1. What is the action about?
2. What does it mean that the action has settled?
3. What are the important terms of the proposed Settlement?
4. How will the Administrator calculate my payment?
5. How will I get paid?
6. How do I opt-out of the Class Settlement?
7. How do I object to the Settlement?
8. Can I attend the Final Approval Hearing?
9. How can I get more information?
10. What if I lose my Settlement check?
11. What if I change my address?
Plaintiff is a former Ishar employee. The Action accuses Defendants of violating California labor laws by failing to pay overtime wages, minimum wages, wages due during employment and upon termination and failing to provide meal periods, rest breaks and accurate itemized wage statements. Based on the same claims, Plaintiff has also asserted a claim for civil penalties under the California Private Attorneys General Act (Lab. Code, § 2698, et seq.) (“PAGA”). Plaintiff is represented by attorneys in the Action: Daniel Srourian of Srourian Law Firm, P.C., and Jennifer Kramer of Henning Kramer LLP (“Class Counsel.”)
Defendants strongly deny violating any laws or failing to pay any wages and contends it complied with all applicable laws.
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So far, the Court has made no determination whether Defendants or Plaintiff is correct on the merits. In the meantime, Plaintiff and Defendants hired an experienced, neutral mediator in an effort to resolve the Action by negotiating an to end the case by agreement (settle the case) rather than continuing the expensive and time-consuming process of litigation. The negotiations were successful. By signing a lengthy written settlement agreement (“Agreement”) and agreeing to jointly ask the Court to enter a judgment ending the Action and enforcing the Agreement, Plaintiff and Defendants have negotiated a proposed Settlement that is subject to the Court’s Final Approval. Both sides agree the proposed Settlement is a compromise of disputed claims. By agreeing to settle, Defendants does not admit any violations or concede the merit of any claims.
Plaintiff and Class Counsel strongly believe the Settlement is a good deal for you because they believe that: (1) Defendants has agreed to pay a fair, reasonable and adequate amount considering the strength of the claims and the risks and uncertainties of continued litigation; and (2) Settlement is in the best interests of the Class Members and Aggrieved Employees. The Court preliminarily approved the proposed Settlement as fair, reasonable and adequate, authorized the Notice, and scheduled a hearing to determine Final Approval.
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Defendants Will Pay $1,700,000 as the Gross Settlement Amount (Gross Settlement). Defendants have agreed to deposit the Gross Settlement into an account controlled by the Administrator of the Settlement. The Administrator will use the Gross Settlement to pay the Individual Class Payments, Individual PAGA Payments, Class Representative Service Payment, Class Counsel’s attorneys’ fees and expenses, the Administrator’s expenses, and penalties to be paid to the California Labor and Workforce Development Agency (“LWDA”). Assuming the Court grants Final Approval, Defendants will fund the Gross Settlement by January 31, 2026, provided the Judgment entered by the Court becomes final. The Judgment will be final on the date the Court enters Judgment, or a later date if Participating Class Members object to the proposed Settlement or the Judgment is appealed.
Court Approved Deductions from Gross Settlement. At the Final Approval Hearing, Plaintiff and/or Class Counsel will ask the Court to approve the following deductions from the Gross Settlement, the amounts of which will be decided by the Court at the Final Approval Hearing:
Up to $566,667.67 [33.33% of the Gross Settlement] to Class Counsel for attorneys’ fees and up to $30,000 for their litigation expenses. To date, Class Counsel have worked and incurred expenses on the Action without payment.
Up to $10,000 as a Class Representative Award for filing the Action, working with Class Counsel and representing the Class. A Class Representative Award will be the only monies Plaintiff will receive other than Plaintiff’s Individual Class Payment and any Individual PAGA Payment.
Up to $17,235 to the Administrator for services administering the Settlement.
Up to $35,000 for PAGA Penalties, allocated 75% to the LWDA PAGA Payment and 25% in Individual PAGA Payments to the Aggrieved Employees based on their PAGA Period Pay Periods.
Participating Class Members have the right to object to any of these deductions. The Court will consider all objections.
Net Settlement Distributed to Class Members. After making the above deductions in amounts approved by the Court, the Administrator will distribute the rest of the Gross Settlement (the “Net Settlement”) by making Individual Class Payments to Participating Class Members based on their Class Period Workweeks.
Taxes Owed on Payments to Class Members. Plaintiff and Defendants are asking the Court to approve an allocation of 20 % of each Individual Class Payment to taxable wages (“Wage Portion”) and 80 % to non-wage damages and interest (“Non-Wage Portion”). The Wage Portion is subject to withholdings and will be reported on IRS W-2 Forms. Defendants will separately pay employer payroll taxes owed on the Wage Portion. The Individual PAGA Payments are counted as penalties rather than wages for tax purposes. The Administrator will report the Individual PAGA Payments and the Non-Wage Portions of the Individual Class Payments on IRS 1099 Forms.
Although Plaintiff and Defendants have agreed to these allocations, neither side is giving you any advice on whether your Payments are taxable or how much you might owe in taxes. You are responsible for paying all taxes (including penalties and interest on back taxes) on any Payments received from the proposed Settlement. You should consult a tax advisor if you have any questions about the tax consequences of the proposed Settlement.
Need to Promptly Cash Payment Checks. The front of every check issued for Individual Class Payments and Individual PAGA Payments will show the date when the check expires (the void date). If you don’t cash it by the void date, your check will be automatically cancelled, and the monies will be tendered to the Burker King Foundation Emergency Fund, earmarked for use to California grantees, and the money will no longer be available to you.
Requests for Exclusion from the Class Settlement (Opt-Outs). You will be treated as a Participating Class Member, participating fully in the Class Settlement, unless you notify the Administrator in writing, not later than May 27, 2025, that you wish to opt-out. The easiest way to notify the Administrator is to send a written and signed Request for Exclusion by the May 27, 2025, Response Deadline. The Request for Exclusion should be a letter from a Class Member or his/her/their representative setting forth a Class Member’s name, present address, telephone number, and a simple statement electing to be excluded from the Settlement. Excluded Class Members (i.e., Non-Participating Class Members) will not receive Individual Class Payments, but will preserve their rights to personally pursue wage and hour claims against Defendants.
You cannot opt-out of the PAGA portion of the Settlement. Class Members who exclude themselves from the Class Settlement (Non-Participating Class Members) remain eligible for Individual PAGA Payments and are required to give up their right to assert PAGA claims against Defendants based on the facts alleged in the Action.
The Proposed Settlement Will be Void if the Court Denies Final Approval. It is possible the Court will decline to grant Final Approval of the Settlement or decline enter a Judgment. It is also possible the Court will enter a Judgment that is reversed on appeal. Plaintiffs and Defendants have agreed that, in either case, the Settlement will be void: Defendants will not pay any money and Class Members will not release any claims against Defendants.
Administrator. The Court has appointed a neutral company, Simpluris, Inc. (the “Administrator”) to send the Notice, calculate and make payments, and process Class Members’ Requests for Exclusion. The Administrator will also decide Class Member Challenges over Workweeks, mail and re- mail settlement checks and tax forms, and perform other tasks necessary to administer the Settlement. The Administrator’s contact information is contained in FAQ 9.
Participating Class Members’ Release. After the Judgment is final and Defendants have fully funded the Gross Settlement and separately paid all employer payroll taxes), Participating Class Members will be legally barred from asserting any of the claims released under the Settlement. This means that unless you opted out by validly excluding yourself from the Class Settlement, you cannot sue, continue to sue or be part of any other lawsuit against Defendants or related entities for wages and PAGA penalties based on facts and claims, as alleged in the Action and resolved by this Settlement.
The Participating Class Members will be bound by the following release:
All Participating Class Members, on behalf of themselves and their respective former and present representatives, agents, attorneys, heirs, administrators, successors, and assigns, release the Released Parties from any and all claims, damages, or causes of action alleged in, or arising out of, the allegations in the Action that arose during the Class Period and which were alleged, or could have been alleged, by Plaintiff based on any of the factual allegations contained in the Operative Complaint in the Action, including, but not limited to, claims under state, federal or local law including, but not limited to claims for unpaid minimum and overtime wages, claims related to non-compliant meal and rest breaks or periods and nonpayment of premium pay for such, failure to comply with itemized employee wage statement provisions, failure to pay wages due at separation and associated waiting time penalties, failure to timely pay wages during employment, and unfair or unlawful business practices pursuant to California Business and Professions Code § 17200, et seq. based on the aforementioned. The Released Class Claims specifically include, but are not limited to, all claims arising under all statutory references in the Operative Complaint, the corresponding sections of the applicable California Industrial Welfare Commission Wage Orders, and California Business and Profession Code sections 17200, et seq., based on the preceding claims, and California common law of contract, interest, and claims for attorneys’ fees relating in any way to those claims alleged in the Action. Except as set forth in Section 5.3 of this Agreement, Participating Class Members do not release any other claims, including claims for vested benefits, wrongful termination, violation of the Fair Employment and Housing Act, unemployment insurance, disability, social security, workers’ compensation, or claims based on facts occurring outside the Class Period. |
PAGA Release. After the Court’s judgment is final, and Defendants has paid the Gross Settlement and separately paid the employer-side payroll taxes, the LWDA will be deemed to have released the claims that were raised in Plaintiff’s PAGA notice. This means that all Aggrieved Employees, including those who are Participating Class Members and those who opt-out of the Class Settlement, cannot sue, continue to sue or participate in any other PAGA claim against Defendants or its related entities on the claims asserted in Plaintiff’s PAGA notice, or that reasonably could have been asserted based upon the facts and theories asserted in Plaintiff’s PAGA notice.
The PAGA Release is as follows:
The LWDA is deemed to release, through Plaintiff as its proxy, and on behalf of itself and its respective former and present representatives, agents, attorneys, heirs, administrators, successors, and assigns, and to the full extent permitted by law, the Released Parties from any and all claims for civil penalties under PAGA that were alleged, or reasonably could have been alleged, based on the facts and theories in Plaintiff’s PAGA Notice submitted January 26, 2022 that arose during the PAGA Period, including but not limited: (1) unlawful failure to provide uninterrupted off-duty meal periods; (2) unlawful failure to provide uninterrupted off-duty rest periods; (3) unlawful failure to furnish wage statements; (4) unlawful failure to pay minimum wage; (5) violation of California Labor Code section 1199; (6) unlawful failure to pay overtime/double time; (7) unlawful failure to pay wages due upon termination; (8) unlawful failure to provide unpaid balance of full amount of overtime compensation; (9) violation of Labor Code section 204; and (10) violation of Labor Code section 216. |
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Individual Class Payments. The Administrator will calculate Individual Class Payments by (a) dividing the Net Settlement Amount by the total number of Workweeks worked by all Participating Class Members, and (b) multiplying the result by the number of Workweeks worked by each individual Participating Class Member.
Individual PAGA Payments. The Administrator will calculate Individual PAGA Payments by (a) dividing $8,750 by the total number of PAGA Pay Periods worked by all Aggrieved Employees and (b) multiplying the result by the number of PAGA Period Pay Periods worked by each individual Aggrieved Employee.
Workweek/Pay Period Challenges. The number of Class Workweeks you worked during the Class Period and the number of PAGA Pay Periods you worked during the PAGA Period, as recorded in Defendants’ records, are stated in the first page of the Notice. You have until May 27, 2025, to challenge the number of Workweeks and/or Pay Periods credited to you. You can submit your challenge by signing and sending a letter to the Administrator via mail, email or fax. FAQ 9 has the Administrator’s contact information.
You need to support your challenge by sending copies of pay stubs or other records. The Administrator will accept Defendants’ calculation of Workweeks and/or Pay Periods based on Defendants’ records as accurate unless you send copies of records containing contrary information. You should send copies rather than originals because the documents will not be returned to you. The Administrator will resolve Workweek and/or Pay Period challenges based on your submission and on input from Class Counsel (who will advocate on behalf of Participating Class Members) and Defendants’ Counsel. The Administrator’s decision is final. You can’t appeal or otherwise challenge its final decision.
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Participating Class Members. The Administrator will send, by U.S. mail, a single check to every Participating Class Member (i.e., every Class Member who doesn’t opt-out) including those who also qualify as Aggrieved Employees. The single check will combine the Individual Class Payment and the Individual PAGA Payment.
Non-Participating Class Members. The Administrator will send, by U.S. mail, a single Individual PAGA Payment check to every Aggrieved Employee who opts out of the Class Settlement (i.e., every Non-Participating Class Member).
Your check will be sent to the same address as the Notice. If you change your address, be sure to notify the Administrator as soon as possible. FAQ 9 has the Administrator’s contact information.
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Submit a written and signed letter with your name, present address, telephone number and a simple statement that you do not want to participate in the Settlement. The Administrator will exclude you based on any writing communicating your request be excluded. Be sure to personally sign your request, identify the Action as Mireya Velasco v. Ishar Investments, Inc., et al.,Case No. 22CV006649, and include your identifying information (full name, address, telephone number, approximate dates of employment and social security number for verification purposes). You must make the request yourself. If someone else makes the request for you, it will not be valid. The Administrator must be sent your request to be excluded by May 27, 2025 or it will be invalid. FAQ 9 has the Administrator’s contact information.
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Only Participating Class Members have the right to object to the Settlement. Before deciding whether to object, you may wish to see what Plaintiff and Defendants are asking the Court to approve. At least 16 court days before the August 14, 2025 Final Approval Hearing, Class Counsel and/or Plaintiff will file in Court (1) a Motion for Final Approval that includes, among other things, the reasons why the proposed Settlement is fair, and (2) a Motion for Fees, Litigation Expenses and Service Award stating (i) the amount Class Counsel is requesting for attorneys’ fees and litigation expenses; and (ii) the amount Plaintiff is requesting as a Class Representative Service Award. You can view copies of these documents here or the Court’s website (https://eportal.alameda.courts.ca.gov).
A Participating Class Member who disagrees with any aspect of the Agreement, the Motion for Final Approval and/or Motion for Fees, Litigation Expenses and Service Award may wish to object, for example, that the proposed Settlement is unfair, or that the amounts requested by Class Counsel or Plaintiff are too high or too low. The deadline for sending written objections to the Administrator is May 27, 2025. Be sure to tell the Administrator what you object to, why you object and any facts that support your objection. Make sure you identify the Action as Mireya Velasco v. Ishar Investments, Inc., et al., Case No. 22CV006649 and include your name, current address, telephone number and approximate dates of employment for Defendants and sign the objection. FAQ 9 has the Administrator’s contact information.
Alternatively, a Participating Class Member can object (or personally retain a lawyer to object at your own cost) by attending the Final Approval Hearing. You (or your attorney) should be ready to tell the Court what you object to, why you object, and any facts that support your objection. See FAQ 8 (immediately below) for specifics regarding the Final Approval Hearing.
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You can, but don’t have to, attend the Final Approval Hearing on August 14, 2025, at 10:00 a.m. in Department 23 of the Alameda Superior Court, located at 1221 Oak Street, Oakland, CA 94612. At the Hearing, the judge will decide whether to grant Final Approval of the Settlement and how much of the Gross Settlement will be paid to Class Counsel, Plaintiff and the Administrator. The Court will invite comment from objectors, Class Counsel and Defense Counsel before making a decision. You can attend (or hire a lawyer to attend) either personally or remotes. To request a remote appearance, you can contact the Court via email at Dept23@alameda.courts.ca.gov. Check the Court’s website for the most current information.
It’s possible the Court will reschedule the Final Approval Hearing. You should check this website beforehand or contact Class Counsel to verify the date and time of the Final Approval Hearing.
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The Agreement sets forth everything Defendants and Plaintiff have promised to do under the proposed Settlement. The easiest way to read the Agreement, the Judgment or any other Settlement documents is to view them here. You can also telephone or send an email to Class Counsel or the Administrator using the contact information listed below or consult the Superior Court website by going to https://eportal.alameda.courts.ca.gov/ and entering the Case Number for the Action, Case No. 22CV006649. You can also make an appointment to personally review court documents in the Clerk’s Office at the Rene C. Davidson Courthouse, 1225 Fallon Street, Oakland, CA 94612 by calling (510) 891-6004.
Mireya Velasco v. Ishar Investments, et al
c/o Settlement Administrator
P.O. Box 26170
Santa Ana, CA 92799
Tel: (833) 296-0774
Fax Number: (714) 824-8591
Email Address: info@IsharGMSSettlement.com
DO NOT TELEPHONE THE SUPERIOR COURT TO OBTAIN INFORMATION ABOUT THE SETTLEMENT.
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If you lose or misplace your settlement check before cashing it, the Administrator will replace it as long as you request a replacement before the void date on the face of the original check. Following the void date, the funds will be transmitted to the Burger King Foundation Emergency Fund, earmarked for California grantees, and you will have no way to recover the money.
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To receive your check, you should immediately notify the Administrator if you move or otherwise change your mailing address.
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