ELA Foods $350,000 Settlement for Wage and Hour Violations

ELA Foods, Inc. has agreed to pay $350,000 to settle a class action lawsuit for alleged wage and hour violations. This settlement aims to compensate current and former non-exempt, hourly employees for unpaid wages and penalties. The lawsuit, initiated by a former employee, Antoinette Brown, claims that ELA Foods, Inc. and POP Foods Services, Inc. failed to pay minimum wages, overtime, reimbursements for business expenses, and all wages due upon separation of employment. Additionally, the lawsuit alleges that the companies failed to provide meal and rest periods and accurate wage statements.

Can I Claim an Award?

Class Members include:

• All current and former non-exempt, hourly employees who worked during the Class Period.
• All current and former non-exempt, hourly employees who worked during the PAGA Period.

If you worked for ELA Foods, Inc. or POP Foods Services, Inc. as a non-exempt, hourly employee during the Class Period (September 7, 2020, to January 31, 2024, or until the total number of workweeks reaches 25,786, whichever is sooner), you may be eligible to claim an award. Additionally, if you worked during the PAGA Period (August 13, 2021, to January 31, 2024, or until the total number of workweeks reaches 25,786, whichever is sooner), you may also be eligible for penalties under the California Private Attorney General Act (PAGA).

What Awards Can Class Members Claim?

The settlement includes two main parts: Individual Class Payments and Individual PAGA Payments. The exact amount you may receive depends on the number of workweeks you worked during the Class Period and the number of pay periods you worked during the PAGA Period.

Individual Class Payments are calculated by dividing the Net Settlement Amount by the total number of workweeks worked by all Participating Class Members, then multiplying the result by the number of workweeks worked by each individual Participating Class Member.

Individual PAGA Payments are calculated by dividing $10,000 by the total number of PAGA Pay Periods worked by all Aggrieved Employees, then multiplying the result by the number of pay periods worked by each individual Aggrieved Employee.

Breakdown of Awards:

• Individual Class Payments:
• Calculation: (Net Settlement Amount / Total Workweeks) x Individual Workweeks
• Example: If the Net Settlement Amount is $200,000 and the total workweeks are 10,000, then the payment per workweek is $20. If you worked 50 workweeks, your payment would be $1,000.

• Individual PAGA Payments:
• Calculation: ($10,000 / Total PAGA Pay Periods) x Individual Pay Periods
• Example: If the total PAGA pay periods are 500, then the payment per pay period is $20. If you worked 10 pay periods, your payment would be $200.

Is Proof Required to Claim the Reward?

Yes, proof is required. You must provide documentation such as pay stubs or other records to support your claim if you believe the number of workweeks or pay periods credited to you is incorrect.

How to Claim Your Award

To claim your award, you can file a claim online or by mail. Visit the official settlement website to file a claim online. If you prefer to file by mail, send your completed claim form to the Administrator's address provided below.

Ensure that you submit your claim by the deadline to be eligible for your award.

How do I Get Paid?

Payments will be sent via check to the address provided in your claim form. Make sure your address is up-to-date to avoid any delays in receiving your payment.

$350,000 Settlement Fund Breakdown

The total settlement amount is $350,000. This amount will be distributed as follows:

• Up to $116,666.67 for attorney's fees.
• Up to $20,000 for litigation expenses.
• Up to $20,000 for the Administrator's expenses.
• Up to $10,000 for PAGA penalties.

The remaining amount will be distributed among the Participating Class Members and Aggrieved Employees based on their workweeks and pay periods.

Important Dates

• Deadline to File a Claim: July 8, 2024
• Final Approval Hearing: August 28, 2024

Why is There a Class Action Settlement?

The class action lawsuit was filed by a former employee who alleged that ELA Foods, Inc. and POP Foods Services, Inc. violated California labor laws by failing to pay minimum wages, overtime, reimbursements for business expenses, and all wages due upon separation of employment. The lawsuit also claimed that the companies failed to provide meal and rest periods and accurate wage statements.

The lawsuit focuses on wage and hour violations, specifically:

• Failure to pay minimum wages and liquidated damages
• Failure to pay overtime
• Failure to provide meal periods
• Failure to provide rest periods
• Failure to reimburse business expenses
• Failure to provide accurate wage statements
• Failure to pay all wages due upon separation of employment

The settlement is a compromise to resolve these disputed claims without continuing the expensive and time-consuming litigation process. Both parties agreed to the settlement to avoid further legal costs and uncertainties.

Next Steps

The Court has already preliminarily approved the proposed Settlement and approved the issuance of the Notice. The Court has not yet decided whether to grant final approval of the Settlement. At the Final Approval Hearing, the Court will decide whether to finally approve the Settlement and how much of the Settlement will be paid to Plaintiff and Plaintiff’s attorneys (“Class Counsel”). The Court will also decide whether to enter a judgment that requires Defendants to make payments under the Settlement and requires Class Members and Aggrieved Employees to give up their rights to assert certain claims against Defendants.