California CVS Employee Bag Check Class Action Settlement

Preliminary approval has been given to a $12.75 million settlement in a class action lawsuit involving claims that CVS Caremark shorted roughly 78,000 workers on pay for time they spent in mandatory bag checks in violation of California labor law.

Plaintiff Kimberly Murphy filed the complaint in July 2011 on behalf of a proposed Class of nonexempt CVS employees. It alleged they were subject to required bag checks anytime they had to leave the store for a rest break, meal break or at the end of a shift but were not compensated for this time.

Specifically, Murphy alleged that since 2007, CVS has had a policy of not compensating hourly employees in California for time spent waiting for and undergoing security inspections after clocking out but before they leave the store.

If granted final approval, the CVS bag check settlement would resolve the claims brought under the California Labor Code that CVS failed to pay overtime, compensate for all hours worked, pay wages due upon discharge or provide required meal or rest breaks to workers due to the mandatory bag check inspections.

Under the terms of the settlement, CVS will pay a total amount of $12.75 million. Of this amount, $50,000 will be paid to the State of California Labor and Workforce Development Agency.

In consideration for their roles in bringing the employee class action lawsuit, Murphy and two other named lead plaintiffs will receive $5,000 each, deducted from the gross settlement value.

Class Counsel will seek approval for fees in the amount of $3.82 million and an additional $200,000 for court costs. Claims administration fees will also be paid from the gross settlement fund not to exceed $250,000.

The remaining settlement funds will be distributed to each member of the settlement Class who submits a timely and approved Claim Form.

CVS denies the allegations of plaintiff’s complaint and continues to assert that it has properly paid employees for all hours worked.

Class Members who wish to be excluded from or object to the settlement must do so by Jan. 6, 2017.

Who’s Eligible

Under the terms of the CVS bag check class action settlement, Class Members include all persons who worked at CVS retail store as a hourly nonexempt employee in California at any time during the time period July 5, 2007 through Oct. 3, 2016.

Potential Award

Varies.

Eligible Class Members should have received a Claim Form notice with a preliminary calculation of how much they might receive in money damages if every Class Member submits a valid claims and seeks the full amount of recovery.

It is estimated that Class Members will receive $100 to $200 on average. This estimated amount is likely to increase depending on the number of Class Members who file claims.

Proof of Purchase

N/A

Claim Form

Claim Form notices were sent to eligible Class Members. If you are a Class Member who did not receive a Claim Form, you should contact the settlement administrator.

Claim Form Deadline

1/23/2017

Case Name

Kimberly Murphy v. Caremark CVS Corp., et al., Case No. BC464785, in the Superior Court of the State of California, County of Los Angeles

Final Hearing

2/14/2017

Settlement Website

www.CVSBagCheckSettlement.com

Claims Administrator

CAC Services Group
1601 Southcross Dr W
Burnsville, MN 55306
800-556-4071

Class Counsel

Randy Renick
Cornelia Dai
HADSELL STORMER & RENICK LLP

Robert Newman
ROBERT D. NEWMAN, ATTORNEY AT LAW

Randall B. Aiman-Smith
AIMAN-SMITH & MARCY

Defense Counsel

Douglas R. Hart
Jennifer B. Zargarof
SIDLEY AUSTIN LLP

Join a Free California Overtime, Wage & Hour Class Action Lawsuit Investigation

If you were forced to work off the clock or without overtime pay in California within the past 2 to 3 years, you have rights – and you don’t have to take on the company alone.

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