Facts

Plaintiff Luis Arroyo filed a class action lawsuit against defendant J.R. Simplot Company for wage and hour violations and violations of the Fair Credit Reporting Act, the California Investigative Consumer Reporting Agencies Act and the California Consumer Credit Reporting Agencies Act.

PLAINTIFF'S CONTENTIONS: Plaintiff contended that defendant acquired consumer credit reports in order to conduct background checks on plaintiff and other current and former employees of defendant. Plaintiff contended that the information defendant obtained from the consumer credit reports was used by defendant with their hiring process. However, defendant failed to obtain proper authorization from plaintiffs. Moreover, plaintiff contended that defendant violated the Labor Code and Business and Professions Code by failing to provide plaintiffs their required meal breaks and rest breaks; failing to compensate plaintiffs for wages owed from the missed meal breaks and rest breaks; failing to compensate plaintiffs for minimum wage and overtime wages and for failing to provide plaintiffs accurate itemized wage statements.

DEFENDANT'S CONTENTIONS: Defendant denied the contentions.

Result

The parties agreed to settle the case for $950,000. Out of the settlement amount, $316,666.66 will be awarded as attorney's fees, $25,000 will be awarded as costs, $5,000 will be awarded as service award and $43,000 will be awarded as settlement administration costs.