Hartley v. On My Own, Inc.

District Court, E.D. California·Decided August 25, 2020·No. 2:17-cv-00353·Unknown

Opinion

AMBER HARTLEY, No. 2:17-cv-00353-KJM-EFB Plaintiff, ORDER v.

ON MY OWN, INC., et al.,

Defendants.

Plaintiff Amber Hartley requests the court approve the settlement between the parties, as required by California’s Private Attorneys General Act (PAGA), Labor Code § 2698, et seq. For the reasons below, the court GRANTS the request for settlement approval. A. Procedural Background On February 17, 2017, plaintiff Amber Hartley and former plaintiff Janice Taylor1 filed a complaint against their employers, defendants On My Own, Inc., On My Own Community ///// /////

1 Former plaintiff Janice Taylor’s claims were dismissed on June 21, 2019 for failure to prosecute. ECF No. 44. Services, and On My Own Independent Living Services, for violations of the California Labor Code.2 See Compl., ECF No. 1. Specifically, they alleged defendants: (1) fail[ed] to provide their non-exempt employees, including but not limited to in home service providers it calls direct service trainers (“DSTs”) for all hours worked, including overtime compensation; (2) fail[ed] “to authorize, permit, provide, and/or make available to those employees, including those who work as DSTs, the meal and rest periods to which they are entitled by law and failing to pay premium wages for these missed breaks; (3) fail[ed] to pay those employees for required travel between clients; (4) regularly fail[ed] to reimburse those employees as promised for mileage incurred on the job; (5) fail[ed] to provide those employees with accurate, itemized wage statements; and (6) fail[ed] to pay all wages after such employees voluntarily or involuntarily terminated their employment with Defendants. Id. ¶ 1. On February 17, 2017, plaintiff submitted to defendants and the California Labor Workforce and Development Agency (“LWDA”) a notice of her intent to seek penalties under PAGA as required by the statute and filed her initial complaint in this court. Mot., ECF No. 48-1 (citing Hicks Decl. ¶ 4, ECF No. 48-2; Compl.). Plaintiff filed her Amended Complaint adding a claim for PAGA Penalties on April 25, 2017. Id. (citing Am. Compl, ECF No. 8). Defendants filed a motion to compel arbitration on July 17, 2017, ECF No. 20, which the court granted, and as a result dismissed all non-PAGA claims and compelled all of plaintiff’s individual claims to arbitration. ECF No. 29. The parties continued to litigate the PAGA collective action claim and exchanged discovery. Mot. at 6. After submitting mediation briefs, on January 27, 2020, the parties attended a full-day mediation session with Michael J. Loeb of JAMS, a mediator specializing in wage and hour class actions and PAGA mediations. Hicks Decl. ¶ 12. The parties ultimately reached a settlement, which they finalized March 23, 2020, subject to this court’s approval. Id. ¶ 14. On March 24, 2020, plaintiff filed the instant motion to approve the parties’ PAGA settlement. Mot. Defendants filed a statement of non-opposition. ECF No. 49. The court took the matter under submission and resolves it here. ///// 2 Former Defendant On My Own Inc. is unrelated to the other defendants and the court dismissed it from the case without prejudice on May 23, 2017. ECF No. 15. B. Relevant Settlement Provisions The settlement provides for a PAGA payment of $575,000, inclusive of costs and attorneys’ fees incurred and subject to an escalator provision,3 to resolve the PAGA Settlement Group members’ claims of Labor Code violations based on the allegations in the operative complaint. Mot. at 7 (citing Hicks Decl., Ex. 1 (“Settlement”), §§ 2, 9). Of this amount, one- third, or $191,666.67, would be paid in attorneys’ fees, $6,802.87 would be paid in costs to plaintiff’s counsel, and $7,550 would be paid to a third-party settlement administrator. Id. (citing Settlement §§ 2(a–g), 6). The named plaintiff would receive an incentive award of $10,000. Id. Seventy-five percent of the remaining $358,980.86 would be distributed to the LWDA, and 25 percent, or $89,745.22, would be distributed to the PAGA Settlement Group Members. Id. (citing Settlement § 2(c)). The PAGA Settlement Group consists of 1,467 current and former non- exempt “Elder Care Service Providers,” “Senior Direct Service Trainers,” “Direct Service Trainers,” “Senior Direct Service Providers,” and/or “Direct Service Providers,” who worked in California for defendants during the period of February 17, 2016 through the date of this order (the “PAGA Period”). Mot. at 8 (citing Settlement § 6(a), 9). The settlement bases payments to the Settlement Group members on each employee’s share of the workweeks that the Settlement Group members collectively worked during the applicable time period. Settlement § 6(b). The Settlement Administer will tender to the LWDA as cy pres beneficiary any checks it sends to PAGA Settlement Group members, who do not cash them within 180 days from the date of mailing. Mot. at 10; Settlement § 6(h). In exchange for the settlement payments, plaintiff, on behalf of herself and the LWDA, will release the PAGA claims and all remedies available under the PAGA based on the facts alleged in the complaint for activity during the PAGA Period. Mot. at 9 (citing Hicks Decl. ¶ 17); Settlement § 3(a). Aside from plaintiff’s individual wage and hour claims that this court 3 The Settlement Agreement contains an escalator clause which states that, if the total number of PAGA Settlement Group members exceeds 1,467 by more than 15 percent as of March 27, 2020, 60 days after the parties executed the memorandum of understanding underlying the Settlement Agreement, then the total settlement amount will increase by a proportionate amount. Mot. at 10 n.7; Settlement § 9. compelled to arbitration, the Settlement Agreement does not release any individual non-PAGA claims by any member of the PAGA Settlement Group. See Mot. at 9; Proposed Order, ECF No. 48-5, at 4. “An employee bringing a PAGA action does so as the proxy or agent of the state's labor law enforcement agencies, . . . who are the real parties in interest.” Sakkab v. Luxottica Retail N. Am. Inc., 803 F.3d 425, 435 (9th Cir. 2015) (internal citations omitted). Thus, “[a]n action brought under the PAGA is a type of qui tam action.” Id. at 429. Because a settlement of PAGA claims compromises a claim that could otherwise be brought by the state, the PAGA provides that “court[s] shall review and approve any settlement of any civil action filed pursuant to [PAGA].” Cal. Lab. Code § 2699(l)(2). A party seeking approval of a PAGA settlement must simultaneously submit the proposed settlement to the LWDA to allow the LWDA to comment on the settlement if it so desires. PAGA also states that courts may exercise their discretion to lower the amount of civil penalties awarded “if, based on the facts and circumstances of the particular case, to do otherwise would result in an award that is unjust, arbitrary and oppressive, or confiscatory.” Cal. Lab. Code § 2699(e)(2). Because state law enforcement agencies are the “real parties in interest” for PAGA claims, the court’s task in reviewing the settlement is to ensure the state’s interest in enforcing the law is upheld. Sakkab, 803 F.3d at 435. Plaintiff’s counsel has transmitted a copy of the instant motion and supporting declarations as well as a copy of the Settlement Agreement to the LWDA, through the LWDA’s online submission page, as required by California Labor Code section 2699. Hicks Decl. ¶ 16, ECF No. 48-2. LWDA has not submitted anything to the court reflecting a position on this settlement. Other than the provisions discussed above, PAGA does not establish a standard for evaluating PAGA settlements. Indee

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

Hartley v. On My Own, Inc., (E.D. Cal. 2020).

Hartley v. On My Own, Inc. (Hartley v. On My Own, Inc.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related

Wal-Mart Stores, Inc. v. Dukes
131 S. Ct. 2541 (Supreme Court, 2011)
In Re Immune Response Securities Litigation
497 F. Supp. 2d 1166 (S.D. California, 2007)
Theodore H. Frank v. Netflix, Inc.
779 F.3d 934 (Ninth Circuit, 2015)
Sakkab v. Luxottica Retail North America, Inc.
803 F.3d 425 (Ninth Circuit, 2015)
ZB, N.A. v. Superior Court
448 P.3d 239 (California Supreme Court, 2019)
Hanlon v. Chrysler Corp.
150 F.3d 1011 (Ninth Circuit, 1998)
Vizcaino v. Microsoft Corp.
290 F.3d 1043 (Ninth Circuit, 2002)
Nen Thio v. Genji, LLC
14 F. Supp. 3d 1324 (N.D. California, 2014)
Cotter v. Lyft, Inc.
193 F. Supp. 3d 1030 (N.D. California, 2016)
O'Connor v. Uber Technologies, Inc.
201 F. Supp. 3d 1110 (N.D. California, 2016)
In re Taco Bell Wage & Hour Actions
222 F. Supp. 3d 813 (E.D. California, 2016)