MasterCorp, Inc. has agreed to pay $4,950,000 to settle a class action lawsuit for alleged wrongful labor practices and immigration-related wrongful conduct. This settlement provides an opportunity for eligible Colombian housekeepers to claim a portion of the settlement amount.
Can I Claim an Award?
To be eligible for an award, you must meet specific criteria:
- Nationality: You must be a Colombian National or of Colombian origin.
- Employment: You must have been paid by Perennial Pete, LLC or one of its affiliated entities or companies. The affiliated entities include:
- SM Cleaning Solutions Inc.
- WD Cleaning Solutions Inc.
- DM Cleaning Solutions Inc.
- JM Cleaning Solutions Inc.
- EV Cleaning Solutions Inc.
- EM Cleaning Services and Solutions Inc.
- SD Cleaning Services and Solutions Inc.
- Service Period: You must have provided housekeeping services at resorts in the United States where MasterCorp was responsible for housekeeping between March 19, 2021, and May 15, 2024.
If you meet these criteria, you are considered a Settlement Class Member and are eligible to claim an award from the settlement fund.
What Awards Can Class Members Claim?
The settlement provides a total of $4,950,000 to be distributed among eligible Settlement Class Members. After deducting attorneys’ fees, service awards, settlement administration costs, and any applicable taxes, the remaining funds will be divided equally among those who submit valid and timely claims.
For example, if there are 205 Settlement Class Members and all of them file a claim, each member will receive 1/205 of the Net Settlement Amount. If fewer members file claims, the payment per member will increase proportionally. However, the maximum payment any member can receive is capped at 5/205 of the Net Settlement Amount.
In other words, between 0.49% and 2.44% of the Net Settlement Amount.
Detailed Breakdown
- Attorneys’ Fees: Capped at one-third of the settlement amount plus reasonable costs.
- Service Awards: Each plaintiff may receive a service award of up to $7,500.
- Settlement Administration Costs: Includes costs for settlement administration and notice.
- Remaining Funds: Any leftover funds will be donated to St. Jude for undocumented-immigrant-related services.
Is Proof Required to Claim the Reward?
Yes, proof is required to claim an award. Claimants must submit a valid and timely Claim Form with the following information:
- Dates of employment
- Name of the resorts you worked at with their locations
- Paystub payor name
- Manager name
- Name of the person who hired you
- Home addressed at the time of employment
How to Claim Your Award
To claim your award, you must complete and submit a Claim Form. You can file a claim online or mail a paper Claim Form to the Settlement Administrator. All Claim Forms must be submitted online or postmarked by August 13, 2024.
If you do not submit a valid Claim Form by the deadline, you will not receive a payment but will still be bound by the Court’s judgment.
$4,950,000 Settlement Fund Breakdown
The total settlement amount is $4,950,000. This amount will be used to pay Settlement Class Members, attorneys’ fees, service awards to the plaintiffs, settlement administration costs, and any applicable taxes.
- Attorneys’ Fees: Capped at one-third of the settlement amount plus reasonable costs.
- Service Awards: Each plaintiff may receive a service award of up to $7,500.
- Remaining Funds: Any leftover funds will be donated to St. Jude for undocumented-immigrant-related services.
Important Dates
- Deadline to File a Claim: August 13, 2024
- Fairness Hearing: September 20, 2024
Why is There a Class Action Settlement?
This class action settlement arises from allegations that MasterCorp engaged in wrongful labor practices and immigration-related wrongful conduct. The plaintiffs claimed that MasterCorp failed to pay overtime, engaged in discriminatory practices, and made workers feel vulnerable due to their immigration status.
By agreeing to this settlement, MasterCorp aims to avoid the risks, uncertainty, and expenses associated with ongoing litigation. The settlement is intended to provide fair compensation to affected workers while allowing MasterCorp to move forward without admitting any wrongdoing.
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