Lawrence Kelly v. Aramark Services, Inc.

District Court, N.D. California·Decided December 23, 2025·No. 3:22-cv-01272·Unknown

Opinion

LAWRENCE KELLY, Case No. 22-cv-01272-AMO

Plaintiff, ORDER GRANTING MOTION FOR v. PRELIMINARY APPROVAL

ARAMARK SERVICES, INC., Re: Dkt. No. 77 Defendant.

In this putative class and Private Attorneys General Act (“PAGA”) representative action, Plaintiff Lawrence Kelly alleges Defendant Aramark Services, Inc. deprived Kelly and other Aramark workers of wages and legally required meal and rest breaks. This Order assumes familiarity with the facts and procedural history of the case. Before the Court is Kelly’s motion for preliminary approval of class action and PAGA settlement. Dkt. No. 77 (“Mot.”). The motion was heard before this Court on December 11, 2025. Having read the parties’ papers and carefully considered their arguments therein and those made at the hearing, as well as the relevant legal authority, and good cause appearing, the Court grants the motion, for the following reasons, subject to the modifications discussed herein. The settlement agreement defines the class as “all persons employed by Defendants in the Refreshments line of business in hourly or non-exempt positions in California during the Class Settlement Period, other than those persons whose hours were regulated by (1) the United States Department of Transportation Code of Federal Regulations, Title 49, Sections 395.1 to 395.13; and / or (2) Title 13 of the California Code of Regulations, subchapter 6.5, Section 1200.” Settlement Agreement (“Settlement”) (Dkt. No. 77-1) ¶ 1.36. The Class Settlement Period is provides for a gross settlement amount of $95,000, which includes a $5,000 PAGA payment,1 attorney’s fees of $23,750,2 up to $5,000 in litigation costs, up to $7,500 in settlement administration costs, and a service award of $5,000 for Kelly. Mot. at 9-10. After accounting for these expenses, the net settlement amount is $48,750. Id. at 10. Each putative class member (of which there are estimated to be 97) will receive an equal share of approximately $502.58. Id. at 9- 10. In addition, Aramark will pay the employer’s portion of payroll taxes on the portion of each Individual Settlement Payment allocated as unpaid wages. Id. at 9. The Court first determines if conditional certification of the class is appropriate before assessing whether the settlement is fundamentally fair, adequate, and reasonable. Finally, the Court considers Kelly’s proposed notice plan. A. Preliminary Approval Federal Rule of Civil Procedure 23(e) requires court approval of any settlement that will bind absent class members. Courts need only conclude the settlement is fair, adequate, and reasonable – not that the settlement is the best possible outcome. In re Calif. Pizza Kitchen Data Breach Litig., 129 F.4th 667, 674 (9th Cir. 2025). Courts therefore may “neither rubberstamp the settlement nor unduly meddle in the parties’ affairs.” Id. Where a class action has settled before class certification, courts first determine whether class certification is appropriate before making a preliminary determination that the settlement is “fundamentally fair, adequate and reasonable.” In re Heritage Bond Litig., 546 F.3d 667, 674-75 (9th Cir. 2008); see also Manual for Complex Litigation, Fourth § 21.632 (FJC 2004). Courts then “direct notice in a reasonable manner to all class members who would be bound by the proposal.” Fed. R. Civ. P. 23(e)(1)(B). Finally, courts hold a hearing pursuant to Rule 23(e)(2) for final approval of the settlement. 1. Conditional Certification Class certification requires a plaintiff to satisfy Rule 23(a)’s requirements – numerosity, 1 Out of the $5,000 PAGA payment, the California Labor & Workforce Development Agency (“LWDA”) will be paid $3,750 and PAGA Members will be paid $1,250. Mot. at 10.

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