1:21-cv-00239
E.D. Cal.Jan 10, 2025Background
- Plaintiffs, hourly Walmart employees in California, filed a class action alleging uncompensated work time required for COVID-19 screenings before shifts.
- Walmart had a policy of compensating five extra minutes per shift for such screenings, which plaintiffs argued did not cover actual time spent.
- The parties negotiated a proposed class action settlement, comprised of a $5.2 million gross settlement fund, including allocations for attorney fees, service awards, and a PAGA penalty.
- The proposed class included over 200,000 current and former hourly Walmart employees who worked during the relevant period.
- Notice of settlement was mailed and emailed to all potential class members, with few opting out (19/200,000+) and no objections.
- The district court was asked to approve the final settlement, attorney’s fees, service awards, costs, settlement administration, and class certification.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether COVID-19 screening wait time is compensable | Analogous to exit search case; all time under employer control is compensable | Already paid five minutes; wait time minimal; policy covers all | Court finds settlement reasonable in light of dispute |
| Adequacy and fairness of class action settlement | Settlement reflects ~98% of claimed unpaid wages; fair and reasonable | N/A (unopposed) | Approved as fair, adequate, and reasonable |
| Reasonableness of attorney’s fee award (33.33%) | Fee justified due to significant recovery, contingency risk, complexity | N/A (unopposed) | Approved; matches circuit range and lodestar supports |
| Appropriateness of service awards of $10,000 each | High effort and risk taken by named plaintiffs; in line with local precedents | N/A (unopposed) | Approved as fair given class size and involvement |
Key Cases Cited
- Hanlon v. Chrysler Corp., 150 F.3d 1011 (9th Cir. 1998) (standards for class action settlement approval)
- Churchill Vill., L.L.C. v. Gen. Elec., 361 F.3d 566 (9th Cir. 2004) (factors for evaluating class action settlements)
- Officers for Justice v. Civil Serv. Comm’n of S.F., 688 F.2d 615 (9th Cir. 1982) (district court discretion in fairness of class settlements)
- Vizcaino v. Microsoft Corp., 290 F.3d 1043 (9th Cir. 2002) (attorney’s fee calculation methods in class actions)
- In re Bluetooth Headset Prods. Liab. Litig., 654 F.3d 935 (9th Cir. 2011) (signs of collusion in class action settlements)
- Lane v. Facebook, Inc., 696 F.3d 811 (9th Cir. 2012) (court’s obligation to scrutinize class settlements for fairness)
- Stanger v. China Elec. Motor, Inc., 812 F.3d 734 (9th Cir. 2016) (premium for contingency fee counsel in complex litigation)
