Jackson Hewitt employees settle class action for $10.8M

If you worked as a tax preparer at a company-owned Jackson Hewitt location in the United States between December 20, 2014, and July 3, 2024, you may be eligible to claim a portion of a $10,800,000 from a class action settlement.

Jackson Hewitt Inc. and Tax Services of America, Inc. have agreed to settle a class action lawsuit for allegedly engaging in 'no-poach agreements' that restrained trade and commerce.

Who are the class members?

Those who:

• Worked in a tax preparer position at any company-owned Jackson Hewitt location in the United States.
• Employment occurred between December 20, 2014, and July 3, 2024.

Excluded from the Settlement Class are:

• Senior executives and personnel in Jackson Hewitt’s executive, HR, and recruiting departments.
• Persons outside of the United States, franchisee owners, and managers.

How much can class members get?

The settlement fund will be distributed among class members based on their regular earnings for hours worked as a tax preparer during the class period.

The exact amount each class member will receive depends on their pro rata share of the settlement fund.

Class members do not need to file a claim to receive compensation. Payments will be automatically distributed based on the information already available to the Settlement Administrator.

$10,800,000 Settlement Fund

The settlement fund of $10,800,000 will cover various expenses and distributions:

• Attorneys’ fees and costs: Up to $3,564,000
• Incentive awards for Class Representatives: $10,000 each
• Remaining funds will be distributed to class members based on their pro rata share

When is the Jackson Hewitt Settlement payout date?

The awards will be paid after the settlement receives final approval and any appeals are resolved. The hearing is on November 22, 2024.

Why is there a class action settlement?

The lawsuit alleges that Jackson Hewitt Inc. and Tax Services of America, Inc. engaged in 'no-poach agreements' that fixed, reduced, and stabilized wages at artificially low levels, violating antitrust laws. The settlement was reached to avoid the costs and risks of continuing the lawsuit.

What happens next?

The next steps include the Fairness Hearing on October 11, 2024, where the court will decide whether to approve the settlement. If approved, payments will be distributed to class members.