Pipich v. O'Reilly Auto Enterprises, LLC

District Court, S.D. California·Decided January 7, 2025·No. 3:21-cv-01120·Unknown

Opinion

JEFFREY PIPICH, as an “aggrieved Case No.: 3:21-cv-01120-AHG employee” on behalf of all other similarly ORDER: situated “aggrieved employees” under the

Labor Code Private Attorney General Act (1) GRANTING PLAINTIFFS’ of 2004, Plaintiff, ATTORNEY FEES, REIMBURSEMENT OF COSTS, v. ADMINISTRATION EXPENSES O’REILLY AUTO ENTERPRISES, LLC, PAYMENT, AND CLASS a Delaware limited liability company; REPRESENTATIVE SERVICE EXPRESS SERVICES, INC., a Colorado PAYMENTS; and corporation d/b/a Express Employment Professionals; and DOES 2-50, inclusive, (2) GRANTING MOTION FOR FINAL APPROVAL OF CLASS Defendants. ACTION AND PAGA SETTLEMENT

[ECF Nos. 99, 103] Presently before the Court are Plaintiffs’ Unopposed Motion for Final Approval of Class Action Settlement and Motion for Attorney Fees, Costs, Administration Expenses Payment, and Class Representative Service Payments. ECF No. 99, 103. A hearing on these motions was held on October 9, 2024. Based on the reasons set forth below, the Court GRANTS Plaintiffs’ Motion for Fees and Costs, the Administration Expenses Payment, and Class Representative Service Payments. On June 16, 2021, Plaintiff filed his initial complaint against Defendant O’Reilly Auto Enterprises, LLC (“O’Reilly”) in this Court, styling his claims as a collective action under the Fair Labor Standards Act (“FLSA”), and alleging that O’Reilly had failed to provide proper payment of all wages to Plaintiff and other employees who were putative collective members by requiring them to undergo COVID-19 screenings and security inspections each day without pay, including during meal breaks, rest breaks, and off-the- clock pre-shift and post-shift time. ECF No. 1. After the Court found that Plaintiff failed to state a cognizable legal claim under the FLSA and dismissed the action without prejudice (ECF No. 15), Plaintiff filed a Second Amended Complaint against O’Reilly on April 7, 2022, bringing claims under the Private Attorneys General Act (“PAGA”) of the California Labor Code based on the same underlying allegations. ECF No. 23. In September 2022, while discovery was underway, the parties requested and were granted a stay of the case for approximately six months pending private mediation in February 2023, which ultimately proved unsuccessful. ECF Nos. 32, 33, 38. The stay was lifted on March 7, 2023. ECF No. 39. On April 14, 2023, upon the order of the Court, Plaintiff amended the complaint once more to properly allege subject-matter jurisdiction. ECF No. 45. On February 21, 2024, the parties settled the case during a Mandatory Settlement Conference conducted by the Honorable Jill L. Burkhardt. ECF No. 70. The settlement was a global settlement including this matter and three related matters involving Defendant O’Reilly: (1) Eve Storm v. O’Reilly Auto Enterprises, et al., Riverside Superior Court, Case No. CVRI2104730; (2) Eve Storm v. O’Reilly Auto Enterprises, et al., Case No. 5:23-cv- 00597-FLA-MAR (C.D. Cal.); and (3) Gary Cull, et al. v. O’Reilly Auto Enterprises, LLC, Case No. 5:23-cv-01623-FLA-MAR (C.D. Cal.). See ECF No. 82 at 4. The parties agreed to settle these cases on a class-wide basis, and the federal matters in the United States District Court for the Central District of California have since dismissed the Storm and Cull matters without prejudice. ECF No. 89-1 at 21.1 Thereafter, the parties consented to the undersigned to preside over the case and review the proposed settlement for court approval. ECF No. 77. Pursuant to the terms of the settlement and with leave of Court, Plaintiff filed the operative Fourth Amended Complaint (“4AC”) on May 21, 2024. ECF No. 86. The 4AC added Plaintiffs Eve Storm, Gary Cull, Melissa Kolakowski, and Daniel Lopez to the case as class representatives, added Express (a named defendant in the Storm cases) as a Defendant, and added certain class allegations and causes of action. See ECF No. 82 at 5; ECF No. 86. Specifically, in the 4AC, Plaintiffs bring class-wide claims for (1) failure to provide meal periods under California Labor Code §§ 226.7, 512, and 1198; (2) failure to authorize and permit rest breaks under California Labor Code §§ 226.7 and 1198; (3) failure to pay all wages earned at the correct rates of pay under California Labor Code §§ 223, 510, 1194, 1197, 1198; (4) failure to indemnify under California Labor Code §§ 1198 and 2802; (5) failure to issue accurate and complete wage statements under California Labor Code § 226; (6) willful failure to timely pay final wages under California Labor Code §§ 201-203; and (7) unfair competition under California Business and Professional Code §§ 17200, et seq. Id. ¶¶ 65-137. In addition, Plaintiffs bring an eighth cause of action seeking civil penalties under PAGA on behalf of the “Aggrieved Employees,” defined as all members of the Class employed by Defendants during the period beginning May 11, 2020, and ending on the date that final judgment is entered in this action. Id. ¶¶ 138-164. On May 24, 2024, Plaintiffs filed a Motion to Grant Preliminary Approval of Class Action Settlement (ECF No. 89), which the Court granted on June 7, 2024. ECF No. 94. The preliminary approval order established a process for notice to the Class. Id. Notice was 1 As part of the settlement agreement, Plaintiffs agree to dismiss Plaintiff Eve Storm’s PAGA action in the Riverside County Superior Court without prejudice within 14 days completed as ordered. On September 30, 2024, the parties filed a Motion to Reserve Ruling on the Motion for Final Approval of Class Action Settlement (ECF No. 101), which the Court granted on October 1, 2024. ECF No. 102. On October 2, 2024, Plaintiffs filed an unopposed Motion for Final Approval of Class Action Settlement. ECF No. 103. The final approval hearing took place on October 9, 2024. No Class Members objected to the settlement, and one Class Member requested exclusion because they had reached an individual settlement separately with O’Reilly. ECF No. 103-1 at 9. The parties have executed a Joint Stipulation of Class Action and PAGA Settlement (“Settlement Agreement” or “Settlement”). ECF No. 103-2 at 7. The primary terms of the Settlement are: • The Settlement Class is defined as all individuals employed by one or both Defendants as non-exempt, hourly employees, either directly or indirectly through staffing agencies, and who worked at one of Defendant O’Reilly Auto Enterprises, LLC’s distribution centers in California at any time during the Class Period of July 5, 2018 to May 22, 2024. The “Aggrieved Employees” are all class members who were employed by one or both Defendants in California and classified as non- exempt, hourly employees, either directly or indirectly through staffing agencies, at one of Defendant O’Reilly Auto Enterprises, LLC’s distribution centers in California at any time during the PAGA Period of May 11, 2020 to May 22, 2024. The Settlement Class thus includes all Aggrieved Employees. • Defendant O’Reilly will pay $4,100,000.00 (the “Gross Settlement Amount”), in addition to any and all employer payroll taxes owed on the Wage Portions2 of the Individual Class Payments, to settle the claims of the Settlement Class. The Administrator will disburse the entire Gross Settlement Amount without asking or

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