Howell v. Advantage RN LLC

CourtDistrict Court, S.D. California
DecidedJune 9, 2020
Docket3:17-cv-00883
StatusUnknown

This text of Howell v. Advantage RN LLC (Howell v. Advantage RN LLC) is published on Counsel Stack Legal Research, covering District Court, S.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Howell v. Advantage RN LLC, (S.D. Cal. 2020).

Opinion

1 2 3 4 5 6 7 8 UNITED STATES DISTRICT COURT 9 SOUTHERN DISTRICT OF CALIFORNIA 10 11 EMILY HOWELL, an individual on Case No.: 17-CV-883 JLS (BLM) behalf of herself and others similarly 12 situated, ORDER: (1) GRANTING 13 PRELIMINARY APPROVAL OF Plaintiff, CLASS AND COLLECTIVE 14 v. ACTION SETTLEMENT; 15 (2) APPROVING AND DIRECTING ADVANTAGE RN, LLC; and DOES 1 DISTRIBUTION OF NOTICE; AND 16 through 10, (3) SETTING SCHEDULE FOR 17 Defendants. FINAL APPROVAL PROCESS

18 (ECF No. 87) 19

20 Presently before the Court is Plaintiff Emily Howell’s unopposed Motion for 21 Preliminary Approval of Proposed Class and Collective Action Settlement (“Prelim. 22 Approval Mot.,” ECF No. 87); see also ECF No. 88 (notice of non-opposition). The Court 23 vacated the hearing and took the matter under submission without oral argument pursuant 24 to Civil Local Rule 7.1(d)(1). See ECF No. 89. Having reviewed the terms of the Proposed 25 Settlement Agreement, Plaintiff’s arguments, and the law, the Court preliminarily 26 concludes that the settlement falls within the range of reasonableness warranting 27 preliminary approval, i.e., that the settlement appears fundamentally fair, reasonable, and 28 adequate. Accordingly, the Court GRANTS the Preliminary Approval Motion. 1 GENERAL BACKGROUND 2 This case began when Plaintiff filed a putative class action against Advantage RN 3 (“ARN”) on May 1, 2017. See ECF No. 1. In the operative First Amended Complaint, 4 filed July 10, 2017, Plaintiff alleges Defendant illegally excluded per diem stipends and 5 monetary bonuses from the “regular rate” when calculating employee overtime. See 6 generally ECF No. 13 (“FAC”). Plaintiff further alleges that this exclusion caused 7 damages under several provisions of federal and state law, including damages for unpaid 8 overtime (Cal. Labor Code §§ 510, 1194), unfair business practices (Cal. Bus. & Prof. Code 9 §§ 17200 et seq.), waiting time penalties (Cal. Labor Code § 203), and civil penalties under 10 California’s Private Attorney General Act (“PAGA”) (Cal. Labor Code §§ 2698 et seq.), 11 as well as damages for unpaid overtime under the federal Fair Labor Standards Act 12 (“FLSA”) (29 U.S.C. §§ 201 et seq.). See generally FAC. On July 24, 2017, Defendant 13 filed an answer denying liability and asserting sixteen affirmative defenses. See generally 14 ECF No. 15. 15 On December 15, 2017, Plaintiff moved pursuant to Federal Rule of Civil Procedure 16 23 to certify a California class in connection with the state law claims and a nationwide 17 collective in connection with the FLSA claim. See ECF No. 21. Defendant opposed. See 18 ECF No. 24. The Court granted Plaintiff’s motion and certified a Rule 23 class and FLSA 19 collective. See ECF No. 38. On March 25, 2017, Defendant filed a motion to modify the 20 end of the class period from July 17, 2018 to June 30, 2017, to reflect the date Defendant 21 ceased operations. See ECF No. 54. The Court denied the motion. See ECF No. 79. 22 On March 29, 2019, Defendant filed a motion for summary judgement, see ECF No. 23 56, and Plaintiff filed a cross-motion for partial summary judgement as to Defendant’s 24 liability only on April 19, 2019. See ECF No. 63. On August 16, 2019, the Court denied 25 Defendant’s motion and granted in part and denied in part Plaintiff’s motion. See generally 26 ECF No. 79. Specifically, the Court granted summary judgement in Plaintiff’s favor as to 27 the California claims for overtime, unfair business practices, civil PAGA penalties, and 28 liquidated damages under the FLSA. See ECF No. 79. With respect to the California 1 waiting time penalties, the Court granted Plaintiff’s motion as to the bonus claims but 2 denied it as to her per diem claims. See id. Similarly, the Court extended the FLSA statute 3 of limitations from two to three years on grounds of willfulness for the bonus claims but 4 not the per diem claims. See id. 5 In October 2017, the Parties participated in a private mediation with the Honorable 6 Carl West (Ret.); however, the Parties did not agree to settlement terms at that time. Prelim. 7 Approval Mot. at 7. On November 21, 2019, the Parties participated in a second private 8 mediation with the Honorable Jay C. Gandhi (Ret.) that resulted in a tentative settlement. 9 Id. In January 2020, the Parties reached a comprehensive settlement. Id. The resulting 10 Proposed Joint Stipulation and Settlement Agreement, filed January 24, 2020, is now 11 before the Court. See generally ECF No. 87. 12 SETTLEMENT TERMS 13 The Parties have submitted a comprehensive Proposed Joint Stipulation and 14 Settlement Agreement with approximately eighteen pages of substantive terms, Prelim. 15 Approval Mot. Ex. 2 (“Proposed Settlement Agreement,” ECF No. 87 at 18–36), as well 16 as a Proposed Notice. Proposed Settlement Agreement Ex. C (“Proposed Notice,” ECF 17 No. 87 at 51–57). 18 I. Proposed Settlement Class and Collective 19 The Proposed Settlement Class is defined to include “[a]ll non-exempt hourly health 20 care professionals employed by ARN in California from May 2, 2013 through July 17, 21 2018 who worked pursuant to a Traveler Assignment Confirmation, worked overtime, and 22 had the value of the per diem stipend and/or loyalty, extension or completion bonus paid 23 to them excluded from their regular rate for the purpose of calculating overtime.” Proposed 24 Settlement Agreement at 2. According to the Parties’ investigation and available data, this 25 constitutes 237 individuals (the “California Class”). Id. 26 The Proposed Settlement Collective is defined to include “[a]ll non-exempt hourly 27 health care professionals employed by ARN in the United States within three years prior 28 to July 17, 2018 who worked pursuant to a Traveler Assignment Confirmation, worked in 1 excess of 40 hours in one or more workweeks, and had the value of the per diem stipend 2 and/or loyalty, extension or completed bonus paid to them excluded from their regular rate 3 for purposes of calculating overtime.” Id. at 3. According to the Parties’ investigation and 4 available data, this constitutes 215 individuals (the “FLSA Collective”). Id. 5 Some individuals are members of both the California Class and FLSA Collective. Id. 6 II. Proposed Monetary Relief 7 The Proposed Joint Stipulation and Settlement Agreement provides for $3,200,000 8 in non-reversionary Gross Settlement Proceeds, Proposed Settlement Agreement ¶ 4, used 9 to pay no more than one-third (or $1,066,666.67) in Attorneys’ fees, no more than $40,000 10 for Class Counsel’s costs, no more than $15,000 in settlement administration fees and 11 costs, $10,000 for the Named Plaintiff Service Award, and $50,000 allocated to PAGA 12 penalties, twenty-five percent of which ($12,500) is to be distributed to the California 13 Class. Prelim. Approval Mot. at 8-10. The resulting Net Settlement Amount will be used 14 to pay the California Class and FLSA Collective members. Id. at 10. In the event the Court 15 reduces any of the aforementioned awards, the difference shall be included in the funds 16 available for distribution to the California Class and FLSA Collective and none of the funds 17 will revert to ARN. Proposed Settlement Agreement ¶ 5. Employer-side payroll taxes will 18 not be deducted from the settlement and will be paid by ARN with separate funds. Prelim. 19 Approval Mot. at 11. 20 Members of the California Class and/or FLSA Collective will automatically be 21 mailed a settlement payment. See Proposed Settlement Agreement ¶ 6–7. Members of the 22 California Class and FLSA Collective will be given forty-five days to dispute overtime 23 calculations. Proposed Settlement Agreement ¶ 10(d).

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Howell v. Advantage RN LLC, Counsel Stack Legal Research, https://law.counselstack.com/opinion/howell-v-advantage-rn-llc-casd-2020.