LOS ANGELES — Smart & Final Stores LLC received final court approval of its $3 million settlement intended to resolve a California class action wage and overtime lawsuit. The complaint alleges more than 16,000 employees were denied proper compensation for all of the hours they worked. The retail workers were allegedly denied overtime wages as well as rest and meal breaks, which state law requires. The company continues to deny the allegations, but has decided to settle to avoid the likely business disruptions associated with a long and expensive litigation.
Settling Two Lawsuits
In December 2012, Matthew Thompson filed the initial lawsuit which was followed six months later by a putative class action lawsuit filed by Raquel Manzo. The two suits collectively claimed the bulk good retailer required off-the-clock work and failed to pay at least minimum wage, to pay for all hours worked, to factor in premium Sunday pay when calculating overtime wages, and to reimburse employees for business expenses. In October 2013, the two lawsuits were related and Thompson’s claim took the lead.
The counsel for both lawsuits participated in joint mediation. Manzo’s settlement received final approval in early September, but Thompson’s settlement did not gain approval until in mid-November. The majority of the $3 million for the Thompson settlement will be divided among 16,352 current and former Smart & Final employees.
Fairness Hearings
Before a settlement offer can be finalized, the offer and the parties must attend a final fairness hearing. In fact, the offer must receive preliminary approval from the court before it can be sent to the class members for approval. Once the class members have had a chance to review the settlement, they have the option of commenting and opting-out of the settlement. After this review period has passed, the parties present the final settlement, along with information on how many class members have opted out of the settlement to the court. The court will then determine if the settlement appears to be fair to both parties, though the concern is usually the fairness to the employees in these situations as employers frequently have greater power, resources, and influence. If the court determined the settlement is fair the settlement can be finalized and the claim can be resolved.
If you are a retailer employee who has received compensation for all of the hours you have worked or your pay stubs do not clearly reflect all of the hours you have worked, you may have a wage and overtime claim. Contact our experienced team of overtime pay lawyers today to discuss your situation. We can be reached at (855) 754-2795 or you can complete the Free Unpaid Overtime Case Review form and our knowledgeable team will evaluate your case. If we accept your case, we will represent you under our No Fee Promise. This means there are no legal fees or costs unless you receive a settlement.