Facts

On March 9, 2020, Ashli Morris notified the Labor and Workforce Development Agency of alleged Labor Code violations by Kids Overcoming LLC. On April 7, 2021, Morris updated the notice to include Kadiant LLC as a defendant. The LWDA took no action, and on June 1, 2020, Morris filed suit on behalf of herself and on behalf of all others similarly situated against Kids Overcoming and Kadiant.

PLAINTIFF'S CONTENTIONS: Plaintiff contended that the defendants had failed to provide meal periods and rest breaks; failed to pay premiums in lieu of missed meals and rest breaks; failed to pay overtime wages; failed to pay minimum wage; failed to provide accurate itemized wage statements; failed to reimburse employees for necessary business expenses; violated the Unfair Competition Law; and were liable for civil penalties under the Private Attorneys General Act.

DEFENDANTS' CONTENTIONS: Defendants denied any wrongdoing or liability and all the plaintiff's material allegations.

Settlement Discussions

The parties underwent private mediation with retired Justice Steven M. Vartabedian on March 9, 2022, during which they came to the terms of their settlement agreement.

Result

The parties reached an agreement wherein the defendants admitted no wrongdoing or liability but agreed to pay $272,500 to settle the class and PAGA claims.