Facts

On January 25, 2019, Brandon Steppe filed a class action complaint against Responsible Medical Solutions and Steven Schutz, alleging various Labor Code violations as well as individual claims for retaliation and wrongful termination in violation of public policy. The class included all persons employed in California as hourly, non-exempt employees by Responsible Medical Solutions Corp. at any time between January 25, 2015, and January 10, 2022. Steppe sought civil penalties under California's Private Attorneys General Act and the California Labor Code.

PLAINTIFF'S CONTENTIONS: Plaintiff alleged that defendants failed to: pay straight time overtime wages, pay minimum wages for all hours worked, provide compliant rest periods, provide compliant meal periods, timely pay wages during employment and at separation, provide accurate itemized wage statements and written notice of sick leave, indemnify necessary business expenses, and maintain required payroll records for its California employees during the relevant time period. Further, plaintiff contended that as a result of these violations, defendants engaged in unfair competition in violation of California Unfair Competition Law. Finally, plaintiff argued that he and the settlement class were entitled to unpaid wages, civil penalties, attorneys' fees, statutory penalties, liquidated damages, and costs of litigation, among other remedies

DEFENDANT'S CONTENTIONS: Defendants denied and continue to deny all of Plaintiff's allegations. Specifically, Defendants contend (1) they provided the Class with all meal periods according to law; (2) they provided the Class with all rest periods according to law (3) they did not fail to pay the Class the minimum wage; (4) they did not fail to pay the Class the overtime compensation; (5) they did not require the Class to incur any business-related expenses; (6) they provided the Class with accurate itemized wage statements, consistent with Labor Code Section 226; (7) they did not fail to timely pay the Class wages due and owing upon separation; and (8) they did not violate Business & Professions Code Section 17200, et seq.; (9) the PAGA Group is not entitled to penalties under PAGA; and (10) Defendants are not liable for damages, including unpaid wages, liquidated damages, statutory penalties, attorneys' fees, or costs of litigation to the Class.

Defendants comply with applicable law and believe it has the best employees in the industry. Nevertheless, defending this type of suit is expensive and the defense effort inevitably distracts from the work at hand. Therefore, after lengthy arms-length negotiations the parties agreed to resolve the suit, allowing Responsible to move forward without unnecessary costs and distractions.

Result

Defendants agreed to pay $625,000 to settle the action.