.
c. Net Settlement Amount: The Net Settlement Amount shall be calculated by
deducting from the Gross Settlement Amount ($6,500,000) the following sums, subject to approval by
the Court: (1) attorneys’ fees (not to exceed 35% of the Gross Settlement Amount); (2) reasonable
litigation costs/expenses (not to exceed $70,000); (3) a service payment for Plaintiffs Eliazar Gonzalez
and Linda Pasillas (not to exceed $10,000 each); (4) costs of settlement administration (in an amount not
to exceed $25,000), (5) the LWDA Payment; and (6) the employer’s share of taxes and contributions
with respect to the wages portion of the Individual Settlement Shares. Individual Settlement Payments
to the Class Members will be calculated by the Settlement Administrator and paid out of the Net
Settlement Amount as set forth below.
d. Payroll Taxes and Withholdings: The Gross Settlement Amount includes any and
all employee’s share of taxes and withholdings with respect to the wages portion of Individual
Settlement Shares, as well as the employer’s share of taxes and contributions with respect to the wages
portion of Individual Settlement Shares, required by law, including the employer FICA, FUTA, and SDI
contributions. It is understood and agreed that Defendant’s maximum total liability under this
Settlement shall not exceed the Gross Settlement Amount.
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e. Settlement Payments: Each Class Member who does not submit a timely and
valid request to be excluded from the Settlement (“Settlement Class Member”) will be entitled to a pro
rata share of the Net Settlement Amount (“Individual Settlement Share”), as calculated by the
Settlement Administrator. The Individual Settlement Share will be determined by comparing the
individual Class Member’s Covered Workweeks to the total Covered Workweeks of the Settlement
Class. Class Members will be paid their respective Individual Settlement Share, after reduction for the
employee’s share of taxes and withholdings with respect to the portion of the Individual Settlement
Share that is allocated toward wages (the net payment is their “Individual Settlement Payment”).
Individual Settlement Payments will be distributed by the Settlement Administrator by mail to the
Settlement Class Members.
f. Tax Allocation of Individual Settlement Shares: The Parties have agreed that all
Individual Settlement Shares will be allocated as follows: 1/3 to wages; 1/3 to interest; and 1/3 to all
penalties. Appropriate federal, state and local withholding taxes will be taken out of the wages portion,
and each Settlement Class Member will receive an IRS Form W-2 with respect to this portion of the
Individual Settlement Share. The employer’s share of taxes and contributions will be paid as set forth
above, including but not limited to the Defendant’s FICA and FUTA contributions. IRS Forms 1099
will be issued to each Settlement Class Member reflecting the payments for penalties and interest.
Settlement Class Members are solely responsible to pay appropriate taxes due on any amount paid to
them under the Settlement. To the extent required by law, IRS Forms 1099 and W-2 will be issued to
each Settlement Class Member with respect to such payments.
g. Settlement Payments Do Not Trigger Additional Benefits: All payments made to
Settlement Class Members under this Settlement, including and not limited to Individual Settlement
Payments, shall be deemed to be paid to such Settlement Class Member solely in the year in which such
payments actually are received by the Settlement Class Members. It is expressly understood and agreed
that the receipt of payment under this Settlement will not entitle any Settlement Class Member to
additional compensation or benefits under any company bonus, contest or other compensation or benefit
plan or agreement in place during the period covered by the Settlement, nor will it entitle any Settlement
Class Member to any increased retirement, 401(k) benefits or matching benefits or deferred
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compensation benefits. It is the intent that the payments provided for in this Settlement are the sole
payments to be made by Defendant to the Settlement Class Members, and that the Settlement Class
Members are not entitled to any new or additional compensation or benefits as a result of having
received the payments under the Settlement (notwithstanding any contrary language or agreement in any
benefit or compensation plan document that might have been in effect during the period covered by this
Settlement).
h. Attorneys’ Fees and Costs: Subject to approval by the Court, Defendant will not
object to Class Counsel’s application for attorney’s fees not to exceed 35% of the Gross Settlement
Amount and litigation costs/expenses not to exceed $70,000.00.
i. Service Payments for Class Representatives: Subject to Court approval,
Defendant will not object to Class Counsel’s application for a Service Payment of up to $10,000 each
for Plaintiffs Eliazar Gonzalez and Linda Pasillas for their service as the Class Representative. It is
understood that this Service Payments are in addition to the Individual Settlement Payment to which the
Class Representatives are entitled to along with the other Settlement Class Members. Defendant or the
Settlement Administrator will issue an IRS Form 1099 for the Service Payments to the Class
Representatives. The Class Representatives will be individually responsible for correctly characterizing
this compensation on their personal income tax returns for tax purposes and for paying any taxes on the
amounts received. Should the Court approve Service Payments to the Class Representatives in amounts
less than that set forth above, the difference between the lesser amount(s) approved by the Court and the
Service Payment amount(s) set forth above shall be a part of the Net Settlement Amount. The
Settlement Administrator will pay the Court-approved Class Representative Service Payments within
twenty (20) calendar days of the Effective Date of the Settlement.
j. Settlement Administrator: The Settlement Administrator will be mutually
agreeable to the Parties and approved by the Court.
k. PAGA Payment: Parties have agreed that the amount of $100,000 from the Gross
Settlement Amount is allocated toward penalties recoverable under PAGA (“PAGA Payment”), with
75% (or $75,000) to be paid to the Labor and Workforce Development Agency (“LWDA Payment”) and
25% (or $25,000) to be a part of the Net Settlement Amount for distribution to the Settlement Class
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Members on a pro rata basis. The Settlement Administrator will pay the LWDA Payment to the Labor
and Workforce Development Agency (“LWDA”) within twenty (20) calendar days of the Effective Date
of the Settlement.
l. Funding of Settlement Account: Within ten (10) calendar days of the Effective
Date of the Settlement, Defendant will fund the Gross Settlement Amount into the settlement account to
be established by the Settlement Administrator.
m. Mailing of Individual Settlement Payments: The Settlement Administrator shall
cause the Individual Settlement Payments to be mailed to the Settlement Class Members within twenty
(20) calendar days of the Effective Date of the Settlement.
n. Notice of Class Action Settlement: Each Class Member will be provided with
pre-printed information, in substantially the same form as the Notice of Class Action Settlement that is
attached hereto as “Exhibit A” (“Class Notice”), based on Defendant’s records. The Class Notice shall
state, among other things, the Class Member’s Covered Workweeks and the estimated Individual
Settlement Share. The pre-printed information based on Defendant’s records shall be presumed to be
correct.
o. Resolution of Disputes: A Class Member may dispute the pre-printed information
in the Class Notice as to his or her Covered Workweeks. Such a dispute must be submitted in
conformity with the requirements set forth in the Class Notice, and must be submitted within forty-five
(45) calendar days from the original date of mailing the Class Notice (“Response Deadline”) (based on
the postmark). Unless a disputing Class Member submits documentary evidence in support of his or her
dispute, the records of the Defendant will be determinative. If the Parties’ counsel cannot resolve the
dispute informally, the matter will be referred to the Settlement Administrator. The Settlement
Administrator will review Defendant’s records and any information or documents submitted by the
Class Member and issue a non-appealable decision regarding the dispute. No disputes will be honored
if they are postmarked after the Response Deadline, unless the Parties mutually agree to accept the
untimely dispute. Each Class Member is responsible to maintain a photocopy of any documents sent to
the Settlement Administrator and a record of proof of mailing.
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p. Right Of Class Member To Request Exclusion From The Settlement: Any Class
Member may request to be excluded from the Settlement by mailing a written request (“Request for
Exclusion”) within the Response Deadline (based on the postmark) to the Settlement Administrator.
The Request for Exclusion must contain a statement clearly indicating the intention to be excluded from
the Settlement, in substantially the form as follows:
“I WISH TO BE EXCLUDED FROM THE CLASS IN THE ELIAZAR
GONZALEZ v. THE WINE GROUP, LLC CLASS ACTION LAWSUIT,
ALAMEDA COUNTY SUPERIOR COURT CASE NO. RG15781726. I
UNDERSTAND THAT IF I ASK TO BE EXCLUDED FROM THE
SETTLEMENT, I WILL NOT RECEIVE ANY MONEY FROM THE
SETTLEMENT.”
Any Request for Exclusion must also include the name, current address, last four digits of the
Class Member’s Social Security number or employee ID number, current telephone number, and
signature of the Class Member requesting exclusion. Any such request must be made in accordance
with the terms of the Class Notice. Any Class Member who timely requests exclusion from the
Settlement in compliance with these requirements (i) shall not have any rights under this Settlement,
including without limitation, standing to object to the Settlement; (ii) shall not be entitled to receive any
payments under this Settlement; and (iii) shall not be bound by this Settlement or the Court’s Final
Approval Order and Judgment.
q. Right of Class Member To Object To The Settlement: Any Class Member may
object to the Settlement, as long as he or she has not submitted a request to be excluded from the
Settlement. To object, the Class Member must file a written objection and must send copies of the same
to the Parties’ counsel as set forth in the Class Notice. Class Members must file and serve their
objections within the Response Deadline (based on the postmark). Class Members who fail to file and
serve timely, written objections in the manner specified above, and as set forth in the Class Notice, shall
be deemed to have waived any objections and shall be foreclosed from making any objection (whether
by appeal or otherwise) to the Settlement, unless otherwise ordered by the Court. Class Counsel and
Defendant’s Counsel may, at least five (5) calendar days (or some other number of days as the Court
shall specify) before the final approval hearing, file responses to any written objections submitted to the
Court.
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SETTLEMENT ADMINISTRATION
16. Subject to the Court’s approval, the Parties have agreed to the appointment of Simpluris,
Inc. to perform the customary duties of settlement administration. The Settlement Administrator will
mail the Class Notice to the Class Members.
17. The Settlement Administrator will independently review the Covered Workweeks
attributed to each Class Member and will calculate the amounts due to each Class Member in
accordance with this Settlement. The Settlement Administrator shall report, in summary or narrative
form, the substance of its findings to the Parties. The Settlement Administrator shall be granted
reasonable access to Defendant’s relevant records in order to perform its duties.
18. In accordance with the terms of this Settlement, and upon receipt of funds from
Defendant, the Settlement Administrator will issue and send out the Individual Settlement Payment
checks to the Settlement Class Members. All disputes relating to the Settlement Administrator’s
performance of its duties shall be referred to the Court, if necessary, which will have continuing
jurisdiction over the terms and conditions of this Settlement until all payments and obligations
contemplated by this Settlement have been fully carried out.
ATTORNEYS’ FEES AND COSTS
19. In consideration for resolving this matter and in exchange for the release of all claims by
the Class Members, and subject to approval by the Court, Defendant will not object to Class Counsel’s
application for attorney’s fees not to exceed 35% of the Gross Settlement Amount and litigation costs
not to exceed $70,000. The amounts set forth above will cover all work performed and all fees and costs
incurred to date, and all work to be performed and all fees and costs to be incurred in connection with
obtaining the approval by the Court of this Settlement and administration of the Settlement. Should
Class Counsel request a lesser amount and/or the Court approve a lesser amount(s) of attorneys’ fees
and/or attorneys’ costs, the difference between the lesser amount(s) and the maximum amount set forth
above shall be added to the Net Settlement Amount. The attorneys’ fees and costs approved by the
Court shall be paid to Class Counsel within twenty (20) calendar days following the Effective Date of
the Settlement.
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NOTICE TO THE CLASS & NOTICE OF SETTLMENT PAYMENT
20. The Class Notice shall be sent by the Settlement Administrator to the Class Members by
first class mail. Any returned envelopes from this mailing with forwarding addresses will be utilized by
the Settlement Administrator to forward the Notices to the Class.
a. Within thirty (30) calendar days from the date of preliminary approval of this
Settlement by the Court, Defendant shall provide to the Settlement Administrator a database (“Class
Data List”) containing the following information for each Class Member: name, last known address,
last known telephone number, social security number and employee ID number, start and end dates of
employment as a non-exempt employee in California during the Class Period, and Covered Workweeks,
and such other information as may be necessary to independently review the Covered Workweeks
attributed to each Class Member. This Class Data List shall be based on Defendant’s payroll and other
business records and shall be provided in a format reasonably acceptable to the Settlement
Administrator. Defendant agrees to consult with the Settlement Administrator prior to the production
date of the Class Data List, to ensure that the format will be reasonably acceptable to the Settlement
Administrator. The Settlement Administrator will run a check of the Class Members’ addresses, as
reflected in the Class Data list provided by Defendant, against those on file with the U.S. Postal
Service’s National Change of Address List; this check will be performed only once per Class Member
by the Settlement Administrator. Absent mutual written agreement of counsel for the Parties or Court
order, the Settlement Administrator will keep the Class Data List and any database prepared based
thereon confidential and use them only for the purposes described herein.
b. Defendant and Plaintiff agree that, during the settlement negotiations, the Gross
Settlement Amount was determined in part based on Defendant’s representation that there are
approximately 200,000 Covered Workweeks during the Class Period for the Class. If the number of
Covered Workweeks increases by more than 10% by the date of preliminary approval of the Settlement,
Plaintiffs may, but are not obligated to, void the Settlement by giving written notice to Defendant’s
Counsel within five (5) calendar days after the Settlement Administrator confirms the total Covered
Workweeks for the Class for the Class Period.
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c. Within fifteen (15) calendar days after the Class Data List is provided to the
Settlement Administrator, the Settlement Administrator will mail the Class Notice to the Class Members
by first class United States mail.
d. Class Notices returned to the Settlement Administrator as non-deliverable before
the Response Deadline (based on the postmark) shall be resent to the forwarding address, if any, on the
returned envelope. A returned Class Notice will be forwarded only once per Class Member by the
Settlement Administrator. If there is no forwarding address, the Settlement Administrator will do a
skip-trace search for a new address using the Class Member’s Social Security number, and the return
Class Notice will be resent to any new address that is located by way of skip-trace, if any; this search
and re-mailing will be performed only once per Class Member by the Settlement Administrator. Upon
completion of these steps by the Settlement Administrator, Defendant and the Settlement Administrator
shall be deemed to have satisfied their obligation to provide the Class Notice to the affected Class
Member. The affected Class Member shall remain a member of the Class and shall be bound by all the
terms of the Settlement and the Court’s Final Approval Order and Judgment.
e. The Settlement Administrator will not send any reminder notices of any nature to
the Class Members, unless otherwise ordered by the Court.
f. Class Counsel shall provide to the Court, at least five (5) calendar days prior to
the final approval hearing, a declaration by the Settlement Administrator of due diligence and proof of
mailing with regard to the mailing of the Class Notice to the Class Members.
ADMINSTRATION OF SETTLEMENT PAYMENTS
21. Individual Settlement Payment checks shall remain valid and negotiable for one hundred
and twenty (120) calendar days from the date of their issuance, and shall be cancelled if they are not
cashed, deposited, or otherwise negotiated within the 120-day deadline, and the Class Member’s claims
will remain released by the Settlement. Individual Settlement Payment checks which have expired will
not be reissued.
22. Funds from returned, cancelled or non-timely cashed Individual Settlement Payment
checks plus any accrued interest that has not otherwise been distributed (together, “Unused Funds”),
shall be transmitted in conformity with California Code of Civil Procedure section 384, as follows: 25%
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to the State Treasury for deposit in the Trial Court Improvement and Modernization Fund; and 75% to
the State Treasury for deposit into the Equal Access Fund of the Judicial Branch. The Settlement
Administrator shall prepare a report regarding the distribution of the Unused Funds pursuant to
California Code of Civil Procedure § 384, and the report shall be presented to the Court in conformity
with the Court’s orders.
23. Upon completion of its calculation of Individual Settlement Payments, the Settlement
Administrator shall provide Class Counsel and Defendant’s Counsel with a report listing the amount of
all payments to be made to each Settlement Class Member. Proof of payment will be provided to Class
Counsel and Defendant’s Counsel (without disclosing identifying information of the Settlement Class
Members), and filed with the Court as ordered by the Court.
RELEASE BY THE CLASS
24. Upon the Effective Date, and except as to such rights or claims as may be created by this
Settlement, the Class Representatives and each Class Member who has not submitted a valid and timely
request to be excluded from the Settlement (i.e. Settlement Class Members) each fully release and
discharge Defendant, its present and former parent companies, subsidiaries, related or affiliated
companies, and each of their respective owners, shareholders, officers, directors, employees, members,
managers, agents, attorneys, insurers, successors and assigns, and any individual or entity which could
be jointly liable with Defendant and its respective present and former parent companies, subsidiaries,
related or affiliated companies, and each of their respective owners, shareholders, officers, directors,
employees, members, managers, agents, attorneys, insurers, successors and assigns (collectively the
“Released Parties”) from all claims and/or causes of action arising from or related to this case under any
federal, state or local law or administrative order that were plead in this case based on the facts alleged
in the Operative Complaint, including but not limited to the failure to pay wages, the failure to pay
minimum wages, the failure to pay overtime compensation, the failure to provide meal periods, the
failure to provide rest periods, the failure to pay waiting-time penalties, the failure to timely pay wages
during employment, the failure to keep and maintain accurate payroll records, the failure to provide
accurate itemized wage statements, the failure to reimburse business expenses, and any other claims
whatsoever that were alleged in this case, including without limitation all related claims for restitution
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and other equitable relief under Business and Professions Code § 17200 et seq., conversion, liquidated
damages, punitive damages, penalties, penalties under the Labor Code Private Attorneys General Act of
2004, and any other related penalties of any nature, for the period of August 12, 2011 through the date of
final approval of the Settlement (collectively the “Released Claims”).
CLASS REPRESENTATIVES’ INDIVIDUAL RELEASE
25. The Class Representatives agree that the consideration set forth in this Joint Stipulation
of Settlement, including the Service Payments set forth above, represent full settlement of all claims that
were or could have been raised against Defendant, its present and former parent companies, subsidiaries,
related or affiliated companies, and each of their respective owners, shareholders, officers, directors,
employees, members, managers, agents, attorneys, insurers, successors and assigns, and any individual
or entity which could be jointly liable with Defendant and its respective present and former parent
companies, subsidiaries, related or affiliated companies, and each of their respective owners,