Jamba Juice to Settle Class Action Under Overtime Law in California

Jamba Juice has agreed to pay nearly $2 million to settle claims that they violated overtime law in California by requiring off the clock work.

Los Angeles Superior Court Judge Carolyn B. Kuhl recently granted final approval to the proposed $1.95 million settlement, but she also reduced the service payments to the class action’s named plaintiffs.

The settlement was put up for preliminary approval in June 2018 when the plaintiffs laid out the initial details of the settlement. Under the proposed settlement, around 5,000 shift leaders and managers would receive an average of $212. The settlement accounted for $649,350 in attorneys’ fees.

Class counsel had proposed $25,000 service awards each for plaintiffs Rosa A. and Jessica G. based on the amount of time and work they put into helping with the case. Their attorney even stated that the two mothers were always willing to help even though they had other commitments.

However, Judge Kuhl found that $25,000 each was “out of line” and “out of the ordinary” when compared to similar settlements. The typical service awards for these settlements reportedly reach only $5,000 to $10,000 per plaintiff. Kuhl noted that even though the two women had reportedly invested time into case preparation, they did not attend mediation. This typically prompts her to reduce service awards for plaintiffs.

Instead of the proposed $25,000 service award per plaintiff, each woman was awarded $10,000. Although this is less than half of the proposed amount, class counsel praised the judge for her decision and noted that the case was very difficult.

“She gave us the highest range that she gives in these kinds of cases,” one attorney told Law360.

The Jamba Juice class action lawsuit was filed by Rosa and Jessica in 2014 alleging violations of overtime law in California. The two claimed that Jamba Juice forced shift leaders and managers in California to stay on duty even while punched out for meal breaks.

“Those meal periods were not waived by mutual consent of the defendants and plaintiffs. Defendants required plaintiffs to ‘clock out’ for meal periods and keep working ‘off the clock’,” the Jamba Juice class action lawsuit claimed. “There is no applicable exemption that would permit defendants to fail or to refuse to provide plaintiffs with the required meal periods.”

Rosa and Jessica argued that forcing their employees to work during meal breaks was a violation of labor laws in California. Overtime law in California states that “unless the employee is relieved of all duty during his or her thirty minute meal period, the meal period shall be considered an ’on duty’ meal period that is counted as hours worked which must be compensated at the employee’s regular rate of pay.”

Although employees were reportedly forced to work while on meal breaks, this work was allegedly not counted when calculating wages. Rosa and Jessica claimed that Jamba Juice owed them and other workers unpaid wages and, in some cases, overtime for this off the clock work.

The California Overtime Class Action Lawsuit is Case No. BC564304 in the Superior Court of California, County of Los Angeles.

Join a Free California Wage & Hour Class Action Lawsuit Investigation

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

Get a Free Case Evaluation Now