Subject to approval by the Court, the Settlement provides that Defendants will pay a total amount of $675,000 (the “Gross Settlement Amount”) in order to resolve the claims in the Action. This Gross Settlement Amount includes an award of reasonable attorneys’ fees to Class Counsel (not to exceed $225,000), reimbursement of Class Counsel’s litigation costs and expenses (not to exceed $46,000), a service payment to the Class Representative (not to exceed $10,000), settlement administration costs (estimated to not exceed $23,000), payment to the California Labor and Workforce Development Agency for its share of the PAGA penalties (in the amount of $15,000, which equals 75% of the total PAGA penalty amount of $20,000), and payments to Class Members (“Individual Settlement Awards”).
Payments to Participating Class Members: The “Net Settlement Amount” means the Gross Settlement Amount, less the Court-approved amounts for attorneys’ fees and costs, service payment to the Class Representative, settlement administration costs, and the PAGA payment to the LWDA.
Each Class Member whose employment is verified (either by Defendants’ records, or by timely submission of a Verification Form) and who does not submit a timely and valid Exclusion Form (“Participating Class Member(s)”) will receive a share of the Net Settlement Amount (an “Individual Settlement Award”).
Because Defendants did not and do not maintain employment records for the purported Tri-State Class Members, and the parties lack sufficient information to determine the dates of employment or total workweeks for each potential Class Member, the parties have agreed that the Individual Settlement Awards will be determined by dividing the Net Settlement Amount by the total number of Participating Class Members. This calculation will yield the amount of each Class Member’s estimated Individual Settlement Award. In other words, the formula will be as follows: Individual Settlement Award = Net Settlement Amount ÷ Total Number of Participating Class Members.