Hall v. Best Buy Co.

274 F.R.D. 154, 2011 U.S. Dist. LEXIS 31220, 2011 WL 1103755
CourtDistrict Court, E.D. Pennsylvania
DecidedMarch 24, 2011
DocketCivil Action No. 07-cv-4724
StatusPublished
Cited by19 cases

This text of 274 F.R.D. 154 (Hall v. Best Buy Co.) is published on Counsel Stack Legal Research, covering District Court, E.D. Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hall v. Best Buy Co., 274 F.R.D. 154, 2011 U.S. Dist. LEXIS 31220, 2011 WL 1103755 (E.D. Pa. 2011).

Opinion

MEMORANDUM OPINION AND ORDER

RUFE, District Judge.

The Parties in this putative class action alleging violations of Pennsylvania wage and labor laws have jointly moved for final approval of a negotiated settlement agreement and allocation among class members [doc. no. 79], and Plaintiffs have moved for approval of Plaintiffs’ request for attorneys’ fees and expenses and enhancement awards for the class representatives Jason Hall, Samuel Keck and Paul Eisenhower [doc no. 80]. After multiple hearings on the fairness of the settlement and adequacy of notice, and for the reasons that follow, the Court will: (1) certify the settlement class; (2) approve the Agreement, finding that pursuant to Rule 23(e) of the Federal Rules of Civil Procedure, its terms are fair, reasonable and adequate, and that the class received both reasonable and the best practicable notice of the settlement; and (3) approve Plaintiffs’ request for attorneys fees and enhancement awards, finding both reasonable.

I. Background

A. The Litigation

On October 17, 2007, Plaintiff Jason Hall filed a complaint against Best Buy Co., Inc. in the Court of Common Pleas of Philadelphia County, Pennsylvania, alleging breach of contract, unjust enrichment, and violations of Pennsylvania’s Wage Payment and Collection Law (‘WPCL”),1 on behalf of a class defined as all those employed by Best Buy between October 15, 2003 and the time of filing and subject to the alleged unlawful employment practices. On November 8, 2007, Defendant Best Buy timely removed the state court action to this Court pursuant to 28 U.S.C. §§ 1332(d), 1441, 1453 and 1446.2

[159]*159On December 5, 2007, Hall subsequently amended his complaint, adding putative class representatives Samuel Keek and Paul Eisenhower; Defendants BBC Investment Co., BBC Property Co., and Best Buy Stores, L.P. (collectively “Best Buy”); and a claim for violation of the Pennsylvania Minimum Wage Act.3 The Amended Complaint set the class period beginning at October 17, 2003 and continuing until such time as the complained-of practices were eliminated.4 Named Plaintiffs alleged that, in violation of applicable state wage and labor statutes, Best Buy had a consistent policy of failing to compensate in-store hourly employees with either straight-time or overtime pay for off-the-cloek time spent awaiting and undergoing security checks after the end of a shift; denying mandatory meal and rest breaks and failing to compensate for work performed during them; and requiring employees to perform off-the-clock work prior to clocking in and after clocking out, among other allegations.5 Plaintiff Hall alleged that he and other employees were required to wait up to 15 minutes per day for post-shift security checks, depending on whether the shift ended during store hours or after closing.6 Closing-shift employees allegedly endured the lengthiest waits because of Best Buy’s alleged practice of requiring all employees to gather at the front of the store prior to the security checks.7 Plaintiff Keck alleged that management routinely required that he and other employees work through lunch breaks and mandatory 15-minute rest periods without compensation and to perform retail sales work, such as paperwork, after clocking out.8 Finally, Plaintiff Eisenhower alleged that, in addition to uncompensated time spent waiting for security cheeks at a shift’s end, he was uncompensated for waiting periods and shift-work performed prior to clocking in.9

Best Buy has denied Plaintiffs’ allegations and asserted a range of affirmative defenses that, if proved, could entitle them to judgment on Plaintiffs’ claims, limit Plaintiffs’ recovery or prevent certification of the proposed class.10

Following amendment of the Complaint, discovery ensued shortly thereafter, with discovery deadlines extended several times through early 2009.11 The named Plaintiffs and corporate representatives were deposed and documents were produced by the Parties.12 In particular, Best Buy produced paper documents (such as manuals and policies), video recordings, and electronic time[160]*160keeping data. At some point in late 2008, settlement negotiations began and, on February 26, 2009, a proposed conditional settlement agreement was reached, which was memorialized in a Joint Stipulation and Settlement Agreement (the “Settlement Agreement”) in November 2009.13

B. The Settlement Agreement

The Settlement Agreement establishes a total settlement fund of $907,566.14 Of that amount: (1) $592,566, designated by the agreement as the “Net Settlement Amount” is allocated to class members for unpaid wages during closing shifts, with $241,757 allocated to current employees and $350,809 allocated to former employees; (2) $15,000 is allocated for Enhancement Awards for Class Representatives; and (3) a maximum of $300,000, or just over 33% is allocated for class counsels’ fees & expenses.15 Costs of claims administration are borne by Defendants; these costs do not reduce the amounts available to the class.16

The amount designated for individual class members is based on the number of closing shifts worked by that class member during the class period. A closing shift is a shift worked in which the employee clocks in or out after the last customer transaction of the day.17 Under the Agreement, class members are compensated at a rate of $.50/closing shift worked during the class period.18 At the initial final approval hearing, Class Counsel represented that the $0.50 rate was based on both an average wage of $8.00 and an average of five minutes in off-the-clock waiting time discerned through discovery. Employees working five or fewer closing shifts, however, are presumed to have worked five shifts, such that every employee is entitled to a claim of at least $2.50, whether or not they worked a closing shift.19 Participating claimants’ payments are subject to payroll taxes and other payroll withholdings such that the net amount they receive will be lower than the gross claim.20 Unclaimed amounts from the Settlement Fund revert back to Best Buy.21

The Settlement Agreement also provides for limited injunctive relief, requiring Best Buy to modify its Standard Operating Procedure Manual, for at least two years, to include language addressing time-keeping procedures for employees who exit the store after store closing. The agreement requires adoption of language substantially similar to the following:

Free access — add to your briefcase to read the full text and ask questions with AI

Related

SHORT v. QYST INC.
E.D. Pennsylvania, 2022
Xu v. Ran
E.D. Pennsylvania, 2022
GASPER v. SCHULSON COLLECTIVE
E.D. Pennsylvania, 2020
STEVENS v. SEI INVESTMENTS COMPANY
E.D. Pennsylvania, 2020
Galt v. Eagleville Hosp.
310 F. Supp. 3d 483 (E.D. Pennsylvania, 2018)
Moore v. Ulta Salon, Cosmetics & Fragrance, Inc.
311 F.R.D. 590 (C.D. California, 2015)
Zellagui v. MCD Pizza, Inc.
59 F. Supp. 3d 712 (E.D. Pennsylvania, 2014)
In re Certainteed Fiber Cement Siding Litigation
303 F.R.D. 199 (E.D. Pennsylvania, 2014)
Medical Mutual of Ohio v. SmithKline Beecham Corp.
291 F.R.D. 93 (E.D. Pennsylvania, 2013)
Pryor v. Aerotek Scientific, LLC
278 F.R.D. 516 (C.D. California, 2011)

Cite This Page — Counsel Stack

Bluebook (online)
274 F.R.D. 154, 2011 U.S. Dist. LEXIS 31220, 2011 WL 1103755, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hall-v-best-buy-co-paed-2011.