Manzo v. McDonald's Restaurants of California, Inc.

District Court, E.D. California·Decided September 29, 2022·No. 1:20-cv-01175·Unknown

Opinion

GENNIFER MANZO, Case No. 1:20-cv-1175-HBK individually and on behalf of all others similarly situated, ORDER GRANTING FINAL APPROVAL OF CLASS ACTION AND PAGA SETTLEMENT Plaintiffs, AND GRANTING MOTION FOR ATTORNEY’S FEES, IN PART v. (Doc. No. 27) MCDONALD’S RESTAURANTS OF CALIFORNIA, INC., Defendant. Before the Court is Plaintiff Gennifer Manzo’s (“Plaintiff” or “Manzo”) Motion for Final Approval of Class Action and Private Attorneys General Act Settlement and Motion for Attorney’s Fees and Costs, filed on July 22, 2022. (Doc. No. 27, “Motion”). Filed in support are the declarations of the attorneys for Plaintiffs: Edward W. Choi, Larry W. Lee, Dennis S. Hyun, and William Marder (Doc. Nos. 27-2, 27-3, 27-4, 27-5); declaration of Nicole Bench, Case Manager for ILYM Group, Inc., the Settlement Administrator (Doc. No. 27-6), and declaration of class representative, Plaintiff Gennifer Manzo (Doc. No. 27-7). Defendant filed no opposition to the Motion. On August 19, 2022, the Court held a hearing on Plaintiff’s Motion. (See Doc. No. 29, Minutes). Attorney Edward Choi appeared for Plaintiff and Attorney Kelsey Israel-Trummel appeared for Defendant. (Id.). Neither the class representative Ms. Manzo, nor any other class members appeared. (Id.). No objectors appeared. Defendant raised no opposition to the Motion at the hearing. (Id). Having considered the moving papers, as well as the Court’s file, the Court grants the Motion to the extent set forth herein. The Court’s previous Order Granting Preliminary Approval described the history of this action in some detail. (Doc. No. 24). The Court briefly summarizes the pertinent matters here. Plaintiff filed the present action on September 20, 2020. (Doc. No. 1). Plaintiff, a former employee of Defendant, asserting diversity jurisdiction under the Class Action Fairness Act, 28 U.S.C. § 1332(d), brought claims for penalties under California Labor Code § 226 and under California’s Private Attorney General Act (“PAGA”). (Id. at 1-2). Plaintiff’s claims challenged the methods by which Defendant reported overtime and other compensation on wage statements. (Doc. No. 1 at 9:3-10). Based on data provided by Defendant in preparation for mediation, Plaintiff calculated Defendant’s total maximum exposure to be $3,980,650 for Labor Code § 226 penalties and $10,559,250 for PAGA penalties. (Doc. No. 15-2 at 5:8-22). On May 28, 2021, following a mediation before experienced employment law mediator Michael Loeb, Esq., the parties filed a notice of settlement. (Doc. Nos. 13-14; 15-2 at 4:26-27). A. Settlement Terms Rule 23 Settlement Class The settlement class includes the following two groups: 2.23.1 The “June 2, 2020 Settlement Subclass” consists of all California non-exempt employees who received wage statements that included daily, weekly, or seventh day premium overtime and/or MQI True Up wages at any time from June 2, 2020 through the Preliminary Approval Date (“June 2, 2020 Subclass Class Period”) and who were subject to the class settlement reached in Sanchez v. McDonald's Restaurants of Cal., Inc., Los Angeles County Superior Court Case No. BC499888. 2.23.2 The “April 6, 2019 Settlement Subclass” consists of all California non-exempt employees who received wage statements that included daily, weekly, or seventh day premium overtime and/or MQI True Up wages at any time from April 6, 2019 through the Preliminary Approval Date (“April 6, 2019 Subclass Class Period”), and who were not subject to the class settlement reached in Sanchez v. McDonald's Restaurants of Cal., Inc., Los Angeles County Superior Court Case No. BC499888. (Doc. No. 15-2 at 13-14, ¶ 2.23). There are 5,437 members in the Settlement Class. (Doc. 27 at 13; citing Doc. No. 27-6 ¶ 13). A total of 3,553 individuals are part of the June 2, 2020, Subclass and 1,884 individuals are part of the April 6, 2019, Subclass. (Doc. No. 27-6 ¶ 5). Releases The Settlement Class is releasing the claims asserted in this suit, depending on the relevant time period for their subclass: “ . . . all June 2, 2020 Settlement Subclass Members who have not been excluded from the Settlement Class as provided in the Opt-Out List . . . release and discharge each and all of the Released Parties from any and all claims for damages and/or penalties for alleged violations of § 226 of the California Labor Code and for penalties under § 2698, et seq. premised upon violation of Labor Code § 226 for the time period of June 2, 2020, through June 30, 2021, except that the release for claims relating to the display of MQI True Up shall extend through the date the Court grants final approval of the Settlement [and] . . . all April 6, 2019 Settlement Subclass Members who have not been excluded from the Settlement Class as provided in the Opt-Out List . . . release and discharge each and all of the Released Parties from any and all claims for damages and/or penalties for alleged violations of § 226 of the California Labor Code - 12 - and for penalties under § 2698, et seq. premised upon violation of Labor Code § 226 for the time period of April 6, 2019, through June 30, 2021, except that the release for claims relating to the display of MQI True Up shall extend through the date the Court grants final approval of the Settlement. (Doc. Nos. 15-2 at 20-21 ¶¶ 8.1-8.2;Doc. No. 27 at 13:9-25). In addition, Plaintiff provides a general release, including a release of all known and unknown claims under California Civil Code § 1542. (Doc. No. 15-2 at 21 ¶ 8.3). Gross and Net Settlement Amounts a. Gross Settlement Amount The Gross Settlement Amount is $2 million. (Doc. No. 27 at 14:2). No portion of the Gross Settlement Amount will be retained by or revert to Defendant. (Doc. No. 27 at 14:6-9). b. PAGA Penalties The settlement allocates $100,000 of the Gross Settlement Amount for PAGA penalties. (Doc. No. 15-2 at 13 ¶ 2.14). From this amount, 75% will be paid to the California Labor and Workforce Development Agency (“LWDA”) for civil penalties and 25% will be distributed to members of the Settlement Class for penalties for tax reporting purposes. (Id.). c. Attorney’s Fees and Costs Class counsel seek $600,000.00 for attorney fees, which is 30% of the gross settlement amount. (Doc. No. 27 at 10.). Class counsel also seeks reimbursement of litigation costs in the amount of $7,311.08. (Id.). d. Incentive Payment In addition to her payment under the settlement agreement, Plaintiff Gennifer Manzo seeks an incentive award of $10,000. (Id.). e. Settlement Administrator Costs Plaintiff requests approval of $30,000.00 in costs to Settlement Administrator ILYM Group, Inc. to be deducted from the gross settlement amount. (Doc. No. 27 at 15:12-15; Doc. No. 27-6 ¶15). Under the settlement agreement, all fees, costs, and expenses of ILYM were not to exceed $30,000. (Doc. No. 15-2 at 11-12 ¶ 2.22). f. Estimate of Net Settlement Amount Based on the foregoing, Plaintiff estimates that the net settlement amount available for distribution to the class members will be approximately $1,211,022.25. (Doc. No. 27 at 14). On average each member of the Settlement Class will receive an approximate average gross payment of $222.74. (Doc. No. 27 at 14:12-14; Doc. No. 27-6 ¶14). The highest individual settlement payment is approximately $1,528.99. (Doc. No. 27 at 14:14-15; Doc. No. 27-6 ¶ 14). The amount each class member will receive will be calculated based on the number of qualifying wage statements during the relevant subclass period divided by the total number of wage statements received by the class members. (Doc. No. 23-1 at 6 ¶ 9.3). g. Cy Pres If any individual settlement payments to members of the Settlement Class remain un- cashed after one hundred eighty (180) days of their mailing by the settlement administrator, they will be paid to the cy pres recipient, the Center for Employment Training (“CET”), a California affiliate of Uni

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Manzo v. McDonald's Restaurants of California, Inc., (E.D. Cal. 2022).

Manzo v. McDonald's Restaurants of California, Inc. (Manzo v. McDonald's Restaurants of California, Inc.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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