Valencia v. VF Outdoor, LLC

District Court, E.D. California·Decided February 19, 2025·No. 1:20-cv-01795·Unknown

Opinion

BRIANA VALENCIA, an individual, No. 1:20-cv-01795-KES-SKO Plaintiff, v. ORDER DENYING MOTION FOR APPROVAL OF PAGA SETTLEMENT VF OUTDOOR, a California limited WITHOUT PREJUDICE liability corporation, Defendant. (Doc. 109)

On December 11, 2024, plaintiff Briana Valencia filed an unopposed motion for judicial approval of her settlement with defendant VF Outdoor, LLC, (“VF Outdoor”) of her California Private Attorneys General Act of 2004, Cal. Labor Code § 2698 et seq. (“PAGA”) (West 2016), claims in this action.1 Doc. 109 (“Mot.”). As addressed below, Valencia fails to provide

1 The version of PAGA in effect prior to July 1, 2024 applies in this case. The current version of PAGA, effective since July 1, 2024, states that “the amendments made to this section by the act adding this subdivision shall apply to a civil action brought on or after June 19, 2024.” Cal. Lab. Code § 2699(v)(1) (West 2024). This action was originally filed on August 27, 2019, so the Court must apply the version of PAGA that was in effect from June 27, 2016 to June 30, 2024. See Anderson v. Safe Streets USA, LLC, No. 2:18-cv-00323-KJM-JDP, 2024 WL 4826446, at *5 (E.D. Cal. Nov. 19, 2024) (applying prior version of PAGA to case that was filed before 2024 amendments); Morel v. HNTB Corp., No.: 22-cv-00408-AJB-AHG, 2025 WL 242084, at *18 n.11 (S.D. Cal. Jan. 17, 2025) (same). From this point forward, all citations are to the version of PAGA in effect from June 27, 2016 to June 30, 2024. sufficient explanation of, or support for, the facts and assumptions on which the proposed settlement is based. Valencia’s motion also contains factual discrepancies and appears to be inconsistent in certain respects with the parties’ settlement agreement. On this record, the Court cannot determine whether the settlement is fair, reasonable, and accurate. Accordingly, the Court denies the motion without prejudice. I. Background Defendant VF Outdoor is an apparel and footwear company that owns numerous clothing brands such as Vans, North Face, Dickies, and Jansport. Doc. 71-4 ¶ 2. VF Outdoor has four distribution centers in California which are independently managed, and each employs many hourly, non-exempt employees. Id. ¶¶ 3–5. Plaintiff Briana Valencia is an hourly, non-exempt employee at VF Outdoor’s warehouse in Visalia, California. Doc. 65-4 ¶ 2. As required by PAGA, on June 20, 2019, Valencia provided notice to VF Outdoor and to the California Labor & Workforce Development Agency (“LWDA”), the agency charged with enforcing the relevant provisions of the California Labor Code, that she intended to sue based on VF Outdoor’s alleged violations. Mot. at 10; Doc. 109-1 (“Treglio Decl.”) ¶¶ 4, 17; Doc. 109-2 at 15–33. On August 27, 2019, Valencia filed this putative class and representative action in Alameda County Superior Court, asserting various state law causes of action. Doc. 1-1. Valencia alleges that each of VF Outdoor’s four distribution centers required all hourly, non-exempt employees to go through a security check and then walk to their assigned workstations before they could “clock in” for work. Doc. 1-1 (“Operative Compl.”) ¶¶ 24–26. Then, whenever those employees left the distribution centers, after finishing their shifts or to take a meal or rest period, they were required to “clock out” at their workstations and go through the security check again before leaving the distribution center. Id. Valencia’s claims are based on her assertion that VF Outdoor was required to pay employees for the time spent going through the security checks. Id. ¶¶ 24–26, 71–140. Valencia asserts causes of action for: (1) failure to pay minimum wages in violation of California Labor Code §§ 1194, 1197, and 1198; (2) failure to pay overtime compensation in violation of California Labor Code §§ 510, 1194, and 1198; (3) failure to provide meal periods in violation of California Labor Code §§ 226.7, 512, and 1198; (4) failure to provide rest periods in violation of California Labor Code §§ 226.7 and 1198; (5) failure to provide accurate wage statements in violation of California Labor Code §§ 226 and 1198; (6) failure to pay wages owed in a timely manner in violation of California Labor Code § 204; (7) unfair business practices in violation of California Business & Professions Code § 17200, et seq.; and (8) penalties under PAGA. See Doc. 1-1 at ¶¶ 71–157. Each claim arises from the uncompensated time that employees spent going through the security check. See id. On October 28, 2019, VF Outdoor removed the action to the United States District Court for the Northern District of California pursuant to the Class Action Fairness Act, 28 U.S.C. § 1332(d)(2).2 Doc. 1. The action was subsequently transferred to this Court. Doc. 41. Thereafter, the Court denied class certification twice. Doc. 64 (“First F&R”); Doc. 68 (“First Order Adopting”); Doc. 89 (“Second F&R”); Doc. 91 (“Second Order Adopting”).3 Although no class was certified, Valencia is able to maintain her PAGA claim as a representative of the State of California and to seek civil penalties pursuant to PAGA. See id. at 6–10; Sakkab v. Luxottica Retail N.A., Inc., 803 F.3d 425, 435–36 (9th Cir. 2015) (“As the state’s proxy, an employee-plaintiff may obtain civil penalties for violations committed against absent employees, Cal. Lab. Code § 2699(g)(1), just as the state could if it brought an enforcement action directly.”). Nearly two years after the last denial of her motion for class certification, the parties entered into a settlement agreement in this action. Doc. 107. Valencia provided the required notice of settlement to the LWDA. Doc. 109-2, Ex. C, at 32–33. Valencia now moves for judicial approval of the settlement, Doc. 109 (“Mot.”), as required by PAGA, Cal. Lab. Code § 2699(l)(2). On January 16, 2024, the Court took the motion

2 Although this Court never certified a class, the Court retained jurisdiction under 28 U.S.C. § 1332(d)(2). “If [a] putative class action was properly removed to begin with, the subsequent denial of Rule 23 class certification does not divest the district court of jurisdiction. The case remains removed and is not to be remanded to state court.” United Steel, Paper & Forestry, Rubber, Mfg., Energy, Allied Industrial & Serv. Workers Int’l Union, AFL-CIO, CLC v. Shell Oil Co., 602 F.3d 1087, 1089 (9th Cir. 2010).

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Valencia v. VF Outdoor, LLC, (E.D. Cal. 2025).

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