The notice explains the nature of this lawsuit, as well as a proposed settlement of this lawsuit, and informs you of your legal rights under that proposed settlement. You received the notice because you may be a member of a class on whose behalf this class action lawsuit has been brought. For settlement purposes only, the Court has conditionally certified a Class comprised of:
All persons who participated in an interview for a California-based temporary assignment with a TEG Staffing client, whether in person or by telephone or video conference, at any time between March 12, 2011 and October 13, 2017, and who are not expressly excluded from the class (the “Class”).
All of TEG Staffing, Inc.’s California-based temporary staffing employees who were first on-boarded or hired by TEG Staffing, Inc. on or after January 1, 2016 and who did not opt out of TEG Staffing, Inc.’s Dispute Resolution Program are expressly excluded from the Class. All internal employees of TEG Staffing, Inc., unless they also had an interview for a temporary assignment with a TEG Staffing, Inc. California-based client during the Class Period, are expressly excluded from the Class. All persons who sought a direct hire placement with a TEG Staffing, Inc. client, unless they also had an interview for a temporary assignment with a TEG Staffing, Inc. California-based client during the Class Period, are expressly excluded from the Class. All other persons in TEG Staffing, Inc. staffing databases that TEG Staffing, Inc. can affirmatively identify as having been considered for assignment or sent to a client that does not require interviews are expressly excluded from the Class. All persons who were submitted for an interview with a TEG Staffing, Inc. client by an entity other than TEG Staffing, Inc. or the Released Parties are excluded from the class.
The Court has appointed as class counsel the Patterson Law Group (“Plaintiff’s Attorneys”).
On March 12, 2015, Plaintiff Tiffany Stimpson (“Plaintiff”) initiated a putative class action against Defendant TEG Staffing (“Defendant”) in the Superior Court for the County of San Diego, Case No. 37-2015-00008440-CU-OE-CTL (the “Action”). Plaintiff alleged five causes of action: (1) failure to pay minimum wage (Cal. Lab. Code §§ 1194(a) and 1198); (2) failure to provide accurate itemized wage statements (Cal. Lab. Code § 226(a)); (3) failure to pay all wages due upon termination (Cal. Lab. Code §§ 201-203); (4) unlawful payment of lower wage (Cal. Lab. Code §§ 222 and 223); (5) unfair, unlawful or fraudulent business practices (Cal. Bus. & Prof. Code § 17200 et seq.). Plaintiff seeks to represent a class of persons who participated in an interview for a California-based temporary assignment with Defendant’s clients between March 12, 2011, and October 13, 2017.
Defendant denied the allegations in the Action and continues to deny that it failed to pay minimum wage, failed to provide accurate itemized wage statements, failed to pay wages upon termination, unlawfully paid a lower wage, or committed unfair, unlawful, or fraudulent business practices. Defendant denies any liability or wrongdoing of any kind associated with any of the claims alleged in the Action. In addition, Defendant denies, and continues to deny, that the Action could or should be certified to proceed as a class action.
THE COURT HAS NOT RULED ON THE MERITS OF PLAINTIFF’S CLAIMS, DEFENDANT’S DEFENSES, OR THE SUBSTANTIVE CONTENTIONS OF THE PARTIES. NO INFERENCES REGARDING THE MERITS OF THE LITIGATION SHOULD BE DRAWN FROM THE SENDING OF THIS NOTICE. THIS NOTICE IS NOT MEANT TO IMPLY THAT THERE HAS BEEN ANY VIOLATION OF LAW OR WRONGDOING BY ANY PARTY OR THAT A RECOVERY AFTER TRIAL COULD BE HAD IF THE LITIGATION IS NOT SETTLED.Top
The Court did not decide in favor of Plaintiff or Defendant. Plaintiff thinks she would have prevailed on her claims at a trial. Defendant does not think Plaintiff would have won anything from a trial because it has asserted legal and factual defenses to the claims. But there was no trial. Instead, both sides agreed to a settlement. That way they avoid the costs, risks, and uncertainty of a trial, and the people affected will get compensation. Plaintiff and Plaintiff’s Attorneys think the settlement is fair, reasonable, adequate, and in the best interests of all members of the Class.Top
All persons who participated in an interview for a California-based temporary assignment with a TEG Staffing client, whether in person or by telephone or video conference, between March 12, 2011 and October 13, 2017, who are not expressly excluded from the class and who do not opt out of the settlement as explained below would be part of the “Settlement Class” (also referred to as a “Settlement Class Member”). The period of time between March 12, 2011 and October 13, 2017 is referred to as the “Class Period.”Top
PATTERSON LAW GROUP
James R. Patterson
Allison H. Goddard
1350 Columbia Street, Suite 603
San Diego, CA 92101
Telephone: (619) 756-6990
Facsimile: (619) 756-6991
Counsel for Defendant
BRYAN CAVE LLP
Julie E. Patterson
3161 Michelson Drive, Suite 1500
Irvine, CA 92612-4414
Telephone: (949) 223-7000
Facsimile: (949) 223-7100
The Defendant shall pay, or cause to be paid, cash compensation to each Settlement Class Member who qualifies as an “Authorized Claimant.” Each Verified Subclass Member who is an Authorized Claimant shall receive a direct payment of $12.
The amount paid to individual Settlement Class Members (“Settlement Payments”) shall be allocated as follows: one-half (1/2) to miscellaneous income and one-half (1/2) to interest and penalties. No taxes will be withheld or paid by Defendant from the Settlement Payments. The Settlement Payments shall not be reported on Form 1099-MISC because the individual Settlement Payments will be less than $600. Each individual Settlement Class Member shall be responsible for his/her share of taxes due on his/her Settlement Payment, if any. To ensure compliance with requirements imposed by the IRS, we inform you that any United States federal tax advice contained in this Notice was not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing or recommending to another party any transaction or matter addressed herein.
If any Settlement Class Member does not cash his/her settlement check within ninety (90) Days after the Settlement Administrator mails the Settlement Payment, the Settlement Administrator shall void the Settlement Payment and deposit each such Settlement Class Member’s Settlement Payment into the appropriate State of California Division of Labor Standards Enforcement Unpaid Wage Fund on the Settlement Class Member’s behalf. The check cashing deadline shall be printed on the settlement check.Top
Defendant determined through its databases that some members of the Class were likely sent on an interview for a temporary staffing assignment during the Class Period or had assignments during the Class Period with clients Defendant has identified as requiring an interview. These persons are members of the “Verified Subclass” or “Verified Subclass Members.” Verified Subclass Members are not required to submit a Proof of Claim Form. Verified Subclass Members who do not exclude themselves from the class automatically become “Authorized Claimants.”
IF YOU RECEIVED THE VERIFIED NOTICE, YOU ARE A VERIFIED SUBCLASS MEMBER AND YOU WILL AUTOMATICALLY RECEIVE A SETTLEMENT PAYMENT OF $12 IF YOU DO NOT SUBMIT A WRITTEN REQUEST FOR EXCLUSION.Top
As a Verified Subclass Member you will receive a payment of $12 if you do not opt out of the Settlement.Top
Subject to Court approval, Plaintiff will be paid a “Class Representative Enhancement” in an amount up to five thousand dollars ($5,000) for her service as class representative, as well as her willingness to accept the risk of paying Defendant’s attorneys’ fees and costs in the event of an unsuccessful outcome.Top
Plaintiff’s Attorneys will apply to the Court for an award of reasonable attorneys’ fees and costs (“Plaintiff’s Attorneys’ Fees and Costs”) in an amount not to exceed two hundred and sixty-thousand dollars ($260,000). Plaintiff’s Attorneys Fees and Costs will be requested based on their actual fees and costs incurred on the case.Top
The Settlement is intended to settle all claims against Defendants that were raised or that could have been raised based on the same facts alleged in the Complaint in the Action during the Class Period, including without limitation, all claims of the Settlement Class Members for alleged (1) failure to pay minimum wage (Cal. Lab. Code §§ 1194(a) and 1198); (2) failure to provide accurate itemized wage statements (Cal. Lab. Code § 226(a)); (3) failure to pay all wages due upon termination (Cal. Lab. Code §§ 201-203); (4) unlawful payment of lower wage (Cal. Lab. Code §§ 222 and 223); (5) unfair, unlawful or fraudulent business practices (Cal. Bus. & Prof. Code § 17200 et seq.), among other claims, including damages, liquidated damages, treble damages, statutory and civil penalties, interest, punitive damages, attorneys’ fees, costs, expenses, restitution or injunctive relief. The release of claims set forth below in Section J which describes exactly the legal claims that you will give up if you do not exclude yourself from the Settlement Class, will extend to Defendant and its parents, predecessors, all affiliates, subsidiaries, officers, directors, agents, employees, and stockholders (“Released Parties”).
If you participated in an interview for a California-based temporary assignment with a client of Defendant during the Class Period, and you do not elect to exclude yourself from the Settlement Class, you will be deemed to have entered into the release of claims and to have released your claims against the Released Parties. If the Settlement is not approved by the Court or does not become final for some other reason, the litigation will continue.Top
Plaintiff and the Settlement Class Members fully and finally release, as of the Final Settlement Date, the Released Parties, from the following claims: (i) the causes of action pled, or that could have been pled based on the facts alleged, in the Complaint, including claims for failure to pay wages, minimum wage violations, failure to provide accurate itemized wage statements, failure to pay agreed-upon wages; and unfair, unlawful or fraudulent business practices under California Business and Professions Code section 17200 based on the foregoing claims; (ii) any and all other claims which arise from the facts alleged in the Complaint and are based on or relate to the alleged failure to pay wages, minimum wage violations, failure to provide accurate itemized wage statements, failure to pay agreed-upon wages; and unfair, unlawful or fraudulent business practices during the Class Period which are based on a federal or California statute, ordinance, wage order, regulation, common law, or other source of law, whether such claims are in the nature of wages, compensation, damages, waiting time penalties, statutory penalties, interest, attorneys’ fees (including claims for attorneys’ fees under Code of Civil Procedure section 1021.5), costs, expenses, liquidated damages, restitution or injunctive relief, whether in contract, tort, or pursuant to a statutory remedy, including, but not limited to, any claims that were or could have been brought, based on the same facts, under California Labor Code sections 201, 201.3, 201.5, 202, 203, 205.5, 218, 218.5, 218.6, 222, 226, 1194, 1194.2, 1197 and 1198, and the Industrial Welfare Commission Minimum Wage Order and applicable Wage Orders, and all implementing regulations and interpretative guidance or rulings and the like; and (iii) any related claims for conversion, accounting, declaratory relief, or injunctive relief based solely on the causes of action pled, or that could have been pled based on the facts alleged, in the Complaint.Top
The Court will conduct a final fairness hearing regarding the proposed Settlement (the “Final Settlement Hearing”) on March 9. 2018 at 10:30 a.m., in Department C-68, of the San Diego Superior Court, Central Courthouse, 330 W. Broadway St., San Diego, California 92101. The Court will determine: (i) whether the Action should be finally certified as a class action solely and exclusively for Settlement purposes; (ii) whether the Settlement should be given the Court’s final approval as fair, reasonable, adequate and in the best interests of the Settlement Class Members, and if so, whether to enter a judgment fully and finally resolving Plaintiff’s and Settlement Class Members’ claims against Defendant; (iii) whether the Settlement Class Members should be bound by the terms of the Settlement, including the release of claims; (iv) the amount of the attorneys’ fees and costs to be awarded to Plaintiff’s Attorneys; and (v) the amount that should be awarded to Plaintiff for the Class Representative Enhancement. At the Final Settlement Hearing, the Court will hear all timely and properly filed objections, as well as arguments for and against the proposed Settlement. Assuming you do not elect to exclude yourself from the Settlement, you have a right to attend this hearing, but you are not required to do so. You also have the right to hire an attorney to represent you, or to enter an appearance and represent yourself. The Court has reserved the right to adjourn the Final Settlement Hearing to consider any issue, without further notice of any kind.
The Court’s final judgment will be posted on the Settlement Administrator’s website www.TEGstaffingsettlement.com.Top
OPTION 1 – REMAIN A SETTLEMENT CLASS MEMBER. IF YOU WISH TO REMAIN A SETTLEMENT CLASS MEMBER AND OBTAIN THE SHARE OF THE SETTLEMENT THAT YOU ARE ENTITLED TO RECEIVE YOU DO NOT NEED TO DO ANYTHING OTHER THAN MAKE SURE THE SETTLEMENT ADMINISTRATOR HAS YOUR CURRENT ADDRESS. YOU ARE NEVER REQUIRED TO GO TO COURT OR PAY ANYTHING TO THE LAWYERS IN THIS CASE. If the Court approves the proposed Settlement, you automatically will be mailed your share of the Settlement proceeds. If the Court does not approve the Settlement, the lawsuit will continue, and you may or may not be designated a Class Member at a later time. If your address information is incorrect or you move, provide your current address to: TEG Staffing, Inc. Claims Administrator at P.O. Box 404041, Louisville KY, 40233-4041.
OPTION 2 – REMAIN A CLASS MEMBER AND OBJECT TO THE SETTLEMENT. If you wish to remain a Settlement Class Member, but you object to the proposed Settlement (or any of its terms) and wish the Court to consider your objection at the Final Settlement Hearing, you must put your objection in writing. Your written objection must contain the name of the case and the docket number (which are shown at the top of this Notice), your name and address, your reason or reasons for objection, and an indication of whether you wish to appear and be heard at the Final Settlement Hearing. To object, you must mail the written objection and notice of intent to appear at the Final Settlement Hearing to TEG Staffing, Inc. Claims Administrator, P.O. Box 404041, Louisville KY, 40233-4041.
To be valid and effective, all objections to approval of the Settlement and all notices of intention to appear must be postmarked to the Settlement Administrator no later than January 29, 2018. DO NOT CONTACT THE COURT. Any Class Member who fails to object to the proposed Settlement as described above will lose the right to object to it.
OPTION 3 – EXCLUDE YOURSELF FROM THE CLASS. You have a right to exclude yourself (“opt out”) from the class, but if you choose to do so, YOU WILL NOT RECEIVE ANY BENEFITS FROM THE PROPOSED SETTLEMENT AND YOU WILL NOT HAVE STANDING TO OBJECT TO THE SETTLEMENT. You will not be bound by a judgment in this case, you will not release your claims against the Defendant, and you will have the right to file your own lawsuit against the Defendant and pursue your own claims in a separate suit or continue with a previously filed pending lawsuit concerning the released claims. If you want to exclude yourself from the Class, you must complete and sign a written request for exclusion containing your name, address and telephone number. The written request for exclusion must be sent by certified mail with return receipt requested to TEG Staffing, Inc. Claims Administrator, P.O. Box 404041, Louisville KY, 40233-4041. Your written request for exclusion must be postmarked on or before January 29, 2018 and received by the Settlement Administrator. Any request for exclusion post-marked after this date or not received by the Settlement Administrator shall be of no force and effect. Any Class Member who files a complete and timely request for exclusion shall, upon receipt by the Settlement Administrator, no longer be a member of the Settlement Class, shall be barred from participating in any portion of the Settlement, and shall receive no benefits from the Settlement. Any such person, at their own expense, may pursue any claims he/she may have against the Defendant.Top
If you wish to learn more about the Action and the Settlement, including the precise terms and conditions of the Settlement as set forth in the detailed Class Action Stipulation of Settlement, you may review the pleadings, the orders entered by the Court, and other papers filed in this litigation, at the San Diego Superior Court, Central Courthouse, 330 W. Broadway St., San Diego, California 92101, during its regular business hours each business day.
ALL INQUIRIES REGARDING THIS LITIGATION SHOULD BE MADE TO THE SETTLEMENT ADMINISTRATOR:
TEG Staffing, Inc. Claims Administrator
P.O. Box 404041
Louisville KY, 40233-4041
You may also call Class Counsel listed above. PLEASE DO NOT CONTACT THE COURT OR DEFENDANT’S COUNSEL FOR INFORMATION.Top