Plaintiff is a former employee of Defendants. The Action accuses Defendants of violating California labor laws by failing to pay minimum wages, (2) overtime wages, (3) premium wages in lieu of meal and rest breaks, (4) reimbursement of business expenses, and (5) final wages at separation of employment. Plaintiff is represented by attorneys in the Action: Zachary M. Crosner, Esq., Jamie K. Serb, Esq. and Sepideh Ardestani, Esq. of Crosner Legal, P.C. (“Class Counsel.”)
Defendants strongly deny violating any laws or failing to pay any wages and contend it complied with all applicable laws.
So far, the Court has made no determination whether Defendants or Plaintiff is correct on the merits. In the meantime, Plaintiff and Defendants hired an experienced, neutral mediator in an effort to resolve the Action by negotiating an to end the case by agreement (settle the case) rather than continuing the expensive and time-consuming process of litigation. The negotiations were successful. By signing a lengthy written settlement agreement (“Agreement”) and agreeing to jointly ask the Court to enter a judgment ending the Action and enforcing the Agreement, Plaintiff and Defendants have negotiated a proposed Settlement that is subject to the Court’s Final Approval. Both sides agree the proposed Settlement is a compromise of disputed claims. By agreeing to settle, Defendants do not admit any violations or concede the merit of any claims.
Plaintiff and Class Counsel strongly believe the Settlement is a good deal for you because they believe that: (1) Defendants have agreed to pay a fair, reasonable and adequate amount considering the strength of the claims and the risks and uncertainties of continued litigation; and (2) Settlement is in the best interests of the Class Members. The Court preliminarily approved the proposed Settlement as fair, reasonable and adequate, authorized this Notice, and scheduled a hearing to determine Final Approval.
Defendants will pay $302,652.00 as the Gross Settlement Amount (Gross Settlement). Defendants have agreed to deposit the Gross Settlement into an account controlled by the Administrator of the Settlement. The Administrator will use the Gross Settlement to pay the Individual Class Payments, Class Representative Service Payment, Class Counsel’s attorney’s fees and expenses, and the Administrator’s expenses. Assuming the Court grants Final Approval, Defendants will fund the Gross Settlement not more than 14 days after the Judgment entered by the Court become final. The Judgment will be final on the date the Court enters Judgment, or a later date if Participating Class Members object to the proposed Settlement or the Judgment is appealed.
1. Court Approved Deductions from Gross Settlement. At the Final Approval Hearing, Plaintiff and/or Class Counsel will ask the Court to approve the following deductions from the Gross Settlement, the amounts of which will be decided by the Court at the Final Approval Hearing:
A. Up to $100,884 (1/3 of the Gross Settlement] to Class Counsel for attorneys’ fees and up to $15,000 for their litigation expenses. To date, Class Counsel have worked and incurred expenses on the Action without payment.
B. Up to $7,500 as a Class Representative Award for filing the Action, working with Class Counsel and representing the Class. A Class Representative Award will be the only monies Plaintiff will receive other than Plaintiff’s Individual Class Payment.
C. Up to $13,500 to the Administrator for services administering the settlement.
Participating Class Members have the right to object to any of these deductions. The Court will consider all objections.
2. Net Settlement Distributed to Class Members. After making the above deductions in amounts approved by the Court, the Administrator will distribute the rest of the Gross Settlement (the “Net Settlement”) by making Individual Class Payments to Participating Class Members based on their Class Period Workweeks.
3. Taxes Owed on Payments to Class Members. Plaintiff and Defendants are asking the Court to approve an allocation of 20% of each Individual Class Payment to taxable wages (“Wage Portion”) and 80% to interest (“Non-Wage Portion.). The Wage Portion is subject to withholdings and will be reported on IRS W-2 Forms. (Defendants will separately pay employer payroll taxes it owes on the Wage Portion. The Administrator will report the Non-Wage Portions of the Individual Class Payments on IRS 1099 Forms.
Although Plaintiff and Defendants have agreed to these allocations, neither side is giving you any advice on whether your Payments are taxable or how much you might owe in taxes. You are responsible for paying all taxes (including penalties and interest on back taxes) on any Payments received from the proposed Settlement. You should consult a tax advisor if you have any questions about the tax consequences of the proposed Settlement.
4. Need to Promptly Cash Payment Checks. The front of every check issued for Individual Class Payments will show the date when the check expires (the void date). If you don’t cash it by the void date, your check will be automatically cancelled, and the monies will be deposited with the California Controller’s Unclaimed Property Fund in your name.
If the monies represented by your check is sent to the Controller’s Unclaimed Property, you should consult the rules of the Fund for instructions on how to retrieve your money.
5. Requests for Exclusion from the Class Settlement (Opt-Outs). You will be treated as a Participating Class Member, participating fully in the Class Settlement, unless you notify the Administrator in writing, not later than March 4, 2024, that you wish to opt-out. The easiest way to notify the Administrator is to send a written and signed Request for Exclusion by the March 4, 2024 Response Deadline. The Request for Exclusion should be a letter from a Class Member or his/her representative setting forth a Class Member’s name, present address, telephone number, and a simple statement electing to be excluded from the Settlement. Excluded Class Members (i.e., Non-Participating Class Members) will not receive Individual Class Payments but will preserve their rights to personally pursue wage and hour claims against Defendants.
6. The Proposed Settlement Will be Void if the Court Denies Final Approval. It is possible the Court will decline to grant Final Approval of the Settlement or decline enter a Judgment. It is also possible the Court will enter a Judgment that is reversed on appeal. Plaintiffs and Defendants have agreed that, in either case, the Settlement will be void, Defendants will not pay any money and Class Members will not release any claims against Defendants.
7. Administrator. The Court has appointed a neutral company, Atticus Administration (the Administrator”) to send this Notice, calculate and make payments, and process Class Members’ Requests for Exclusion. The Administrator will also decide Class Member Challenges over Workweeks, mail and re-mail settlement checks and tax forms, and perform other tasks necessary to administer the Settlement. The Administrator’s contact information is located HERE.
8. Participating Class Members’ Release. After the Judgment is final and Defendants have fully funded the Gross Settlement (and separately paid all employer payroll taxes), Participating Class Members will be legally barred from asserting any of the claims released under the Settlement. This means that unless you opted out by validly excluding yourself from the Class Settlement, you cannot sue, continue to sue, or be part of any other lawsuit against Defendants or related entities for wages based on the Class Period facts, as alleged in the Action and resolved by this Settlement.
The Participating Class Members will be bound by the following release:
Plaintiff and each member of the Settlement Class releases Defendants and any parent, subsidiary, affiliate, including but without limitation to Dimension Hospitality, LLC, predecessor or successor, franchisor, franchisee, and all agents, employees, officers, directors, attorneys, and insurers thereof (collectively the “Released Parties”), from any and all claims, debts, liabilities, demands, obligations, guarantees, costs, expenses, attorneys’ fees, damages, or causes of action contingent or accrued for, that are pleaded, or that could have been pleaded, based on the allegations and claims asserted in the operative Complaint, including any claims for alleged unpaid overtime wages, unpaid minimum wages, failure to receive final pay upon termination, alleged unpaid meal and rest period premiums, failure to reimburse, failure to furnish accurate and itemized wage statements, failure to maintain required records, and waiting time penalties, arising under the California Labor Code, IWC Wage Orders, or Business & Professions Code (including Section 17200 et seq.). This release shall apply to all claims arising at any point during the Class Period.
1. Individual Class Payments. For purposes of settlement, the “Net Settlement Amount” will be defined as the Gross Settlement Amount, less Court approved settlement administration costs, attorneys’ fees and costs, and the service award. Each Class Member who does not opt out will be entitled, provisionally, to a share or shares of the Net Settlement Amount, which shall be a fixed proportional amount of the Net Settlement Amount per Workweek. The amount of each Class Member’s Individual Settlement Payment will be calculated based upon the total number of Workweeks each Class Member worked for Defendants during the Class Period. Individual Workweeks worked by Class Members who did not execute an arbitration agreement will equal 100% of a Workweek. Individual Workweeks worked by Class Members who have executed an arbitration agreement will equal one half (50%) of a Workweek. The Parties will develop a distribution formula for payments to Class Members based on the number of Workweeks for each Class Member. Defendants’ payroll records shall control, but Class Members will have the right to challenge their number of workweeks.
2. Workweek Challenges. The number of Class Workweeks you worked during the Class Period, as recorded in Defendants’ records, are stated on the first page of this Notice. You have until March 4, 2024 to challenge the number of Workweeks. You can submit your challenge by signing and sending a letter to the Administrator via mail, email, or fax. The Administrator’s contact information can be found HERE.
You need to support your challenge by sending copies of pay stubs or other records. The Administrator will accept Defendants’ calculation of Workweeks based on Defendants’ records as accurate unless you send copies of records containing contrary information. You should send copies rather than originals because the documents will not be returned to you. The Administrator will resolve Workweek challenges based on your submission and on input from Class Counsel (who will advocate on behalf of Participating Class Members) and Defendants’ Counsel. The Administrator’s decision is final. You can’t appeal or otherwise challenge its final decision.
Participating Class Members. The Administrator will send, by U.S. mail, a single check to every Participating Class Member (i.e., every Class Member who doesn’t opt-out).
Your check will be sent to the same address as this Notice. If you change your address, be sure to notify the Administrator as soon as possible. The Administrator’s contact information can be found HERE.
Submit a written and signed letter with your name, present address, telephone number, and a simple statement that you do not want to participate in the Settlement. The Administrator will exclude you based on any writing communicating your request be excluded. Be sure to personally sign your request, identify the Action as Roxanne Welcker v. Dimension Development Company, Inc., et. al., Case Number 22STCV06409, and include your identifying information (full name, address, telephone number, approximate dates of employment, and social security number for verification purposes). You must make the request yourself. If someone else makes the request for you, it will not be valid. The Administrator must be sent your request to be excluded by March 4, 2024, or it will be invalid. The Administrator’s contact information is located HERE.
Only Participating Class Members have the right to object to the Settlement. Before deciding whether to object, you may wish to see what Plaintiff and Defendants are asking the Court to approve. At least 16 Court days before the May 17, 2024 Final Approval Hearing, Class Counsel and/or Plaintiff will file in Court (1) a Motion for Final Approval that includes, among other things, the reasons why the proposed Settlement is fair, and (2) a Motion for Fees, Litigation Expenses and Service Award stating (i) the amount Class Counsel is requesting for attorneys’ fees and litigation expenses; and (ii) the amount Plaintiff is requesting as a Class Representative Service Award. Upon reasonable request, Class Counsel (whose contact information is in Question 9 below) will send you copies of these documents at no cost to you. You can also view them HERE or the Court’s website: https://www.lacourt.org/ .
A Participating Class Member who disagrees with any aspect of the Agreement, the Motion for Final Approval and/or Motion for Fees, Litigation Expenses and Service Award may wish to object, for example, that the proposed Settlement is unfair, or that the amounts requested by Class Counsel or Plaintiff are too high or too low. The deadline for sending written objections to the Administrator is March 4, 2024. Be sure to tell the Administrator what you object to, why you object, and any facts that support your objection. Make sure you identify the Action Roxanne Welcker v. Dimension Development Company, Inc., et. al., Case Number 22STCV06409 and include your name, current address, telephone number, and approximate dates of employment for Defendants and sign the objection. The Administrator’s contact information is located HERE.
Alternatively, a Participating Class Member can object (or personally retain a lawyer to object at your own cost) by attending the Final Approval Hearing. You (or your attorney) should be ready to tell the Court what you object to, why you object, and any facts that support your objection. See Question 8, immediately below, for specifics regarding the Final Approval Hearing.
You can, but don’t have to, attend the Final Approval Hearing on May 17, 2024 at 10:30 a.m. in Department 1 of the Los Angeles Superior Court, located at 312 North Spring Street, Los Angeles, CA 90012. At the Hearing, the judge will decide whether to grant Final Approval of the Settlement and how much of the Gross Settlement will be paid to Class Counsel, Plaintiff, and the Administrator. The Court will invite comment from objectors, Class Counsel and Defense Counsel before making a decision. You can attend (or hire a lawyer to attend) either personally or virtually via LACourtConnect (https://www.lacourt.org/lacc/). Check the Court’s website for the most current information.
It’s possible the Court will reschedule the Final Approval Hearing. You should check with the Administrator, or contact Class Counsel to verify the date and time of the Final Approval Hearing.
The Agreement sets forth everything Defendants and Plaintiff have promised to do under the proposed Settlement. The easiest way to read the Agreement, the Judgment or any other Settlement documents is to go HERE. You can also telephone or send an email to Class Counsel or the Administrator using the contact information listed below, or consult the Superior Court website by going to (http://www.lacourt.org/casesummary/ui/index.aspx) and entering the Case Number for the Action, Case No. 22STCV06409. You can also make an appointment to personally review court documents in the Clerk’s Office at the Stanley Mosk Courthouse by calling (213) 830-0800.
DO NOT TELEPHONE THE SUPERIOR COURT TO OBTAIN INFORMATION ABOUT THE SETTLEMENT.
| Class Counsel: | Settlement Administrator: |
| Zachary M. Crosner, Esq. zach@crosnerlegal.com Jamie K. Serb, Esq. jamie@crosnerlegal.com Sepideh Ardestani, Esq. sepideh@crosnerlegal.com CROSNER LEGAL, PC 9440 Santa Monica Blvd. Suite 301 Beverly Hills, CA 90210 Tel: (310) 496-5818 Fax: (310) 510-6429 | Atticus Administration Email Address: WelckerSettlement@AtticusAdmin.com PO Box 64053 St. Paul, MN 55164 Telephone: 1-800-305-9833 Fax Number: 1-888-326-6411 |
If you lose or misplace your settlement check before cashing it, the Administrator will replace it as long as you request a replacement before the void date on the face of the original check. If your check is already void, you should consult the Unclaimed Property Fund for instructions on how to retrieve the funds.
To receive your check, you should immediately notify the Administrator if you move or otherwise change your mailing address.