Douglas J. Holdings $2,800,000 Settlement

A settlement has been reached in the case of Eberline et al. v. Douglas J. Holdings, Inc. et al. The lawsuit alleged that they and other students were employees for purposes of the Fair Labor Standards Act (FLSA) and state wage-and-hour laws when they performed specific tasks during their time enrolled as students in Douglas J.'s student clinic.

The $2,800,000 Settlement

The Settlement Agreement, which has been preliminarily approved by the Court, provides for a Settlement Amount of $2,800,000. This settlement is expected to compensate the class members who were enrolled in Douglas J.'s cosmetology programs in Michigan and participated in specific courses between 2012 and 2022.

The Settlement Administrator, Kroll Settlement Administration LLC, will determine each Participating Class Member's award based on Qualifying Hours and Qualifying Time. This will be verified through the information provided on the Claim Forms and Douglas J.'s records.

Important Dates

• Deadline to File a Claim: November 24, 2023
• Final Approval Date: December 19, 2023
• Fairness Hearing: December 19, 2023
  

Who Are the Class Members?

The class members in this case are students who attended Douglas J.'s cosmetology programs in Michigan and participated in the Alpha, Beta, Gamma, and/or Salon Life courses from 2012 to 2022. These students are believed to have been employed by Douglas J. during their enrollment and are therefore entitled to compensation under the Fair Labor Standards Act (FLSA) and state wage-and-hour laws.

However, it's important to note that Qualifying Time for Participating Class Members will be capped at no more than 10% of their Qualifying Enrollment. This means that the amount of compensation each class member will receive will be based on a specific calculation of their enrollment and participation in the courses.

What Can Class Members Claim?

Class Members who submit a valid Claim Form will be paid based on Qualifying Hours and Qualifying Time. The amount of the award will depend on the Hourly Rate, Qualifying Time, and the Interest Rate. Payments will be made from the net Settlement Amount, which is the amount remaining after subtracting the amounts to be paid for Settlement Administration Costs, Class Counsel's fees and expenses, and Service Awards to the Plaintiffs.

The Settlement Administrator will determine each Participating Class Member's Qualifying Hours and Qualifying Time based on information provided on the Claim Forms and verified in Douglas J's records.

Is Proof Required to Claim the Reward?

Yes, proof is required to claim the reward. Class Members will need to provide information on the Claim Form, and the Settlement Administrator will verify the information in Douglas J's records. To submit the claim form, you will need to enter your Class Member ID, which you would have received in the mail from the settlement administrator.

Why Is There a Class Action Settlement?

The class action settlement has been reached to resolve the lawsuit filed by Plaintiffs Joy Eberline, Cindy Zimmermann, and Tracy Poxson on behalf of themselves and other similarly situated students. The lawsuit alleged that the students were employees for purposes of the Fair Labor Standards Act (FLSA) and state wage-and-hour laws when they performed specific tasks during their time enrolled as students in Douglas J.'s student clinic. The Defendants deny these allegations.

The Final Fairness and Approval Hearing is scheduled for December 19, 2023, where the Court will consider whether to finally approve the Settlement as fair, reasonable, and adequate. Class Counsel will also seek approval for their fees and expenses, as well as Service Awards to the Plaintiffs who brought the lawsuit.