LOS ANGELES — A class action wage and overtime claim in California court has reached a preliminary settlement. Verizon California Inc. allegedly provided inaccurate wage statements which were missing information essential to determining if employees were properly paid for all the hours they worked. The settlement, which received preliminary court approval at the end of October, provides $15 million for costs, attorneys’ fees, and compensation. The court also granted class certification. The newly certified class represents California employees paid biweekly who received itemized income statements from the company between April 2009 and May 2011.
The Faulty Wage Statements
Hector Banda, a former Verizon field technician, filed his claim in April 2010. Three months later, Scott Cerkoney filed a similar lawsuit. The two lawsuits were consolidated in 2011 and claimed Verizon violated California labor code when its pay statements did not list the pay period’s beginning date, the various hourly rates applied during that period, or the number of hours worked at each rate. In the consolidated class action, Verizon is alleged to have issued nearly 223,000 wage statements between April 2009 and May 2011 to around 6,800 employees.
Reasons For Settlement
In April of this year, Verizon requested the court throw out the class action claiming Banda received $28,000 from a $6 million settlement in a lawsuit brought against Verizon by the Department of Fair Employment and Housing. By taking part in that settlement, Verizon claims, Banda signed a release to all claims against Verizon. If this is the case, it would mean Banda does not represent the class and does not have a claim in this lawsuit.
An August 2013 LA County Superior Court ruling stated it was unclear whether the maximum penalty under the law would be awarded. The judge questioned whether, under the circumstances, the maximum penalty was warranted given that employees could theoretically use simple math and a calendar to fill in the majority of the missing information. The class members could be entitled to around $100 per wage statement in penalties. But, the cost in certifying the class and litigating the claim in court would likely result in a net zero recovery for the class members, assuming they did receive the maximum penalties for the violations, which is not guaranteed.
Based on this information and after coming to an agreement, the parties decided to settle the dispute outside of court. Around 30 percent of the $15 million will go toward attorneys’ fees, $150,000 will go towards other costs, and the remainder to the class members.
When it comes to wage and overtime claims, some claims are better than others. If you believe you may have a wage or overtime claim, our experienced team of overtime pay lawyers can help you evaluate your situation and discuss your options. Contact us today at (855) 754-2795 or complete our Free Unpaid Overtime Case Review form. 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.