Frequently Asked Questions

1. What is the Action about?

Plaintiff is a former employee of Defendant. The Action alleges Defendant violated California labor laws by failing to pay wages, wages due upon termination, sick time, wages without discount due to fees allegedly incurred due to the use of pay cards, and reimbursable expenses, and failing to provide meal periods, rest breaks, and accurate itemized wage statements and to maintain accurate records. Plaintiff is represented by attorneys in the Action: Shaun Setareh, Farrah Grant, and Thomas Segal of the law firm Setareh Law Group (Class Counsel).

Defendant strongly denies violating any laws or failing to pay any wages and contends it complied with all applicable laws.

2. What does it mean that the Action has settled?

The Court has made no determination whether Defendant or Plaintiff is correct on the merits. Plaintiff and Defendant hired an experienced, neutral mediator in an effort to resolve the Action by negotiating an to end the case by agreement (settle the case) rather than continuing the expensive and time-consuming process of litigation. The negotiations were successful. By signing a lengthy written settlement agreement (Agreement) and agreeing to ask the Court to enter a judgment ending the Action and enforcing the Agreement, Plaintiff and Defendant have negotiated a proposed Settlement that is subject to the Court’s Final Approval. Both sides agree the proposed Settlement is a compromise of disputed claims. By agreeing to settle, Defendant does not admit any violations or concede the merit of any claims.

Plaintiff and Class Counsel strongly believe the Settlement is a good deal for you because they believe that: (1) Defendant has agreed to pay a fair, reasonable and adequate amount considering the strength of the claims and the risks and uncertainties of continued litigation; and (2) Settlement is in the best interests of the Class Members. The Court preliminarily approved the proposed Settlement as fair, reasonable and adequate, authorized the Notice, and scheduled a hearing to determine Final Approval.

3. What are the important terms of the proposed Settlement?

Defendant Will Pay $6,500,500 as the Gross Settlement Amount (Gross Settlement). Defendant has agreed to deposit the Gross Settlement into an account controlled by the Settlement Administrator of the Settlement. The Settlement Administrator will use the Gross Settlement to pay the individual Class Settlement Awards, Service Award, Class Counsel’s attorney’s fees and expenses, penalties to be paid to the California Labor and Workforce Development Agency (LWDA), and the Settlement Administrator’s expenses. Assuming the Court grants Final Approval, Defendant will fund the Gross Settlement not more than 15 business days after the Judgment entered by the Court become final. The Judgment will be final on the date the Court enters Judgment, or a later date if Settlement Class Members object to the proposed Settlement or the Judgment is appealed.

Court Approved Deductions from Gross Settlement. At the Final Approval Hearing, Plaintiff and/or Class Counsel will ask the Court to approve the following deductions from the Gross Settlement, the amounts of which will be decided by the Court at the Final Approval Hearing:

1. Up to $2,166,666.66 (33% of the Gross Settlement) to Class Counsel for attorneys’ fees and up to $25,000 for their litigation costs and expenses. To date, Class Counsel have worked and incurred expenses on the Action without payment.
2. Up to $10,000 as a Service Award for filing the Action, working with Class Counsel and representing the Class. A Service Award will be the only monies Plaintiff will receive other than Plaintiff’s individual Class Settlement Award and any individual PAGA Settlement Award.
3. Up to $76,500 to the Settlement Administrator for services administering the Settlement.
4. Up to $200,000 for PAGA Penalties, 75% paid to the LWDA and 25% paid to PAGA Group Members based on their PAGA Pay Periods.

Settlement Class Members have the right to object to any of these deductions. The Court will consider all objections.

Net Settlement Distributed to Settlement Class Members. After making the above deductions in amounts approved by the Court, the Administrator will distribute the rest of the Gross Settlement (the “Net Settlement”) by making individual Class Settlement Awards to Settlement Class Members based on their Class Work Weeks.

Taxes Owed on Payments to Class Members. Plaintiff and Defendant are asking the Court to approve an allocation of 30% of each individual Class Settlement Award to taxable wages (Wage Portion) and 70% to interest, penalties, and non-wage damages (Non-Wage Portion). The Wage Portion is subject to withholdings and will be reported on IRS W-2 Forms. Defendant will separately pay employer payroll taxes it owes on the Wage Portion. The Administrator will report the Non-Wage Portions of the individual Class Settlement Award on IRS 1099 Forms.

Although Plaintiff and Defendant have agreed to these allocations, neither side is giving you any advice on whether your payments are taxable or how much you might owe in taxes. You are responsible for paying all taxes (including penalties and interest on back taxes) on any payments received from the proposed Settlement. You should consult a tax advisor if you have any questions about the tax consequences of the proposed Settlement.

Need to Promptly Cash Payment Checks. The front of every check issued for individual Class Settlement Award will show the date when the check expires (the void date). If you do not cash it by the void date, your check will be automatically cancelled, and the monies will irrevocably lost to you because they will be paid to the Justice Gap Fund (Cy Pres).

Requests for Exclusion from the Class Settlement (Opt-Outs). You will be treated as a Settlement Class Member, participating fully in the Class Settlement, unless you notify the Settlement Administrator in writing, not later than January 25, 2025 (Response Deadline), that you wish to opt-out.

To be excluded you must submit a written Request for Exclusion to the Settlement Administrator within the Notice Response Deadline. The written Request for Exclusion must personally signed by you and contain (1) the full name, address, telephone number and last four digits of the Social Security number of the person requesting to be excluded; (2) the words “Request for Exclusion” at the top of the document; and (3) the following statement:

“I wish to be excluded from the Settlement of this case, Christina Romero v. McDonald’s Restaurants of California, Inc., San Bernardino Superior Court Case No. CIVSB2305280.”

Excluded Class Members will not receive individual Class Settlement Awards but will preserve their rights to personally pursue wage and hour claims against Defendant.

You cannot opt-out of the PAGA portion of the Settlement. Class Members who exclude themselves from the Class Settlement remain eligible for the individual PAGA Settlement Award and are required to give up their right to assert PAGA claims against Defendant based on the facts alleged in the Action.

The Proposed Settlement Will be Void if the Court Denies Final Approval. It is possible the Court will decline to grant Final Approval of the Settlement or decline enter a Judgment. It is also possible the Court will enter a Judgment that is reversed on appeal. Plaintiff and Defendant have agreed that, in either case, the Settlement will be void: Defendant will not pay any money and Class Members will not release any claims against Defendant.

Settlement Administrator. The Court has appointed a neutral company, Simpluris, to send the Notice, calculate and make payments, and process Class Members’ Requests for Exclusion. The Settlement Administrator will also decide Class Member disputes over Class Work Weeks, mail and re-mail settlement checks and tax forms, and perform other tasks necessary to administer the Settlement. The Settlement Administrator’s contact information is contained in Section 9 of the Notice.

Settlement Class Members’ Release. After the Judgment is final and Defendant has fully funded the Gross Settlement and separately paid all employer payroll taxes, Settlement Class Members will be legally barred from asserting any of the claims released under the Settlement. This means that unless you opted out by validly excluding yourself from the Settlement, you cannot sue, continue to sue, or be part of any other lawsuit against Defendant or related entities for wages based on the Class Period facts, as alleged in the Action and resolved by this Settlement, and will be deemed to have released, waived and discharged all Released Claims against all Released Parties.

“Released Claims” means that Settlement Class Members on behalf of themselves and their respective former and present representatives, agents, attorneys, heirs, administrators, successors, and assigns release Released Parties of all claims, debts, liabilities, demands, obligations, damages, and actions or causes of action of any kind arising before or during the Class Period and that were alleged in the Complaint, Amended Complaint, or the PAGA Notices or could have been alleged against any of the Released Parties based on the facts alleged in the Complaint, Amended Complaint, or PAGA Notices or based on any facts discovered in the course of the litigation and including claims under California Labor Code sections 201, 202, 203, 204, 212, 215, 216, 218.6, 223, 225, 226, 226.3, 226.6, 226.7, 245 et seq., 256, 510, 512, 553, 558, 1174, 1174.5, 1175, 1194, 1194.2, 1197, 1197.1, 1198, 1199, 2698 et seq. (PAGA), and 2802; the Industrial Welfare Commission (“IWC”) Wage Orders, including IWC Wage Order No. 5-2001; Business and Professions Code section 17200 et seq; and Code of Civil Procedure sections 382 and 1021.5. For the avoidance of doubt, expressly excluded from the Released Claims are claims under the Fair Employment and Housing Act and related common law cases, in Workers’ Compensation and Unemployment Insurance benefit cases and claims for benefits under the Employee Retirement Income Security Act of 1974 (ERISA).

PAGA Group Members’ PAGA Release. After the Court’s judgment is final, and Defendant has paid the Gross Settlement (and separately paid the employer-side payroll taxes), all PAGA Group Members will be barred from asserting PAGA claims against Defendant, whether or not they exclude themselves from the Settlement. This means that all PAGA Group Members, including those who are Settlement Class Members and those who opt-out of the Class Settlement, cannot sue, continue to sue, or participate in any other PAGA claim against Defendant or its related entities based on the PAGA Period facts alleged in the Action and resolved by this Settlement.

4. How will the Settlement Administrator calculate my payment?

Individual Class Settlement Awards. The Settlement Administrator will calculate individual Class Settlement Awards by (a) dividing the Net Settlement Sum by the total number of work weeks worked by all Settlement Class Members, and (b) multiplying the result by the number of individual Class Work Weeks worked by each Settlement Class Member.

Individual PAGA Settlement Awards. The Settlement Administrator will calculate individual PAGA Settlement Awards by (a) dividing PAGA Fund by the total number of PAGA Pay Periods worked by all PAGA Group Members and (b) multiplying the result by the number of PAGA Pay Periods worked by each individual PAGA Group Member.

Work Week Challenges. The number of Class Work Weeks you worked during the Class Period, as recorded in Defendant’s records, are stated in the first page of the Notice and in the accompanying Notice of Eligible Work Weeks. You have until January 25, 2025, to challenge you Class Work Weeks. To challenge you Class Work Weeks you must complete, sign, and send the Notice of Eligible Work Weeks to the Settlement Administrator via mail, email or fax. FAQ 9 has the Settlement Administrator’s contact information.

You need to support your challenge by sending copies of pay stubs or other records. The Settlement Administrator will accept Defendant’s calculation of Work Weeks based on Defendant’s records as accurate unless you send copies of records containing contrary information. You should send copies rather than originals because the documents will not be returned to you. The Settlement Administrator will resolve workweek challenges based on your submission. The Settlement Administrator’s decision is final. You cannot appeal or otherwise challenge its final decision.

5. How will I get paid?

Settlement Class Members. The Settlement Administrator will send, by U.S. mail, a single check to every Settlement Class Member (i.e., every Class Member who does not opt-out), including those who qualify as PAGA Group Members. The single check will combine the individual Class Settlement Award and the individual PAGA Settlement Award. Class Members who opt-out of the Class Settlement Award will still receive their individual PAGA Settlement Award.

Your check will be sent to the same address as listed on your Notice. If you change your address, be sure to notify the Settlement Administrator as soon as possible.

6. How do I opt-out the Class Settlement?

Submit a written and personally signed letter with (1) the full name, address, telephone number and last four digits of the Social Security number of the person requesting to be excluded; (2) the words “Request for Exclusion” at the top of the document; and (3) the following statement:

“I wish to be excluded from the Settlement of this case,Christina Romero v. McDonald’s Restaurants of California, Inc., San Bernardino Superior Court Case No. CIVSB2305280.”

You must make the request yourself. If someone else makes the request for you, it will not be valid. The Settlement Administrator must be sent your request to be excluded by January 25, 2025, or it will be invalid.

7. How do I object to the Settlement?

Only Settlement Class Members have the right to object to the Settlement. Before deciding whether to object, you may wish to see what Plaintiff and Defendant are asking the Court to approve. By February 19, 2025, Class Counsel and/or Plaintiff will file in Court (1) a Motion for Final Approval that includes, among other things, the reasons why the proposed Settlement is fair, and (2) a Motion for Fees, Litigation Expenses and Service Award stating (i) the amount Class Counsel is requesting for attorneys’ fees and litigation expenses; and (ii) the amount Plaintiff is requesting as a Service Award. Upon reasonable request, Class Counsel (whose contact information is in FAQ 9 ) will send you copies of these documents at no cost to you. You can also view them here or the Court’s website.

A Settlement Class Member who disagrees with any aspect of the Agreement, the Motion for Final Approval and/or Motion for Fees, Litigation Expenses and Service Award may wish to object, for example, that the proposed Settlement is unfair, or that the amounts requested by Class Counsel or Plaintiff are too high or too low. The deadline for sending written objections to the Settlement Administrator is January 25, 2025. Be sure to tell the Settlement Administrator what you object to, why you object, and any facts that support your objection. Make sure you identify the Action, Christina Romero v. McDonald’s Restaurants of California, Inc., Case No. CIVSB2305280, and include your name, current address, telephone number, approximate dates of employment for Defendant, and a written statement of whether you intend to appear at the Final Approval Hearing and sign the objection. FAQ 9 has the Settlement Administrator’s contact information.

Alternatively, a Settlement Class Member can object (or personally retain a lawyer to object at your own cost) by attending the Final Approval Hearing. You (or your attorney) should be ready to tell the Court what you object to, why you object, and any facts that support your objection. See FAQ 8 for specifics regarding the Final Approval Hearing.

8. Can I attend the Final Approval Hearing?

You can, but do not have to, attend the Final Approval Hearing on March 13, 2025, at 1:30 p.m. in Department S-17 of the San Bernardino Superior Court, located at 247 West Third Street, San Bernardino, CA 92415. At the Hearing, the judge will decide whether to grant Final Approval of the Settlement and how much of the Gross Settlement will be paid to Class Counsel, Plaintiff, and the Settlement Administrator. The Court will invite comment from objectors, Class Counsel and Defense Counsel before making a decision. You can attend (or hire a lawyer to attend) either personally or virtually (Remote Access | Superior Court of California (sb-court.org). Check the Court’s website for the most current information.

It is possible the Court will reschedule the Final Approval Hearing. You should check this website beforehand or contact Class Counsel to verify the date and time of the Final Approval Hearing.

9. How can I get more information?

The Agreement sets forth everything Defendant and Plaintiff have promised to do under the proposed Settlement. The easiest way to read the Agreement, the Judgment or any other Settlement documents is to view them here. You can also telephone or send an email to Class Counsel or the Settlement Administrator using the contact information listed below or consult the Superior Court website and entering the Case Number for the Action, Case No. CIVSB2305280.

DO NOT TELEPHONE THE SUPERIOR COURT TO OBTAIN INFORMATION ABOUT THE SETTLEMENT.

10. What if I lose my settlement check?

If you lose or misplace your settlement check before cashing it, the Settlement Administrator will replace it as long as you request a replacement before the void date on the face of the original check. If your check is already void you will have no way to recover the money.

11. What if I change my address?

To receive your check, you should immediately notify the Settlement Administrator if you move or otherwise change your mailing address.