Facts

On May 24, 2021, Jose Alcala-Luna brought a class action against Me Gusta Gourmet Foods Inc., a restaurant in Pacoima, California, alleging various wage and hour violations. The class included all persons employed by Me Gusta Gourmet Foods Inc. in California and classified as a non-exempt employee who worked for Me Gusta Gourmet Foods Inc. from May 24, 2017 to September 4, 2022. On June 6, 2022, Vilma Diaz Pineda, Josue Diaz Pineda, and Maribel Lozano Martinez filed a complaint against Me Gusta Gourmet Foods Inc. On July 21, 2022, Jose Alcala-Luna, Josue Diaz Pineda, Vilma Diaz Pineda, and Maribel Lozano Martinez filed a first amended complaint adding Labor Code violations and Private Attorneys General Act claims (PAGA). Based on a review of its records as of June 21, 2022, Me Gusta Gourmet Foods Inc. estimated there were two hundred fifty-six Class Members who collectively worked a total of fifty thousand Workweeks, and two hundred twenty-six Aggrieved Employees who worked a total twelve thousand one hundred twenty-six PAGA Pay Periods.

PLAINTIFFS' CONTENTIONS: Plaintiffs alleged that defendant failed to: pay wages including minimum wages and overtime, provide rest periods or premium compensation in lieu thereof, provide meal periods or premium compensation in lieu thereof, pay wages due at separation of employment, reimburse for business expenditures, and provide accurate itemized wage statements to its non-exempt California employees during the class periods.

DEFENDANT'S CONTENTIONS: Defendant denied all contentions.

Settlement Discussions

On July 6, 2022, the parties participated in an all-day mediation presided over by Honorable Carl West (Retired) which led to a settlement agreement.

Result

Me Gusta Gourmet Foods Inc. agreed to pay $1.1 million to settle all claims.