Facts

On April 6, 2021, Joseph Koutny, individually and on behalf of all others similarly situated and aggrieved employees, brought a putative wage-and-hour class action against PAE Aviation and Technical Services, LLC, PAE Applied Technologies, LLC, PAE National Security Solutions, LLC, PAE Shared Services, LLC, PAE Professional Services, LLC, PAE Government Services, Inc., alleging various Labor Code violations. Koutny was a non-exempt, hourly-paid employee of defendants. The class included all current and former non-exempt employees who worked in California for defendants at any time from April 6, 2017, through September 20, 2022. Defendants estimated that there were 3,217 class members. On March 31, 2022, the parties participated in a full-day mediation before Mark S. Rudy.

PLAINTIFF'S CONTENTIONS: Plaintiff alleged that defendants failed to: pay overtime wages, pay minimum wages, provide compliant meal periods or compensation in lieu thereof, provide compliant rest periods or compensation in lieu thereof, pay all wages upon separation from employment, issue accurate and compliant wage statements, and indemnify necessary expenditures or losses 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 the California Business & Professions Code.

DEFENDANTS' CONTENTIONS: Defendants denied all contentions.

Result

Defendants agreed to pay $5,500,000 to settle all claims.