Restoration Hardware Settles California Labor Lawsuit for $6M

If you were a driver and/or helper who was cleared to deliver Restoration Hardware, Inc. (RH) merchandise on behalf of a Third-Party Logistics Provider in California at any time between August 8, 2020, and June 12, 2024, you may be eligible to claim a monetary award from a class action settlement.

Restoration Hardware, Inc. has agreed to pay $6,000,000 to settle a class action lawsuit for alleged violations of various California labor laws, including failure to pay minimum wages, overtime wages, provide meal and rest breaks, and other related claims.

Can I Claim an Award?

To be eligible for an award, you must have been a driver or helper cleared to deliver RH merchandise on behalf of a Third-Party Logistics Provider in California during the Class Period, which spans from August 8, 2020, to June 12, 2024. Class Members include those who were classified as independent contractors but allege they should have been classified as employees.

The lawsuit claims that RH misclassified drivers and helpers as independent contractors, which led to various labor law violations. If you fall into this category, you are considered a Class Member and may be eligible for a monetary award from the settlement.

• Drivers: Those who were cleared to work as drivers delivering RH merchandise.
• Helpers: Those who were cleared to work as helpers or third-men delivering RH merchandise.

What Awards Can Class Members Claim?

Class Members who do not opt out of the settlement will receive a pro-rata share of the Net Settlement Sum, which is approximately $3,490,325.46 after deductions for attorneys' fees, service payments, PAGA settlement, and administration costs.

The awards are calculated based on the number of workweeks each Class Member worked during the Class Period:

• Drivers: The Drivers Class Fund, which is approximately 50% of the Net Settlement Sum, will be divided by the total number of Drivers Workweeks to determine the Workweek Value for Drivers. Each driver's award will be calculated by multiplying their total number of Drivers Workweeks by this value.
• Helpers: The Helpers Class Fund, which is approximately 50% of the Net Settlement Sum, will be divided equally among all helpers.

Is Proof Required to Claim the Reward?

Not applicable. The Settlement Administrator already has the necessary information to determine eligibility and calculate awards.

How to Claim Your Award

To claim your award, you do not need to take any action if you are already identified as a Class Member. However, if you need to update your address or dispute the number of workweeks, you should contact the Settlement Administrator.

How do I Get Paid?

Payments will be distributed via check to the address on file with the Settlement Administrator. Ensure your address is up-to-date to avoid delays.

$6,000,000 Settlement Fund

The total settlement amount is $6,000,000, which includes:

• Up to $2,100,000 in attorneys' fees.
• Up to $50,000 in litigation costs and expenses.
• Service payments of up to $5,000 each to the Plaintiffs, totaling $10,000.
• $180,000 for PAGA claims, with $135,000 going to the LWDA and $45,000 to PAGA Group Members.
• Settlement administration costs not to exceed $24,623.00.

Important Dates

• Opt-Out Deadline: September 23, 2024
• Deadline to Dispute Number of Workweeks: September 23, 2024
• Final Approval Hearing: October 15, 2024

When is the Payout?

Awards will be paid after the Final Approval Hearing and once all administrative tasks are completed.

Why is there a Class Action Settlement?

The class action settlement aims to resolve claims that RH misclassified drivers and helpers as independent contractors, leading to various labor law violations. By settling, RH does not admit liability but agrees to compensate affected individuals.

What Happens Next?

The next steps include the Final Approval Hearing on October 15, 2024, after which the settlement will be finalized, and awards will be distributed to eligible Class Members.