Portfolio Recovery Associates wage-and-hour $850K class action settlement

Portfolio Recovery Associates LLC has established an $850,000 settlement fund to resolve a class action lawsuit that made claims the company violated overtime and other labor regulations concerning employee compensation. 

The class is made up of all non-exempt hourly employees who worked for Portfolio Recovery Associates LLC in California from Feb. 16, 2017, through Aug. 26, 2022.

Certain “Eligible Aggrieved Employees” — non-exempt hourly employees who worked for the defendant in California from Dec. 11, 2019, through Aug. 26, 2022 — are also eligible to collect a payment from a portion of civil penalties Portfolio Recovery Associates will pay under the California Private Attorneys General Act, or PAGA. 

Individuals who took legal action separately as named plaintiffs are excluded from the class.

In 2021, plaintiffs filed a complaint in San Diego County that Portfolio Recovery Associates had violated the labor code in California. 

Plaintiffs Jasfer Nepomuceno and Danielle Winkle alleged that Portfolio Recovery Associates violated regulations relating to unpaid overtime, unpaid meal period premiums, unpaid rest period premiums, unpaid minimum wages and final wages not paid in a timely fashion. 

Portfolio Recovery Associates was started in 1996 as a means to help people resolve their debts, according to the company’s website. The company purchases debts from banks, credit card companies and other creditors who are unable to collect debts. Portfolio Recovery Associates claims to have helped millions of people in the United States resolve their debt.

The defendant denies liability or wrongdoing but agreed to the settlement due to “the expense and length” of legal defense and the uncertainty of a jury outcome.

The settlement fund will be proportionately distributed among all class members who have not opted out. 

The payment amount will depend on the number of weeks the class member worked. The amount will be equal to the “number of weeks he or she worked in an hourly or non-exempt capacity” based on the class data, “divided by the total number of weeks worked by all participating class members. …. Which is then multiplied by the net settlement amount.” The settlement states “one day worked in a given week will be credited as a week for purposes of the calculation.”

“Eligible Aggrieved Employees” will also receive a portion of $12,500 in civil penalties collected on behalf of California under PAGA. This payment amount will be based on the number of weeks worked.

Those who wish to opt out and remove themselves from the class will not receive an individual settlement payment, but will still receive a portion of the PAGA settlement. Those within the class may also file a legal objection to the proposed settlement. 

The deadline to submit an exclusion request or file an objection is Nov. 28, 2022. 

The Court will hold a final approval hearing in the Portfolio Recovery Associates settlement Dec. 29, 2022.

If class members do nothing, they will automatically receive an individual settlement payment.

Who’s Eligible

All non-exempt hourly employees who worked for Portfolio Recovery Associates LLC in California from Feb. 16, 2017, through Aug. 26, 2022.

Certain “Eligible Aggrieved Employees” — non-exempt hourly employees who worked for the defendant in California from Dec. 11, 2019, through Aug. 26, 2022 — are also eligible to collect a payment from a portion of civil penalties Portfolio Recovery Associates will pay under the California Private Attorneys General Act, or PAGA.

Potential Award

Varies

Proof of Purchase

No proof of purchase applicable

Exclusion Deadline

11/28/2022

Case Name

Jasfer Nepomuceno, et al. v. Portfolio Recovery Associates LLC, Case No. 37-2021-00006651-CU-OE-CTL, in the San Diego County Superior Court

Final Hearing

12/29/2022

Settlement Website

CPTGroupCaseInfo.com/PortfolioRecoverySettlement

Claims Administrator

Nepomuceno et al. v. Portfolio Recovery Associates LLC
c/o CPT Group Inc
50 Corporate Park
Irvine, CA 92606

Class Counsel

Douglas Han
Shunt Tatavos-Gharajeh
Phillip Song
Lizette Rodriguez
JUSTICE LAW CORPORATION

Defense Counsel

Sabrina A Beldner
MCGUIREWOODS LLP