Ranger v. Shared Imaging

District Court, E.D. California·Decided July 5, 2023·No. 2:20-cv-00401·Unknown

Opinion

MONICA RANGER, on behalf of herself No. 2:20–cv–401–KJN and all others similarly situated, PRELIMINARY APPROVAL OF CLASS Plaintiff, ACTION AND PAGA SETTLEMENT v. (ECF Nos. 41, 61.) SHARED IMAGING, LLC. Defendant. Presently pending before the court is plaintiff’s unopposed motion for provisional certification of a Rule 23 class and preliminary approval of the parties’ class action and PAGA settlement in this meal- and rest-break labor dispute.1 (ECF Nos. 41, 44, 61.) For the following reasons, the court GRANTS provisional certification of the settlement class, APPOINTS plaintiff as class representative and plaintiff’s counsel from the Clayeo firm as class counsel, GRANTS preliminary approval of the class action and full approval of the PAGA settlement, APPROVES the class notice—after small modifications are made, and SETS further deadlines. ///

1 The assigned district judge took the motion under submission without a hearing. (ECF No. 46.) Thereafter, the parties consented to the jurisdiction of a magistrate judge for all purposes, 28 U.S.C. § 636(a), and the case was reassigned to the undersigned. (See ECF Nos. 50, 52, 53.) Plaintiff has worked for defendant Shared Imaging part-time from January 2019 through the present as a nuclear medicine technologist “safely conduct[ing] positron emission tomography (“PET”) scans” for Kaiser health physicians. She alleges that due to the nature of the work, including defendant’s setting of her work schedule and her patients’ inefficiencies, it was impossible for her to take meal or rest breaks despite regularly working 13+ hour shifts. She also alleges defendant failed to pay overtime wages and required her to use her personal phone for business purposes without compensation. She alleges these allegations are common to the class and to all aggrieved workers under the Private Attorneys General Act (“PAGA”). (ECF No. 65.) Plaintiff filed a case in California Superior Court in Sacramento on January 21, 2020; soon thereafter defendant removed to this court on diversity jurisdiction grounds. (ECF No. 1.) The operative Third Amended Complaint (“3AC”) asserts claims on behalf of a class defined as “all persons who are or have been employed [within the class period] as nuclear medicine technologists.” (ECF No. 65 at ¶ 52.) The 3AC asserts claims for failure to pay premiums on forfeited rest and meal periods under Cal. Labor Code § 226.7; failure to pay overtime wages under Wage Order No. 5-2001 § 3(A) and Cal. Labor Code §§ 510 and 1194; failure to provide accurate pay stubs under Cal. Labor Code § 226; failure to reimburse business expenses as required by Cal. Labor Code § 2802; and failure to pay timely wages under Cal Labor Code § 202 and 203. (Id. at 14-21.) The 3AC also asserts an ancillary claim under Cal. Bus. Code § 17200 and a claim for PAGA penalties under Cal. Lab. Code § 2699. (Id. at 18-20.) In the years that followed, the parties exchanged discovery and negotiated over the size of the class and damages. (ECF No. 41-1 at ¶¶ 11-20, 23-29.) On November 8, 2021, the parties informed the court they had reached an agreement in principle, and the assigned district judge stayed the case. (Id. at ¶¶ 30-31.) On May 10, 2022, the parties executed the longform agreement to settle the case on behalf of plaintiff and the class. (Id. at ¶ 34.) On June 30, 2022, plaintiff filed a motion seeking provisional certification of the class, court approval of the settlement, and further scheduling for final approval of the settlement. (ECF No. 41.) The court noted issues, and the parties supplemented their filings. (ECF Nos. 54, 61, 63.) Terms of the Proposed Settlement The Settlement Agreement contains a release of all claims that are factually supported by the 3AC against defendant by the proposed class, who are defined as “all current and former hourly non-exempt nuclear medicine technologists and assistants to nuclear medicine technologists employed by defendant in California at any time during the class period.” (ECF No. 61-2 at ¶¶ 5, 20, 36 (the Settlement Agreement).) The Agreement sets the PAGA period from January 20, 2019, through the date of the court’s preliminary approval. (Id. at ¶ 16.) The proposed class consists of approximately “82 class members who worked approximately 6,485 Work Weeks during the Class Period,” and is divided into two subclasses: (a) non-exempt nuclear medicine technologists employed by defendant in California at any time during the class period (the “Technologist Subclass”); and (b) assistants to nuclear medicine technologists employed by defendant in California at any time during the class period (The “Assistant Subclass”).2 (Id. at ¶ 5.) The parties have estimated there are 42 potential members of the Technologist Subclass and 40 potential members of the Assistant Subclass. (ECF No. 41-4 at 7.) After the court noted a mismatch between the Rule 23 class and the PAGA Members (ECF No. 54), the parties modified the terms of the Agreement so that the individuals in the Rule 23 Class are the same as those affected by the PAGA settlement. (See ECF No. 61 at 3-4.) In return for the release of claims from these individuals, the Settlement Agreement provides for a non-reversionary gross settlement amount of $768,000. (ECF No. 61-2 at ¶ 27.) This amount is to be increased by 2% on a proportional basis if the actual number of work weeks 2 According to the operative 3AC and counsel’s declaration, the claims were originally raised by plaintiff on behalf of a class of around 30 of defendant’s employees, but in discovery the parties came to discover the claims extended to a larger group. (See ECF No. 26 at ¶ 52; ECF No. 41-1 at ¶¶ 18-27 (counsel’s description of the enlargement of the class based on what was revealed in discovery).) The subsequent division of the class into these two subclasses does not materially alter the settlement terms, as the claims asserted by each subclass are the same, require no additional discovery and cause no prejudice. In fact, the only reason for the partition is so the settlement funds can be allocated based on the class members’ pay rates. See, e.g., In re TFT-LCD (Flat Panel) Antitrust Litigation, 267 F.R.D. 583, 591 (N.D. Cal. 2010) (finding no need for an amended complaint where the proposed modifications to the class for class certification purposes were “minor, require no additional discovery, and cause no prejudice to defendants.”). worked by the class members is 10% greater than the estimated amount (i.e. if there are 7,263.2 work weeks, or 12% more work weeks than estimated, the gross settlement amount would increase by $16,000, or 2%). (Id. at ¶ 28.) This amount represents approximately a little over one-sixth of the estimated, hypothetical maximum damages ($4,462,420.26). (ECF No. 61 at 6- 8.) In arguing the settlement is fair, counsel notes the weaknesses in plaintiff’s case, including the need to rely on “unaided memories” and lack of documentation for the rest periods, differences between plaintiff’s diligent recordkeeping and that of less-diligent class members, the low value of the cellphone use policy, and the possibility that some employees received some but not all meal breaks. (Id.) The Settlement Agreement proposes deducting from the $768,000 gross settlement amount the following:

(a) A class representative incentive award of up to $10,000;

(b) Class counsel’s attorney’s fees not to exceed 25% of the total settlement amount;

(c) Class counsel’s litigation costs not to exceed $20,000;

(d) Settlement administrator costs not to exceed $15,000; and

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Ranger v. Shared Imaging, (E.D. Cal. 2023).

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