Proposed California Labor Lawsuit Settlement Worth $4.75 Million

Anaheim, CA A large manufacturer of alloys for the airline industry with a facility in Anaheim has recently agreed to settle with plaintiffs in a class-action lawsuit that accused the manufacturer of shirking its responsibility with regard to overtime pay and minimum wage payments according to California labor law and federal statutes. The defendant denied all allegations and does not formally admit to any wrongdoing in agreeing to the settlement, which still requires judicial approval.

The California labor lawsuit settlement is worth $4.75 million, with the California class reported as reaping the greatest benefit from the settlement. The lawsuit was brought in 2013 and filed in California Federal Court. Universal Alloy Corp. (UAC) maintains headquarters in Canton, Georgia, but also has a large facility at Anaheim.

According to court documents, lead plaintiff Fabio Gonzalez toiled at UAC’s Anaheim plant for about six years, with one of two additional plaintiffs having worked at the Anaheim facility for longer than seven years. A total of 770 class members will share in the settlement, with participants split almost equally with 390 in the California class and the remaining 380 in a class identified with the Fair Labor Standards Act (FLSA).

The California class, however, stands to reap the greatest rewards under California labor employment law, with each California class member expected to receive $7,476 in compensation, v. $840 on average for the FLSA class.

The defendant said that it agreed to settle, in spite of admitting to no wrongdoing and denying the allegations, partly due to the disruption the lawsuit was causing to its business and operations.

In their California labor code lawsuit, plaintiffs alleged that UAC paid factory employees only according to their scheduled shift hours, rather than hours actually worked. There were also allegations that UAC failed to incorporate bonuses into regular rates of pay, which would have resulted in what was described as a systematic miscalculation of overtime, an alleged violation to statutes under California and labor law.

The California labor lawsuit also accused the company of failure to maintain adequate wage statements and records, and failure to provide the required meal and rest breaks as mandated under FLSA guidelines and California labor code.

Plaintiffs in the action seek certification for all current and former nonexempt employees who toiled at the California plant from May 10, 2009 to the present day. They also request certification for a separate, nationwide opt-in class of UAC workers for the same time period, in connection with the company's alleged FLSA violations.

“This settlement provides a substantial recovery, including 100 percent of the alleged underpaid overtime and minimum wages based on defendant’s allegedly improper [conduct],” the plaintiffs state in their proposed settlement motion pertaining to California employee labor law.

US District Judge James V. Selna will undertake judicial review and approval of the proposed settlement. Plaintiffs have requested a hearing for June 16.

The California labor lawsuit is Fabio Gonzalez v. Universal Alloy Corp. et al., Case No. 8:13-cv-00807, in the US District Court for the Ce