Baxalta, Shire to Pay $4.8M to Resolve Unpaid Overtime Claims

Two pharmaceutical companies recently agreed to pay a combined $4.75 million to resolve claims of unpaid overtime and other wage violations.

Plaintiffs in two wage and hour class action lawsuits recently moved for final approval of a nearly $4.8 million settlement with Takeda-owned Baxalta U.S. Inc. and Shire PLC. Baxalta merged with Shire for $32 billion in 2016 before the consolidated company was purchased this year by pharmaceutical company Takeda for €46 billion, around $59 billion in U.S. dollars.

Plaintiff Romeka R. filed a Private Attorney General Act (PAGA) class action lawsuit against Baxalta and Shire in June 2017. The California PAGA allows employees to bring wage violation claims on behalf of the state government, meaning that they pursue state penalties as well as private compensation.

Romeka claimed that she had unpaid overtime while working as a manufacturing technician at Baxalta. Other allegations reportedly included failure to provide minimum wage, rest breaks, accurate wage statements, termination wages, business expense reimbursement, and more.

Plaintiff Elvia M. filed her own wage and hour claim against Baxalta in May 2018, claiming that the company failed to provide her with accurate wage statements.

Both Romeka’s and Elvia’s claims are being resolved with the $4.75 million settlement.

Of the $4.75 million settlement fund, $112,500 will be used to pay the PAGA fee owed to the Labor and Workforce Development Agency. An additional one-third of the settlement fund, or around $1.58 million, will go towards attorneys’ fees and up to $25,000 will cover court costs. Settlement administrative costs will take up an additional $20,000 while each of the two plaintiffs will receive $5,000 incentive awards.

After the deduction of these costs, the net settlement fund will reportedly be distributed amongst 2,488 participating Class Members. Each person will reportedly receive an average payment of $1,200 with the highest payments at $2,130. Class Members are not required to file a claim form in order to receive payment.

Superior Court Judge William F. Highberger granted preliminary approval to the settlement in July 2019. Since then, only two people opted out of the settlement and no Class Members objected, according to the motion for final approval. At the final approval hearing, held on Oct. 22, Judge Highberger reportedly gave his okay to the settlement deal.

Unpaid Overtime in California

Under California labor laws, businesses are required to pay time and a half to employees for all hours worked over 40 hours in a single workweek. This overtime rate is also required for all hours worked between 8 and 12 hours in a single workday and the first eight hours worked on the seventh consecutive day of work in a workweek.

California overtime law also requires payment of “double time,” at double an employees’ regular rate of pay, for all hours worked over 12 hours in a single workday and all hours worked over 8 hours on the seventh consecutive day of work in a workweek.

The Unpaid Overtime Class Action Lawsuits are Case Nos. BC705969 and BC667176, in the Superior Court of the State of California, County of Los Angeles.

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