LoJack Corp. Agrees to $8.1 Million Settlement in California Labor Law Class Actions

Los Angeles, CA Two California labor law class actions in play for several years appear to be finally in their dying seconds following an agreement by the defendant to pay a multi-million dollar settlement. In so doing, LoJack Corporation was not required to undertake any admission of wrongdoing, liability or violation of law stemming from the California labor lawsuits.

The actions, which have been contested since 2006, alleged LoJack violated labor laws in the state, as well as various tenets of California labor code pertaining to commute time, meal breaks and rest periods, according to the Boston Business Journal (10/18/12).

Law 360 noted that plaintiffs alleged they were required to repair company vehicles while they were on shift, incurring various costs in the process.

California labor employment law reflects strict guidelines governing how and when employees should be paid, and for what. While there are various exemptions for overtime and other issues relating to a particular job classification, there has nonetheless been various examples of discord pitting employee against employer over exemptions, expenses, meal breaks and rest periods which remain entrenched in California and labor law.

The proposed settlement??"which still requires court approval??"is valued at $8.1 million. President and CEO of LoJack Randy L. Oritz noted in a statement appearing in various publications that while LoJack held it had "substantial legal and factual defenses to the plaintiff's claims," in the end LoJack's leadership team and Board of Directors decided, ultimately, that entering into a settlement was in the best interests of the company.

"These legal claims were originally filed in 2006, and plaintiffs asserted claims reaching back to 2002," Ortiz said. "Since then the cases have involved a significant amount of time and expense on pleadings, motions, depositions, and discovery in various state and federal courts. The cases have also required us to look at employment practices of the distant past rather than focus entirely on our present and continuing commitment to the welfare of our employees, the success of our dealer partners and licensees and the strength of our brand."

LoJack is identified as a manufacturer of vehicle-tracking systems. The settlement, putting to bed the twin California labor lawsuits and assuming approval by a judge with the California Superior Court, is widely expected to take care of applicable legal fees incurred by the plaintiffs.

The settlement decision related to the California labor law case isn't expected until the New Year. According to the Boston Business Journal, LoJack expects to record a one-time charge of $6.9 million for their third quarter (Q3) that ended September 30th. Even though $8.1 million was the agreed amount, LoJack may get away with paying less depending upon the final number of class participants.

Had the defendant continued with the two California employee labor law class actions, LoJack estimates it could have cost the company upwards of $30 million. By settling, LoJack not only cuts its potential losses substantially, it also is not required to admit to having done anything wrong…