The Action was filed by former employees of Defendants, Wallace Carter; Shaddi Macharia; and Alfredo Castaneda (“Plaintiffs”) and seeks payment of wages for a class of hourly employees (“Class Members”) who worked for either Defendant during the Class Period (September 8, 2022 through May 11, 2025); and penalties under the California Private Attorney General Act (“PAGA”) for all hourly employees who worked for Defendants during the PAGA Period (September 8, 2022 through May 11, 2025) (“Aggrieved Employees”).
By agreeing to settle, Defendants do not admit any violations or concede the merit of any claims.
The proposed Settlement has two main parts: (1) a Class Settlement requiring Defendants to fund Individual Class Payments; and (2) a PAGA Settlement requiring Defendants to fund Individual PAGA Payments and pay penalties to the California Labor and Workforce Development Agency (“LWDA”).
The Court has already preliminarily approved the proposed Settlement. The Court has not yet decided whether to grant final approval. At the Final Approval Hearing, the Court will decide whether to finally approve the Settlement and how much of the Settlement will be paid to Plaintiffs and Plaintiff’s attorneys (“Class Counsel”). The Court will also decide whether to enter a judgment that requires Defendants to make payments under the Settlement and requires Class Members and Aggrieved Employees to give up their rights to assert certain claims against Defendants.
Class Members who worked for Defendants during the Class Period and/or the PAGA Period have two basic options under the Settlement:
Do Nothing. Class Members don’t have to do anything to participate in the proposed Settlement and be eligible for an Individual Class Payment and/or an Individual PAGA Payment. As a Participating Class Member will give up their right to assert Class Period wage claims and PAGA Period penalty claims against Defendant.
Opt-Out of the Class Settlement. Class Members can exclude themselves from the Class Settlement (opt-out) by submitting the written Request for Exclusion or otherwise notifying the Administrator in writing. Class Members who opt-out of the Settlement will not receive an Individual Class Payment. They will, however, preserve their right to personally pursue Class Period wage claims against Defendants, and, if they are an Aggrieved Employee, remain eligible for an Individual PAGA Payment. Class Members cannot opt-out of the PAGA portion of the proposed Settlement.
Defendants will not retaliate against Class Members for any actions taken with respect to the proposed Settlement.
Class Members’ Legal Rights and Options | Deadline | ||
Class Members Don’t Have to Do Anything to Participate in the Settlement | Class Members who do nothing will be a Participating Class Member, eligible for an Individual Class Payment and an Individual PAGA Payment (if any). In exchange, Class Members will give up their right to assert the wage claims against Defendants that are covered by this Settlement (Released Claims). | ||
Class Members Can Opt-out of the Class Settlement but not the PAGA Settlement | Class Members who don’t want to fully participate in the proposed Settlement can opt-out of the Class Settlement by sending the Administrator a written Request for Exclusion. Once excluded, they will be a Non-Participating Class Member and will no longer be eligible for an Individual Class Payment. Non-Participating Class Members cannot object to any portion of the proposed Settlement. See Question 6. Class Members cannot opt-out of the PAGA portion of the proposed Settlement. Defendants must pay Individual PAGA Payments to all Aggrieved Employees and the Aggrieved Employees must give up their rights to pursue Released Claims (defined below). | April 20, 2026 | |
Participating Class Members Can Object to the Class Settlement but not the PAGA Settlement | All Class Members who do not opt-out (“Participating Class Members”) can object to any aspect of the proposed Settlement. The Court’s decision whether to finally approve the Settlement will include a determination of how much will be paid to Class Counsel and Plaintiffs who pursued the Action on behalf of the Class. Class Members are not personally responsible for any payments to Class Counsel or Plaintiffs, but every dollar paid to Class Counsel and Plaintiffs reduces the overall amount paid to Participating Class Members. Class members can object to the amounts requested by Class Counsel or Plaintiffs if they think the amounts are unreasonable. See Question 7. | April 20, 2026 | |
Class Members Can Participate in the July 17, 2026 Final Approval Hearing | The Court’s Final Approval Hearing is scheduled to take place on July 17, 2026. Class Members don’t have to attend but they do have the right to appear (or hire an attorney to appear on their behalf at their own cost), in person, by telephone or by using the Court’s virtual appearance platform. Participating Class Members can verbally object to the Settlement at the Final Approval Hearing. See Question 8. | ||
Class Members Can Challenge the Calculation of Their Workweeks/Pay Periods | The amount of a Class Member’s Individual Class Payment and PAGA Payment (if any) depend on how many Workweeks each Class Member worked at least one day during the Class Period and how many Pay Periods they worked at least one day during the PAGA Period, respectively. Class Members will be noticed with the number of Class Workweeks and number of PAGA Period Pay Periods worked according to Defendants’ records. Class members who disagree with either of these numbers must challenge it by April 20, 2026. See Question 4. | April 20, 2026 | |
Upcoming Important Dates
Dispute Deadline
4/20/2026
Opt Out Deadline
4/20/2026
Objection Deadline
4/20/2026
Final Approval Hearing
7/17/2026