Askar v. Health Providers Choice, Inc.

CourtDistrict Court, N.D. California
DecidedOctober 18, 2021
Docket5:19-cv-06125
StatusUnknown

This text of Askar v. Health Providers Choice, Inc. (Askar v. Health Providers Choice, Inc.) is published on Counsel Stack Legal Research, covering District Court, N.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Askar v. Health Providers Choice, Inc., (N.D. Cal. 2021).

Opinion

1 2 3 UNITED STATES DISTRICT COURT 4 NORTHERN DISTRICT OF CALIFORNIA 5 SAN JOSE DIVISION 6 7 MAHA ASKAR, Case No. 19-cv-06125-BLF

8 Plaintiff, ORDER GRANTING MOTION FOR 9 v. FINAL APPROVAL OF CLASS ACTION SETTLEMENT AND 10 HEALTH PROVIDERS CHOICE, INC., MOTION FOR ATTORNEY'S FEES 11 Defendant. [Re: ECF Nos. 41, 42]

12 13 Before the Court are (1) Plaintiff’s Motion for Final Approval of Class Action Settlement; 14 and a Motion for Attorney’s Fees, Costs, Service Award, and Settlement Administration 15 Expenses. See ECF Nos. 41 (“Fees Mot.”), 42 (“Final App. Mot.”). No oppositions have been 16 filed and there are no objectors. The Court held a hearing on the motions on October 7, 2021. For 17 the reasons stated on the record and explained below, the Court GRANTS both motions. 18 I. BACKGROUND 19 Plaintiff Maha Askar filed this action on September 26, 2019, asserting violations of the 20 California Labor Code, California Business & Professions Code, and the federal Fair Labor 21 Standards Act (“FLSA”), on behalf of herself and others similarly situated. See ECF No. 1 22 (“Compl.”). Plaintiff alleged that Defendant Health Providers Choice, Inc., employed numerous 23 non-exempt hourly health care professionals for travel assignments at health care providers across 24 the country. Id. ¶ 11. HPC allegedly paid those traveling health care professionals a weekly per 25 diem in addition to their hourly pay, but failed to include that per diem in the regular rates of pay 26 when calculating overtime and double time. Id. ¶¶ 13-17. Plaintiff sought to certify a class of all 27 non-exempt hourly employees employed by HPC in California who worked one or more 1 answered the complaint on November 11, 2019. See ECF No. 15. Plaintiff then filed an amended 2 complaint, see ECF No. 26, which Defendant also answered, see ECF No. 28. The Parties notified 3 the Court of a settlement on September 23, 2020. See ECF No. 34. 4 On March 4, 2021, the Court granted preliminary approval to the Parties’ settlement 5 (“Settlement Agreement”). See ECF No. 39. The Settlement Agreement defines the Settlement 6 Class as follows: 7 All non-exempt hourly employees employed by Defendant in California at any time from September 26, 2015 through the date the 8 Court enters an order granting preliminary approval of the Settlement who worked one or more workweeks in which they were paid 9 overtime and received per diem pay and/or a monetary bonus. 10 ECF No. 36-5 ¶ 2. Defendant has agreed to provide a non-reversionary Settlement Fund of 11 $90,000. Settlement Agreement ¶ 5. The Settlement Fund is inclusive of attorneys’ fees and costs 12 to Plaintiff’s counsel, individual settlement payments to the Settlement Class, a service award to 13 Plaintiff, and the Settlement Administrator’s fees and costs. Id. Employer-side payroll taxes, if 14 any, are not to be paid from the Settlement Fund. Id. 15 Under the Settlement Agreement, each member of the Settlement Class will receive two 16 checks. One check with 95% of his or her settlement payment will be consideration for release of 17 the Class Claims. Settlement Agreement ¶ 12. A second check with 5% of his or her settlement 18 payment will be labeled “FLSA Settlement Payment.” Id. Cashing the second check will 19 represent the Class Member’s opt-in to the FLSA class and result in a release of that member’s 20 FLSA claims. Id. Members of the Settlement Class who do not cash the FLSA check will not 21 opt-in to the FLSA collective. Id. A supplemental FLSA notice explaining the effect of cashing 22 the FLSA check will be sent to the same 28 individuals who are in the Settlement Class. See ECF 23 No. 45. 24 Following preliminary approval, the Settlement Administrator provided notice by mail to 25 each of the 28 class members. Final. App. Mot. at 7. When two notices were returned without a 26 forwarding address, the Settlement Administrator successfully obtained updated addresses and 27 remailed the notices. Id. The Settlement Administrator did not receive any objections, and no 1 On October 7, 2021, the Court heard both motions and indicated that it would grant final 2 approval and the request for attorney’s fees and related expenses, pending submission of a 3 supplemental FLSA notice. 4 II. MOTION FOR FINAL APPROVAL OF CLASS ACTION SETTLEMENT 5 A. Rule 23 Certification Requirements 6 In order to grant final approval of the class action settlement, the Court must determine 7 that (a) the class meets the requirements for certification under Federal Rule of Civil Procedure 23, 8 and (b) the settlement reached on behalf of the class is fair, reasonable, and adequate. See Staton 9 v. Boeing Co., 327 F.3d 938, 952 (9th Cir. 2003) (“Especially in the context of a case in which the 10 parties reach a settlement agreement prior to class certification, courts must peruse the proposed 11 compromise to ratify both the propriety of the certification and the fairness of the settlement.”). 12 i. The Class Meets the Requirements for Certification Under Rule 23 13 A class action is maintainable only if it meets the four requirements of Rule 23(a):

14 (1) the class is so numerous that joinder of all members is impracticable; 15 (2) there are questions of law or fact common to the class; 16 (3) the claims or defenses of the representative parties are 17 typical of the claims or defenses of the class; and

18 (4) the representative parties will fairly and adequately protect the interests of the class. 19 20 Fed. R. Civ. P. 23(a). In a settlement-only certification context, the “specifications of the Rule – 21 those designed to protect absentees by blocking unwarranted or overbroad class definitions – 22 demand undiluted, even heightened, attention.” Amchem Prods., Inc. v. Windsor, 521 U.S. 591, 23 620 (1997). 24 In addition to satisfying the Rule 23(a) requirements, “parties seeking class certification 25 must show that the action is maintainable under Rule 23(b)(1), (2), or (3).” Amchem, 521 U.S. at 26 614. Askar seeks certification under Rule 23(b)(3), which requires that (1) “questions of law or 27 fact common to class members predominate over any questions affecting only individual 1 adjudicating the controversy.” Fed. R. Civ. P. 23(b)(3). 2 When it granted preliminary approval of this class action settlement, this Court concluded 3 that these requirements were satisfied. See ECF No. 39. The Court is not aware of any facts that 4 undermine that conclusion, but reviews briefly each of the Rule 23 requirements again. 5 Under Rule 23(a), the Court concludes that joinder of all 28 class members would be 6 impracticable under the circumstances of this case. Floyd v. Saratoga Diagnostics, Inc., 2021 WL 7 2139343, at *3 (N.D. Cal. May 26, 2021) (“[C]lasses of 20-40 may or may not be big enough 8 depending on the circumstances of each case.”). The commonality requirement is met because the 9 key issue in the case is the same for all class members—whether Defendant improperly excluded 10 from overtime calculations per diem and bonus payments. Askar’s claims are typical of those of 11 the Settlement Class, as her overtime calculations did not include per diem or bonus payments. 12 See Hanlon, 150 F.3d at 1020 (typicality requires that the claims of the class representative are 13 “reasonably co-extensive with those of absent class members”).

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Bluebook (online)
Askar v. Health Providers Choice, Inc., Counsel Stack Legal Research, https://law.counselstack.com/opinion/askar-v-health-providers-choice-inc-cand-2021.