https://news.bloomberglaw.com/daily-labor-report/mcdonalds-2-million-wage-deal-gets-early-approval-from-judge
McDonald’s $2 Million Wage Deal Gets Early Approval from Judge
A revised $2 million settlement between
However, Magistrate Judge Helena M. Barch-Kuchta voiced concern about the requested attorneys’ fees, which are one-third of the total amount, and the proposed $10,000 service award for lead plaintiff Gennifer Manzo.
The requested fees are higher than those typically awarded in class actions, the court said. The attorneys also failed to articulate if their hourly rates are within the normal range for the Bay Area and Los Angeles, or provide any details about the work they performed on the case.
Further, the service award is “more than 46 times the average class member’s” payout, she noted. The deal allocates roughly $1.88 million to the class members, with each getting about $216 on average.
In addition, the settlement allocates $100,000 for penalties under California’s Private Attorneys General Act and $30,000 for settlement administration costs.
Manzo, who worked as a shift manager at a McDonald’s location in Clovis, Calif., filed the lawsuit in 2020 on behalf of other similarly situated employees under California’s Labor Code and PAGA. She alleged McDonald’s failed to ensure that employees received wage statements that accurately reflected their correct pay rates and hours worked.
The order was entered Thursday in the U.S. District Court for the Eastern District of California.
Diversity Law Group, Hyun Legal APC, Law Offices of Choi & Associates, and Polaris Law Group LLP represent the workers. Jones Day represents McDonald’s.
The case is Manzo v. McDonald’s Rest. of Calif., Inc., E.D. Cal., No. 1:20-cv-01175, 1/20/22.
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