Plaintiffs are current and former UPS employees. The Action accuses UPS of violating California labor laws by failing to pay minimum wages, reimbursable cell phone expenses, and final wages and failing to provide accurate itemized wage statements. Based on the same claims, Plaintiffs have also asserted claims for civil penalties under the California Private Attorneys General Act (Labor Code §§ 2698, et seq.) (“PAGA”) and a claim under the California Unfair Competition Law for unfair and unlawful business practices, under Business & Professions Code §§ 17200-17208. Plaintiffs are represented by attorneys in the Action: Michael S. Morrison and Erin Lim of Alexander Morrison + Fehr LLP; Michael D. Singer, Isam C. Khoury, and Marta Manus of Cohelan Khoury & Singer; Jonathan M. Lebe of Lebe Law, APC; and Rodney Mesriani of Mesriani Law Group, APLC (“Class Counsel.”)
UPS strongly denies violating any laws or failing to pay any wages and contends it complied with all applicable laws. The Court has made no determination regarding the merits of Plaintiffs’ allegations and has not found UPS to violate any laws.
As noted above, the Court has made no determination whether UPS or Plaintiffs are correct on the merits. In the meantime, Plaintiffs and UPS hired an experienced, neutral mediator who was a retired judge in an effort to resolve the Action by negotiating to end the case by agreement (settle the case) rather than continuing the expensive and time-consuming process of litigation. The negotiations were ultimately 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, Plaintiffs and UPS 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, UPS does not admit any violations or concede the merit of any claims.
Plaintiffs and Class Counsel strongly believe the Settlement is a good deal for you because they believe that: (1) UPS has 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 and Aggrieved Employees. The Court preliminarily approved the proposed Settlement as fair, reasonable and adequate, authorized this Notice, and scheduled a hearing to determine Final Approval.
UPS Will Pay $5,150,000 as the Gross Settlement Amount (Gross Settlement). UPS has 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, Individual PAGA Payments, Class Representative Service Payments, Class Counsel’s attorney’s fees and expenses, the Administrator’s expenses, and penalties to be paid to the California Labor and Workforce Development Agency (“LWDA”). Assuming the Court grants Final Approval, UPS will fund the Gross Settlement not more than 45 (forty-five) days after the Judgment entered by the Court becomes 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. Under certain circumstances identified in the Settlement Agreement, the Gross Settlement may increase.
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:
- Up to $1,716,666.67 (33 1/3% of the Gross Settlement) to Class Counsel for attorneys’ fees and up to $200,000 for their litigation expenses. To date, Class Counsel have worked and incurred expenses on the Action without payment.
- Up to $30,000 each as Class Representative Awards to each Plaintiff for filing the Action, working with Class Counsel and representing the Class. A Class Representative Award will be the only monies each Plaintiff will receive other than each Plaintiff’s Individual Class Payment and any Individual PAGA Payment.
- Up to $82,000 to the Administrator for services administering the Settlement.
- Up to $200,000 for PAGA Penalties, allocated 75% to the LWDA PAGA Payment and 25% in Individual PAGA Payments to the Aggrieved Employees based on their PAGA Period Pay Periods.
Participating Class Members have the right to object to any of these deductions. The Court will consider all objections.
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.
Plaintiffs and UPS are asking the Court to approve an allocation of thirty-three and one-third percent (33 1.3%) of each Individual Class Payment to taxable wages (“Wage Portion”) and the remaining sixty-six and two-thirds percent (66 2/3%) to interest and penalties (with thirty-three and one-third percent (33 1/3%) allocated to interest and thirty-three and one-third percent (33 1/3%) allocated to penalties) (“Non-Wage Portions.). The Wage Portion is subject to withholdings and will be reported on IRS W-2 Forms. UPS will separately pay employer payroll taxes it owes on the Wage Portion. The Individual PAGA Payments are counted as penalties rather than wages for tax purposes. The Administrator will report the Individual PAGA Payments and the Non-Wage Portions of the Individual Class Payments on IRS 1099 Forms, as needed.
Although Plaintiffs and UPS 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.
You will be treated as a Participating Class Member, participating fully in the Class Settlement, unless you notify the Administrator in writing, no later than May 10, 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 May 10, 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 UPS but not PAGA penalties.
You cannot opt out of the PAGA portion of the Settlement. Class Members who exclude themselves from the Class Settlement (Non-Participating Class Members) remain eligible for Individual PAGA Payments and are required to give up their right to assert PAGA claims against UPS based on the PAGA Period facts alleged in the Action.
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 Augustine, et al. v. United Parcel Service, Inc., Lead Case No. BC636468, 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 May 10, 2024, or it will be invalid.
It is possible the Court will decline to grant Final Approval of the Settlement or decline to enter a Judgment. It is also possible the Court will enter a Judgment that is reversed on appeal. Plaintiffs and UPS have agreed that, in either case, the Settlement will be void: UPS will not pay any money and Class Members will not release any claims against UPS.
After the Judgment is final and UPS has 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 UPS or related entities for wages based on the Class Period facts and, regardless of the opt out status, for PAGA penalties based on PAGA Period facts, as alleged in the Action and resolved by this Settlement.
The Participating Class Members will be bound by the following release: All Participating Class Members, on behalf of themselves and their respective former and present representatives, agents, attorneys, heirs, administrators, successors, and assigns, release Released Parties from all claims during Class Period I and Class Period II that were alleged, or reasonably could have been alleged, based on the facts stated in the Operative Complaint. This includes, but is not limited to, claims for statutory, constitutional, contractual or common law claims for wages, damages, unpaid costs or expenses, penalties, liquidated damages, punitive damages, interest, attorneys’ fees, litigation costs, restitution, or equitable relief for violations of the California Labor Code, California Industrial Welfare Commission Wage Orders, and California Business and Professions Code § 17200, et seq. for the following categories of allegations, to the fullest extent such claims are releasable by law: all claims for failure to pay minimum wage (including but not limited to on premises time); all claims for the alleged failure to indemnify and/or reimburse employees for any business expenses; all claims for recordkeeping or pay stub violations; all claims for timely payment of wages and associated penalties; and/or all statutory penalties. Except as set forth in Section 3.10 of this Notice, Participating Class Members do not release any other claims, including claims for vested benefits, wrongful termination, violation of the Fair Employment and Housing Act, unemployment insurance, disability, social security, workers’ compensation, or claims based on facts occurring outside Class Periods I and II. The Participating Class Members understand and agree that this release includes a good faith compromise of disputed wage claims.
After the Court’s judgment is final, and UPS has paid the Gross Settlement (and separately paid the employer-side payroll taxes), all Aggrieved Employees will be barred from asserting PAGA claims against UPS, whether or not they exclude themselves from the Settlement. This means that all Aggrieved Employees, including those who are Participating Class Members and those who opt-out of the Class Settlement, cannot sue, continue to sue, or participate in any other PAGA claim against UPS or its related entities based on the PAGA Period facts alleged in the Action and resolved by this Settlement. However, as stated in Section 9 above, any Aggrieved Employee who excludes themselves from the Settlement will preserve their underlying wage and hour claims.
The Aggrieved Employees’ Releases for Participating and Non-Participating Class Members are as follows: In consideration of the payment of PAGA Penalties, Plaintiffs, on behalf of the State of California, the LWDA, and the Aggrieved Employees, release and discharge the Released Parties of any and all claims for civil penalties during PAGA Period I and PAGA Period II that were alleged, or that reasonably could have been alleged based on the facts asserted, in the Operative Complaint and/or PAGA Notices, including any and all claims for failure to pay minimum wage (including but not limited to on premises time); all claims for the alleged failure to indemnify and/or reimburse employees for any business expenses; all claims for recordkeeping or pay stub violations; and all claims for timely payment of wages. In addition, all Aggrieved Employees (which includes all Participating Class Members and all Non-Participating Class Members who are Aggrieved Employees) are deemed to release, on behalf of themselves and their respective former and present representatives, agents, attorneys, heirs, administrators, successors, and assigns, the Released Parties, from all claims for civil penalties during PAGA Period I and PAGA Period II that were alleged, or that reasonably could have been alleged based on the facts asserted in the Operative Complaint and/or the PAGA Notices, including any and all claims for failure to pay minimum wage (including but not limited to on premises time); all claims for the alleged failure to indemnify and/or reimburse employees for any business expenses, all claims for recordkeeping, or pay stub violations; and all claims for timely payment of wages.
The Administrator will calculate Individual Class Payments by (a) dividing the Net Settlement Amount by the total number of Workweeks worked by all Participating Class Members, and (b) multiplying the result by the number of Workweeks worked by each individual Participating Class Member.
The Administrator will calculate Individual PAGA Payments by (a) dividing $50,000 by the total number of PAGA Pay Periods worked by all Aggrieved Employees and (b) multiplying the result by the number of PAGA Period Pay Periods worked by each individual Aggrieved Employee.
The number of Class Workweeks you worked during either Class Period and the number of PAGA Pay Periods you worked during either PAGA Period, as recorded in UPS’s records, are stated in the first page of your Notice. You have until May 10, 2024 to challenge the number of Workweeks and/or Pay Periods credited to you. You can submit your challenge by signing and sending a letter to the Administrator via mail, email or fax. The Contact Us page of this website has the Administrator’s contact information.
You need to support your challenge by sending copies of pay stubs or other records. The Administrator will accept UPS’s calculation of Workweeks and/or Pay Periods based on UPS’s 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 and/or Pay Period challenges based on your submission and on input from Class Counsel (who will advocate on behalf of Participating Class Members) and UPS’s Counsel. The Administrator’s decision is final. You can’t appeal or otherwise challenge its final decision.
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) including those who also qualify as Aggrieved Employees. The single check will combine the Individual Class Payment and the Individual PAGA Payment, if any.
The Administrator will send, by U.S. mail, a single Individual PAGA Payment check to every Aggrieved Employee who opts out of the Class Settlement (i.e., every Non-Participating Class Member).
Your check will be sent to the same address where you received your mailed Notice. If you change your address, be sure to notify the Administrator as soon as possible. The Contact Us page of this website has the Administrator’s contact information.
Only Participating Class Members have the right to object to the Settlement. Before deciding whether to object, you may wish to see what Plaintiffs and UPS are asking the Court to approve. At least 16 court days before the July 24, 2024 Final Approval Hearing, Class Counsel and/or Plaintiffs 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 Plaintiffs are requesting as Class Representative Service Awards. Upon reasonable request, Class Counsel (whose contact information is in Section 9 of this Notice) will send you copies of these documents at no cost to you. You can also view them on the Administrator’s Website www.AugustineUPSClassAction.com 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 Awards may wish to object, for example, that the proposed Settlement is unfair, or that the amounts requested by Class Counsel or Plaintiffs are too high or too low. The deadline for sending written objections to the Administrator is May 10, 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 Augustine, et al. v. United Parcel Service, Inc., Lead Case No. BC636468 and include your name, current address, telephone number, and approximate dates of employment for UPS and sign the objection. The Contact Us page of this website has the Administrator’s contact information.
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 Section 8 of the Notice (immediately below) for specifics regarding the Final Approval Hearing.
You can, but don’t have to, attend the Final Approval Hearing on July 24, 2024 at 10:30 am 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, Plaintiffs, 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 this website beforehand or contact Class Counsel to verify the date and time of the Final Approval Hearing.
The Agreement sets forth everything UPS and Plaintiffs 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 to the Settlement Documents page of this website. 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. BC636468. 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.
Alexander Morrison + Fehr, LLP
Name of Attorney: Michael S. Morrison
Email Address: mmorrison@amfllp.com
Mailing Address: 1900 Avenue of the Stars, Suite 900
Los Angeles, CA 90069
Telephone: (310) 394-0888
Cohelan Khoury & Singer
Name of Attorney: Michael D. Singer
Email Address: msinger@ckslaw.com
Mailing Address: 605 C Street, Suite 200
San Diego, CA 92101
Telephone: (619) 595-3001
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.