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If you are a current or former Washington-based employee of RACOM Corporation who entered into a noncompetition covenant between April 16, 2021, and January 6, 2025, and whose annual earnings were below the specified threshold, you may qualify to claim $3,500 from a class action settlement.
RACOM Corporation has agreed to pay $197,333 to settle a class action lawsuit for allegedly pressuring employees to sign void and unenforceable noncompetition agreements in violation of Washington state law [1].
Who can file for a RACOM settlement payout?
You qualify as a class member if:
- You are a current or former employee of RACOM Corporation in Washington state
- Your annual earnings were less than $101,390 in 2021, $107,301.04 in 2022, $116,593.18 in 2023, and/or $120,559.99 in 2024
- You entered into a noncompetition covenant with RACOM Corporation between April 16, 2021, and January 6, 2025
How much is the payment for approved claims?
Eligible class members who submit a valid claim form are entitled to receive a payment of $3,500. This amount will be reported as non-wage damages for tax purposes [1].
Is additional documentation required to receive a RACOM employee payout?
- Unique ID and PIN provided on notice
- No, Claimants do not need to provide additional proof, as the Settlement Administrator already has the necessary information to verify eligibility [1].
How to claim a settlement payment
To claim a RACOM payment, you must complete and submit the claim form by the April 4, 2025 deadline. Class members can file a claim online or mail the paper claim form included with the notice you received to the Settlement Administrator [1].
Settlement Administrator's mailing address: Taylor v Racom Corporation, P.O. Box 26170, Santa Ana, CA 92799
$197,333 Settlement fund breakdown
The settlement fund includes the following:
- Payments to class members of $3,500 per eligible claimant [1]
- Settlement administration costs
- Attorneys' fees and expenses of $44,333
- Service award to the Plaintiff of $10,000
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Important dates
- Deadline to File a Claim: April 4, 2025
- Final Approval Hearing: May 16, 2025 [1]
When is the RACOM Corporation employee settlement payout date?
The next steps involve the court's final approval of the settlement on May 16, 2025. Once approved, payments will be distributed to approved claimants [1].
Why is there a class action settlement?
The lawsuit was initiated because RACOM Corporation allegedly violated Washington law by entering into noncompetition agreements with employees earning below the legal threshold. The settlement allows both parties to avoid the expenses of prolonged litigation while providing compensation to impacted employees [1].
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