$5.45 Million Settlement to Resolve Claims of Broken California Work Laws

An arena concessions vendor accused of violating California work laws has reached a class action settlement with thousands of employees.

Centerplate of Delaware Inc. denies the allegations and admits no liability, but has asked a California federal judge to approve a $5.45 million wage and hour class action settlement that was agreed upon by all parties with the help of a mediator.

Plaintiffs filed the lawsuit in July 2017, alleging Centerplate failed to provide employees with complete meal breaks, failed to provide sick days, failed to pay for accrued vacation time and failed to pay employees for the time they spent waiting in line at security checkpoints. Employees further alleged that Centerplate violated California work laws by making them pay for their own uniforms while working at an unnamed venue.

Two Classes were sought in the claim, according to Law360. A “Centerplate Class” was to consist of company or staffing agency employees who worked at the anonymous venue within four years of the lawsuit’s filing. A second class was deemed the Unfair Competition Law Class, which was to consist of class members who were employed by Centerplate in California from the date of July 5, 2013 through the time a judgment had been entered in the suit.

Employees will not have to complete claim forms to receive their share of the money from the proposed settlement. Checks will be mailed to the estimated 11,741 class members who will receive a portion of $3.43 million, the amount left to divvy up after court-approved deductions have been subtracted from the $5.45 million.

According to the proposed settlement, the $5.45 million “is an ‘all-in’ nonreversionary amount.” If there are any checks left uncashed, they will be sent to the California Division of Labor Standards Enforcement’s Unclaimed Wages Fund where the money will be held for the class member. Centerplate will not be able to recoup any unclaimed settlement money.

Centerplate was purchased by Sodexo in November 2017, and has since lost contracts with several stadiums around the nation.

Centerplate Challenged California Work Laws Claim

In July 2018, U.S. District Judge Lucy H. Koh refused to dismiss the lawsuit because the claims were not identical to the ones made in a previously settled wage and hour lawsuit called the Thompson settlement.

The Thompson case regarded alleged violations of wage and overtime laws that occurred only during the National Football League season of 2015-2016. The two lead plaintiffs in the new lawsuit were plaintiffs in the Thompson case, but the Thompson case included non-exempt employees who had worked at the 2016 Super Bowl.

Judge Koh said the lawsuits were completely different because the Thompson lawsuit was brought forth by a plaintiff who alleged Centerplate failed to pay him overtime wages and failed to pay him for his travel costs and the time he spent waiting. Also, the Thompson case focused on a shorter, specific period of time.

The California Work Laws Lawsuit is Case No. 5:17-cv-03828, in the U.S. District Court for the Northern District of California.

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