JC Penney Unit Reaches Unpaid Overtime Class Action Settlement

Last week, the plaintiffs in a class action lawsuit accusing JC Penney subsidiary JCP Logistics Inc. of failing to pay overtime asked a judge to preliminarily approve a proposed settlement.

If approved, this wage and hour settlement would resolve a class action lawsuit filed by plaintiff Alejandro C. Sequeira Ruiz in October 2013, which asserted claims for relief based upon JCP Logistics’ alleged failure to pay wages for hours worked, failure to pay overtime, inaccurate or incomplete wage statements, unpaid wages at discharge, and violations of California labor law.

According to the unpaid overtime class action lawsuit, Ruiz worked as a non-exempt employee at the Buena Park merchandise distribution facility until he was involuntarily terminated in January 2013. Ruiz alleges that JCP Logistics used the wrong formula under California law when it calculated overtime pay as part of bonuses it paid to employees.

JCP Logistics denies the allegations and maintains that it complied fully with California law. However, it has agreed to settle the unpaid overtime class action lawsuit to avoid the expense and uncertainty associated with ongoing litigation.

“After extensive arms-length negotiations, including a full-day mediation before an experienced mediator, the Parties have reached a proposed Settlement with an all-cash value of $900,000,” the plaintiffs state in their motion seeking preliminary approval of the unpaid overtime class action settlement.

Class Members of the proposed wage and hour class action settlement include all current and former JCP Logistics employees who were classified as non-exempt employees and who worked at any JCP Logistics locations in the state of California since Oct. 29, 2009.

Under the terms of the proposed JCP Logistics class action settlement, approximately 732 Class Members would be eligible for cash benefits. Class Members do not have to file a claim to receive the cash benefits.

The amount each Class Member will receive from the proposed JCP Logistics class action settlement will depend on which Classes and subclasses they belong to, as well as the number of workweeks worked during the Class Period.

The following Classes and Subclasses were certified by the court in June 2015:

• Bonus Overtime Class
• Variable Amount Production Bonus Subclass
• Flat Amount Retention Bonus Subclass
• Wage Statement Class
• Final Paycheck Class

Notice of this proposed JCP Logistics class action settlement was distributed to 750 Class Members. Of this group, 18 Class Members submitted valid requests for exclusion.

More information about the JCP Logistics class action settlement was not immediately available. Keep checking TopClassActions.com or sign up for our free newsletter for the latest updates. You can also mark this article as a “Favorite” using your free Top Class Actions account to receive notifications when this article is updated.

The plaintiffs are represented by Gregg A. Farley of the Law Offices of Gregg A. Farley and Sahag Majarian II of Sahag Majarian II Law Offices.

The JCP Logistics Unpaid Overtime Class Action Lawsuit is Alejandro C. Sequiera Ruiz v. JCP Logistics Inc., et al., Case No. 8:13-cv-01908, in the U.S. District Court for the Central District of California.

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