Facts

Bedabox LLC, dba Shipmonks, is a Florida limited liability company that seeks to use its technology-focused fulfillment services for small and medium-sized ecommerce companies who wish to forward packages to international clients. Companies ship their inventory from their supplier to Shipmonk using Shipmonk's discounted freight rates. From there, Shipmonk, once it receives the product, would take care of performing quality control. As orders from the companies' website start flowing into Shipmonk (due to the integration of the companies' online shopping cart being directly synced with Shipmonk's software so that orders are automatically imported), Shipmonk picks, packs and ships each order, with the customer receiving a tracking number by email. One of Shipmonk's warehouses is located in San Bernardino, California. In April 2019, Eric Scott notified the Labor and Workforce Development Agency (LDWA), while also exhausting his administrative remedies under PAGA. After LDWA failed or refused to investigate Scott's claims, Scott filed a class-action suit.

PLAINTIFFS' CONTENTIONS: Plaintiff Scott and others alleged the following causes of action: failure to pay minimum wage for all hours worked in violation of Labor Code Sections 1194 and 1194.2; failing to pay overtime for all hours worked in violation of Labor Code Section 1194; failure to provide meal periods in violation of Labor Code Sections 512 and 226.7; failure to provide rest breaks in violation of Labor Code Section 226.7; failure to provide accurate itemized statements and maintain records in violation of Labor Code Section 226; failure to pay all wages due upon separation of employment in violation of Labor Code Sections 201 to 203; violation of PAGA and unfair employment acts and practices in violation of California's Unfair Competition Law.

DEFENDANT'S CONTENTIONS: Defendant denied all contentions, asserting it complied with all applicable rules plaintiff alleged defendant to be in violation of.

Settlement Discussions

The parties engaged in mediation with David Lowe, Esq., and in October 6, 2020, after a full day, 10-hour video mediation, the parties agreed to a settlement.

Result

The case settled. Attorney's fees were awarded in the amount of $175,000 plus expenses of $17,384.07. Eric Scott and Brittany Hagman received $10,000 each as class representatives. PAGA settlement of claims and civil penalties totaled $15,000 with $11,250 to the California Labor & Workforce Development Agency and the remaining $3,750 to the participating class members. The settlement administrator, ILYM Group, will receive $20,870.60.