Facts

On March 29, 2022, Angelica Aguilar, individually and on behalf of other members of the general public similarly situated, brought a putative wage-and-hour class action against Distribution Alternatives Inc., alleging various Labor Code violations. On July 20, 2022, Aguilar filed the operative First Amended Complaint alleging an additional cause of action for civil penalties under the Private Attorney General Act. Pursuant to the Parties' settlement agreement, the class included all hourly, non-exempt employees who are currently or have been directly employed by defendant in California from March 29, 2018, through September 10, 2023.

PLAINTIFF'S CONTENTIONS: Plaintiff alleged that defendant failed to: pay overtime and minimum wages, provide meal periods, permit rest breaks, provide non-compliant wage statements, maintain payroll records, timely pay wages upon termination, timely pay wages during employment, and reimburse for necessary business expenses for its California employees during the relevant time period. Further, plaintiff contended that defendant engaged in unfair and unlawful business practices.

DEFENDANT'S CONTENTIONS: Defendant has denied, and continues to deny any liability whatsoever, denies the factual and legal allegations in the case and contends that it has valid defenses to plaintiff's claims. By agreeing to settle, defendant is not admitting liability on any of the factual allegations or claims in the case or that the case can or should proceed as a class action. Defendant has agreed to settle the case as part of a negotiated compromise with plaintiff of highly contested factual and legal issues.

Settlement Discussions

On April 17, 2023, the parties participated in a full-day mediation before Michael Young, Esq., a well-regarded mediator experienced in mediating complex labor and employment matters.

Result

Distribution Alternatives Inc. agreed to pay $700,000 to settle the case.