Haro v. Walmart Inc.

District Court, E.D. California·Decided March 18, 2024·No. 1:21-cv-00239·Unknown

Opinion

AMADO HARO and ROCHELLE No. 1:21-cv-00239-NODJ-SKO ORTEGA, On Behalf of Themselves and All Others Similarly Situated, ORDER GRANTING UNOPPOSED MOTION FOR Plaintiff, PRELIMINARY APPROVAL OF CLASS ACTION SETTLEMENT v. AND CONDITIONAL CERTIFICATION OF Defendant. (Doc. 127)

This matter is before the Court on the unopposed motion for preliminary approval of a class action settlement filed on December 15, 2023, by Plaintiffs Amado Haro and Rochelle Ortego (“Plaintiffs”) (Doc. 127).1 For the reasons set forth below, the Court grants preliminary approval of the proposed class action settlement.2

I. BACKGROUND A. Factual Background In 2020, Defendant Walmart, Inc. (“Walmart”) implemented a company-wide policy requiring all hourly paid employees to pass a COVID-19 health screening (the “screening”) before clocking in for a shift. (Doc. 127 at 6). The policy applied in every Walmart store in California, and if employees refused the screening, they were sent home on Level 1 unpaid leave.

1 Under the Class Action Fairness Act (CAFA), 28 U.S.C. § 1715, “[n]ot later than 10 days after a proposed settlement of a class action is filed in court, each defendant that is participating in the proposed settlement shall serve upon the appropriate State official of each State in which a class member resides and the appropriate Federal official, a notice of the proposed settlement[.]” Defendant indicates it intended to file the notice by December 26, 2023. (Doc. 127 at 20-21). 2 On January 4, 2024, the parties consented to the jurisdiction of the U.S. Magistrate Judge. (See Docs. 129-131). (Id.). The policy required all hourly employees to “(1) report to a designated location at a Walmart store, (2) possibly wait in line standing six feet apart from other employees, (3) answer the same questions about whether they had any signs or symptoms of the Coronavirus, (4) have their temperature taken, (5) wear a Walmart approved mask, and (6) pass the health examination before clocking-in for the day.” (Doc. 127 at 7). Walmart expected employees to clock in as normal after completing the screening. (Id.). Time clocks were located at varying distances from the screening area, with some sitting “hundreds of feet away.” (Doc. 127 at 7 (citing Doc. 42)). Walmart paid employees an additional five minutes per shift to compensate for the time spent waiting in line and undergoing the screening. In this lawsuit, Plaintiff contends that five minutes’ worth of pay was insufficient to compensate employees for time spent on the screening process because it did not account for the time spent walking from the testing area to the time clocks. (Doc. 127 at 7). Walmart counters that this time was not compensable, or if it was, the five minutes Walmart automatically paid was sufficient, and any employee could have reported the additional time to Walmart and received payment. (Doc. 127 at 7). B. Procedural Background Plaintiffs filed this lawsuit on behalf of themselves and a class of similarly situated consumers, alleging a (1) failure to pay all wages, (2) failure to pay overtime, (3) failure to provide itemized wage statements, and a (4) failure to provide wages upon separation of employment, all in violation of the California Labor Code, as well as unfair competition under the California Business and Professions Code. (Doc. 1). Plaintiffs filed this lawsuit as a collective action under the Fair Labor Standards Act (29 U.S.C. § 201) and as a Rule 23 class action under the California Labor Code. (Id.). In the related case Haro v. Walmart Inc., Alameda County Super. Ct. Case No. 22cv008823 (the “State Court Action”), Haro seeks civil penalties under the Private Attorneys General Act (“PAGA”) based on the same alleged violations on behalf of all nonexempt employees who went through at least one COVID-19 screening in California since January 17, 2021. (Doc. 127-1 at 2-3). The parties engaged in a substantive discovery process, including 31 depositions, six expert reports, and thousands of pages of traditional and electronic discovery. (Doc. 127 at 8 (citing Doc. 127-2 at 5). Walmart filed a motion for summary judgment on August 2, 2022. (Doc. 31.) Plaintiffs filed a response (Doc. 36), and a motion to continue the motion for summary judgment (Doc. 34). On August 15, 2022, Plaintiffs filed a motion to certify a class under Rule 23 (Doc. 43) and a motion for conditional certification under the Fair Labor Standards Act (Doc. 41). Defendant opposed both motions (Docs. 58, 59). This Court granted conditional certification of the FLSA collective on February 27, 2023. (Doc. 90). Defendant filed objections which remain pending under this Court’s order (Doc. 117) staying the case pending the parties’ mediation. Plaintiffs’ counsel also moved to be appointed interim class counsel. (Doc. 72). The Court issued findings and recommendations (Doc. 91) that Plaintiffs’ motion be granted. Defendant moved to strike the expert declaration of Dr. Drogin (Doc. 60), and Plaintiffs moved to strike the expert declarations of Dr. Woods (Doc. 99) and the declarations submitted by Defendant in opposition to Plaintiffs’ motion for class certification (Doc. 109). The parties attended a full-day mediation led by mediator Antonio Piazza on September 11, 2023. (Doc. 127 at 9). The process culminated in Mr. Piazza creating a mediator’s proposal, which both sides accepted. (Id.). A. Settlement Fund The parties have agreed to a Gross Settlement Amount totaling $5,200,000, to be paid according to the terms of the Settlement Agreement. (Doc. 127-1 at 4-5). This amount includes (1) all individual settlement payments to participating class members, (2) PAGA penalties, (3) general release payments, (4) attorneys’ fees and costs to class counsel and (5) settlement administration costs to the settlement administrator. (Doc. 127-1 at 4-5). No part of the Gross Settlement Amount will revert to the Defendant. (Doc. 127-1 at 4-5). The parties propose $50,000 will be paid to settle all individual and representative claims brought under PAGA. (Doc. 127-1 at 14). Pursuant to PAGA, 75% of this amount (totaling $37,500) will be paid to the Labor and Workforce Development Agency and 25% (totaling $12,500) will remain in the Settlement Fund. (Doc. 127-1 at 14). The Settlement Administrator will be paid for the reasonable costs of administering the Settlement Agreement, which is not to exceed $432,522, and these funds will be deducted from the Settlement Fund. (Doc. 127-1 at 14). B. The Class and Settlement Period For settlement purposes, there are three types of class members: (1) the California Class Members, (2) the FLSA Class Members, and (3) the Dual Class Members, who are a member of both the California Class and the FLSA Class.3 (See Doc. 127-1 at 12-13). Collectively, these are the “Class Members.” The California Class Members are all individuals who worked at a Walmart retail store in California as a nonexempt store employee at any point between April 10, 2020, and February 6, 2023, who do not submit a valid Request for Exclusion from the California Class. (Id.). The FLSA Class Members are any Class Members who submit an FLSA opt-in form by the Response Deadline4 and every Class Member who previously submitted an opt-in form and who does not submit a valid Request for Exclusion from the FLSA Class. (Id.). The FLSA Class does not include any employee who worked solely outside of California who did not previously opt-in to the FLSA Class. (Doc. 127-1 at 5-6). To determine each Class Member’s individual settlement amount, the Settlement Administrator will aggregate the number of Pay Period Units for each Class Member and the total number of Pay Period Units for all Class Members. Pay Period Units are assigned as follows: (1) California

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Haro v. Walmart Inc., (E.D. Cal. 2024).

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