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Case ID: 4759 | Employment | 04/13/2006
Earl Scheib, Inc. reached an agreement to settle a class action lawsuit related to how the Company's California division classified certain employees under California overtime law over an approximately seven year period.
The lawsuit, which was filed in March 2000, is similar to numerous lawsuits filed against retailers and other employers with operations in California. While the Company denies the allegations underlying the lawsuit, it has agreed to the settlement to avoid additional legal fees, other expenses and management time that would have to be devoted to protracted and uncertain litigation. Under the agreement, which is subject to approval by the California Superior Court for the County of Los Angeles, approximately 450 current and former employees will be entitled to make verified claims to share in the settlement. The maximum amount of the settlement, including claim payments and related taxes and expenses, administrative fees and class counsel fees and expenses is $750,000. The Company's maximum portion of the settlement is $250,000 all of which has been previously accrued on the Company's balance sheets. Earl Scheib, Inc., founded in 1937, is a nationwide operator of 103 auto paint and body shops located in approximately 100 cities throughout the United States. In addition, through a wholly owned subsidiary, Earl Scheib manufactures paint coating systems that are used not only by its paint and body shops, but are also sold to original equipment manufacturers and architectural firms. At Lawcash.com, it is our goal to keep you informed about important legal cases, class actions and settlements. Our lawyers offer free legal evaluations in tort cases, class actions, personal injury, and other lawsuits because we are dedicated to helping you resolve your legal complaints. Other Employment Cases of Interest The court has certified a class of African American employees of Florida state mental hospitals who are seeking pension compensation as "special risk" employees based on their duties at the facilities, which often bring them in direct contact with dangerous residents.
A statewide class and collective action has been filed in New York against payroll giant, Paychex, Inc. The action is brought on behalf of all current and former employees who, since December 22, 1997, worked in either inside insurance sales or payroll service sales and were not paid overtime compensation. The action is brought under both New York labor law and the federal Fair Labor Standards Act and seeks back pay, statutory and liquidated damages as well as injunctive and declaratory relief. As a collective action, all potential claimants are required to voluntarily "opt-in" to be a considered a member of the class. The employees have requested that the court issue notice to all potential claimants. A statewide collective action has been filed in New York by security guards employed by the Wackenhut Corporation. The action is brought on behalf of all security guards employed by Wackenhut who were not paid overtime hours for time worked during "the turnover" period, or the time when relief guards came in to take over duties from the outgoing guards. According to the guards, Wackenhut has violated the federal Fair Labor Standards Act as well as New York labor law. The action seeks compensatory and liquidated damages as well as declaratory and injunctive relief. As a collective action, all potential claimants must "opt-in" to the action in order to be considered. The guards have requested that the court issue notice to all potential claimants. A class action lawsuit has been filed in the United States Disctict Court for the Middle District of Alabama against Green Tree Servicing, LLC. The case involves violations of employment law and focuses on the Fair Labor Standards Act (FLSA). No additional information about the substance of the allegations is available at this time. Classactionamerica.com will monitor this case and provide additional details as soon as they become available. A statewide class action has been filed in New York against Courtesy Mobil Gas Stations, Inc. and its corporate owners, Sammy and Musa Eljamal. The action is brought on behalf of all current and former employees, who since January 1998, were allegedly not paid proper overtime compensation, not paid proper minimum wage, were defrauded of tax funds and who were forced to accept improper wages in the form of cash payments. The action is brought under various provisions of the federal Fair Labor Standards Act, as well as New York labor law, and seeks statutory, liquidated and compensatory damages as well as back wages and injunctive and declaratory relief. The action is brought both as class action under state law, and as collective action under federal law. As a collective action, all potential claimants must "opt-in" to the case in order to be considered a claimant. The employees have requested that the court issue notice to all potential claimants to inform them of their rights. A statewide collective action has been filed in Florida against Landmark Credit Services, Inc. The action is brought on behalf of all current and former employees, who since April 2001, were not paid proper statutory overtime for all hours worked beyond 40 per week. The action is brought under the federal Fair Labor Standards Act and seeks statutory and liquidated damages as well as declaratory and injunctive relief. As a collective action, all potential claimants are required to "opt-in" to the action in order to be considered part of the class. The employees have requested that the court issue notice to all potential class members. |
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