Facts

Mohammed Rahman, Alicia Diaz, and Pascal Moore brought a class action against Gate Gourmet, Inc., and gategroup U.S. Holding, Inc. The class included all individuals, who according to Gate Gourmet's records, worked for Gate Gourmet as non-exempt in California at any time during the class period.

PLAINTIFFS' CONTENTIONS: Plaintiffs contended that Gate Gourmet violated California law by failing to pay all hours worked; failing to pay minimum wages; failing to pay overtime wages; failing to authorize and permit and/or make available meal periods; failing to authorize and permit and/or make available rest periods; failing to timely pay earned wages during employment; failing to provide accurate itemized wage statements, failing to timely pay wages upon separation; failing to pay all wages due on regularly scheduled paydays; and violating the California Business and Professions Code. Based on these allegations, plaintiffs further sought recovery of penalties under the Private Attorneys General Act (PAGA) and injunctive relief.

DEFENDANTS' CONTENTIONS: Defendants denied all contentions.

Settlement Discussions

The parties participated in a mediation with mediator Hunter Hughes, III, and ultimately accepted the mediator's proposal for the settlement of plaintiffs' claims.

Result

The parties reached an agreement wherein the defendant admitted no wrongdoing or liability but agreed to pay $3.85 million to settle class member's and PAGA claims.