Oliveira v. Language Line Services, Inc.
5:22-cv-02410-PCP
| N.D. Cal. | Aug 2, 2024Background:
- Plaintiffs, former interpreters for On Line Interpreters, Inc. (OLI) and Language Line Services, Inc. (LLS), filed a collective and class action alleging various wage-and-hour violations.
- They claimed unpaid minimum and overtime wages, non-compliant rest and meal breaks, inaccurate wage statements, unreimbursed business expenses, "off-the-clock" work, and unfair business practices under federal (FLSA), California (including PAGA), and Ohio law.
- The parties engaged in substantial discovery and two mediations after litigation began before reaching a proposed settlement.
- The settlement covers three groups: a nationwide FLSA collective, a California class, and a PAGA subclass of California employees, with over 8,900 individuals receiving notice.
- Defendants will pay a maximum of $3,725,000, covering payouts to class/collective members, named plaintiffs, attorney’s fees/expenses, and administrative costs.
- The Court granted preliminary approval for the settlement, class certifications for settlement purposes, and set a schedule for notice, objections, and a final approval hearing in January 2025.
Issues:
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether proposed settlement is fair, reasonable, and adequate (Rule 23/FLSA) | Settlement provides meaningful recovery for wage violations and was reached after arm's length negotiation | Settlement is fair, resolves disputed claims, and avoids litigation risks | Approved: Settlement preliminarily found fair and reasonable, meeting Rule 23 and FLSA standards |
| Conditional certification of the FLSA collective and Rule 23 class for settlement | Classes satisfy numerosity, commonality, typicality, and adequacy; collective is similarly situated | Does not oppose certification for settlement purposes | Certified: Court conditionally certifies collective and class for settlement purposes only |
| Sufficiency of notice to class and opt-in/opt-out process | Notice plan effectively informs members and ensures opportunity to participate/object | Notice process is adequate and consistent with law | Approved: Notices and procedures to be disseminated and administered as proposed |
| Equitable and adequate allocation/distribution of settlement funds | Allocation provides fair per-member payouts based on claims and class periods | Distribution plan is equitable, with proportional sharing if fees/costs reduced | Approved: Allocations and re-distribution processes preliminarily accepted |
Key Cases Cited
- In re Volkswagen "Clean Diesel" Mktg., Sales Pracs., & Prod. Liab. Litig., 229 F. Supp. 3d 1052 (N.D. Cal. 2017) (articulates two-step process for class action settlement approval)
- Campbell v. City of Los Angeles, 903 F.3d 1090 (9th Cir. 2018) (defines FLSA conditional certification standard)
- Briseño v. Henderson, 998 F.3d 1014 (9th Cir. 2021) (warns of risk of collusion in pre-certification settlements)
- Nen Thio v. Genji, LLC, 14 F. Supp. 3d 1324 (N.D. Cal. 2014) (sets standard for FLSA settlement approval)