Frequently Asked Questions
- Why is there a Notice?
- What is this class action lawsuit about?
- What are the terms of the Settlement?
- What Do I Release Under the Settlement?
- How much will my payment be?
- How can I get a payment?
- What if I don’t want to be a part of the Settlement?
- How do I object to the Settlement?
- When and where will the Court decide whether to approve the Settlement?
- How do I get more information about the Settlement?
- Is there anything else I should know?
- Why is there a Notice?
A proposed class action settlement (the “Settlement”) of this lawsuit pending in the Orange County Superior Court (the “Court”) has been reached between Plaintiffs Elliott Olvera, Martha Perez, Maria Vega, Jose Carlos Castillo, and Melissa Gonzalez (“Plaintiffs”) and El Pollo Loco, Inc. (“Defendant”). Plaintiffs and Defendant are referred to herein as the “Parties”. The Court has granted preliminary approval of the Settlement. You may be entitled to receive money from this Settlement.
The class is defined as:
All individuals who are or previously were employed by Defendant El Pollo Loco, Inc. in a corporate owned El Pollo Loco restaurant located in California at any time during the Class Period. The “Class Period” is from April 12, 2010 to April 1, 2019.
The Class is divided into two subclasses, which are the Olvera Subclass and the Perez/Vega Subclass.
The Olvera Subclass consists of all members of the Class except for all current and former General Managers, Acting General Managers, General Managers in Training, Managers, Assistant Managers, Managers in Training, Team Leaders, Team Leaders in Training, Shift Leaders and Shift Leaders in Training (“non-managerial employees”).
The Perez/Vega Subclass consists of all current and former General Managers, Acting General Managers, General Managers in Training, Managers, Assistant Managers, Managers in Training, Team Leaders, Team Leaders in Training, Shift Leaders and Shift Leaders in Training (“managerial employees”) in the Class.
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The Notice explains the lawsuit, the Settlement, and your legal rights. It is important that you read the Notice carefully as your rights may be affected by the Settlement. You may have held jobs during the Class Period that make you a member of both Subclasses. As such, you can receive compensation as a member of both Subclasses. - What is this class action lawsuit about?
On April 24, 2014, Plaintiff Elliot Olvera filed a Complaint against Defendant in the Superior Court of the State of California, County of Orange (“Olvera Action”). Plaintiff Olvera asserted claims that Defendant: (1) Violated California Business and Professions Code § 17200 et seq.; (2) Failed to pay regular and overtime wages in violation of California Labor Code §§ 510 and 1194; (3) Failed to provide accurate itemized wage statements in violation of California Labor Code § 226; (4) Failed to provide wages when due in violation of California Labor Code §§ 201, 202 and 203. On June 16, 2016, Plaintiff Elliot Olvera filed a First Amended Complaint adding a claim under the Private Attorney General Act, Cal. Labor Code §§ 2689 et seq. (“PAGA”).
On June 16, 2016, Plaintiff Martha Perez filed a similar lawsuit against Defendant in the Superior Court of the State of California, County of Los Angeles (“Perez Action”). On February 7, 2017, Plaintiffs Maria Vega and Jose Castillo filed a similar lawsuit against Defendant in the Superior Court of the State of California, County of Los Angeles (“Vega Action”).
On February 23, 2018, the Court granted a petition for coordination of the Olvera Action, Perez Action, and Vega Action. On March 22, 2018, Hon. William D. Claster was assigned as coordination trial judge. The coordinated action was entitled El Pollo Loco Wage and Hour Cases, Case No. JCCP 4957 (the “Action”). On July 6, 2018, Plaintiff Melissa Gonzalez filed a similar lawsuit in Los Angeles County (“Gonzalez Action”), and this lawsuit was coordinated in the Action by Order dated December 12, 2018.
On January 17, 2019, the Parties participated in an all-day mediation presided over by Hon Peter D. Lichtman (Ret.), a respected jurist and experienced mediator of wage and hour class actions. During the mediation, the Parties, represented by their respective counsel, were able to agree to settle the Action based upon a mediator’s proposal. The Court granted preliminary approval of the Settlement on August 30, 2019.
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Defendant denies and disputes all claims asserted in the Action. Specifically, Defendant contended (and continues to contend) that the Action could not properly be maintained as a class action; that members of the class were paid overtime, provided meal and rest breaks in accordance with California law and were properly compensated under state law; that Defendant paid any members of the class who are former employees all wages due them at the time of their terminations; that Defendant provided accurate, itemized wage statements; that Defendant did not violate California Business and Professions Code section 17200 et seq; and that Defendant is not liable for any of the penalties claimed or that could be claimed in the Action. - What are the terms of the Settlement?
Gross Settlement Amount. Defendants have agreed to pay an “all in” amount of Sixteen Million Dollars ($16,000,000) (the “Gross Settlement Amount”) to fund the Settlement. The Gross Settlement Amount includes all payments of Settlement Shares to the Class, the Settlement Administrator’s fees and expenses, Class Representative Service Payments, Attorneys’ Fees and Costs to Class Counsel, and the PAGA Payment. The Gross Settlement Amount shall be allocated $11.1 million to the Olvera Subclass (“Olvera Settlement Amount”) and $4.9 million to the Perez/Vega Subclass (“Perez/Vega Settlement Amount”).
Amounts to be Paid From the Gross Settlement Amount.Subject to final Court approval, the following amounts will be deducted from the Gross Settlement Amount before settlement payments are made to Class Members:
• Settlement Administration Expenses. Payment to the Settlement Administrator, not to exceed $135,000. The Settlement Administrator shall determine the division of the Settlement Administration Expenses as between the Olvera Subclass and the Perez/Vega Subclass. The portion of the Settlement Administration Expenses attributed to the Olvera Subclass shall be paid from the Olvera Settlement Amount, and the portion of the Settlement Administration Expenses attributed to the Perez/Vega Subclass shall be paid from the Perez/Vega Settlement Amount.
• Attorneys’ Fees and Costs. Payment to Class Counsel of reasonable attorneys’ fees not to exceed one-third (1/3) of the Gross Settlement Amount for reasonable attorneys’ fees, and an additional amount to reimburse actual litigation costs billed to the Plaintiffs not to exceed $160,000. Subject to Court approval, the Olvera Counsel Fees Payment of not more than one-third (1/3) of Olvera Settlement Amount of $11,100,000 ($3,700,000) will be paid from to Class Counsel for the Olvera Subclass. Subject to Court approval, the Perez/Vega Counsel Fees Payment of not more than one-third (1/3) of Perez/Vega Settlement Amount of $4,900,000 ($1,633,333) will be paid to Class Counsel for the Perez/Vega Subclass. Counsel for Melissa Gonzalez (LOYR, APC) shall be permitted to separately apply for an award of attorneys’ fees and costs which shall be part of the Olvera Counsel Fees Payment and Olvera Litigation Expenses Payment, respectively, in an amount to be determined by the Court. The Perez/Vega Counsel Fees Payment shall be allocated as follows: 30% to Mooradian Law, APC, 20% to Moss Bollinger, LLP, 16.66% to Schneider Wallace Cottrell Konecky Wotkyns LLP, 16.66% to Law Offices Of Sahag Majarian II, and 16.66% to Boucher LLP.
• Class Representative Service Payments. Class Representative Service Payments of not more than $15,000 each to Elliott Olvera, Martha Perez, Maria Vega, Jose Carlos Castillo and a Class Representative Service Payment of not more than $10,000 Melissa Gonzalez to compensate them for services on behalf of the Class in initiating and prosecuting the Action, and for the risks they undertook. The Class Representative Service Payments for Elliott Olvera and Melissa Gonzalez will be paid out of the Olvera Settlement Amount. The Class Representative Service Payments for Martha Perez, Maria Vega, and Jose Carlos Castillo will be paid out of the Perez/Vega Settlement Amount.
• PAGA Payment. A payment of $360,000 relating to Plaintiffs’ claim under PAGA which shall be divided $252,000 from the Olvera Settlement Amount and $108,000 from the Perez/Vega Settlement Amount. The $252,000 from the Olvera Settlement Amount shall be allocated $189,000 to the LWDA (the “Olvera LWDA Payment”) and $63,000 to the Net Olvera Settlement Amount for distribution to the Participating Class Members in the Olvera Subclass. The $108,000 from the Perez/Vega Settlement Amount shall be allocated $81,000 to the LWDA (the “Perez/Vega LWDA Payment”) and $27,000 to the Net Perez/Vega Settlement Amount for distribution to the Participating Class Members in the Perez/Vega Subclass.
Calculation of Payments to Participating Class Members. After all the above payments are deducted from the Gross Settlement Amount, the remaining portion, called the “Net Settlement Amount,” shall be distributed to Class Members who do not request exclusion (“Participating Class Members”).
Each Participating Class Member shall be entitled to receive a portion of the Net Settlement Amount (his/her “Settlement Share”). The Settlement Share for each Participating Class Member will be calculated separately for the Olvera Subclass and the Perez/Vega Subclass.The Settlement Share for the Olvera Subclass will be calculated by: (a) dividing the Net Olvera Settlement Amount by the total number of workweeks worked for all Participating Olvera Subclass Members in the Olvera Subclass that occurred during the Class Period; and (b) multiplying the result by each individual Participating Olvera Subclass Member’s total number of workweeks worked that occurred during the Class Period.
The Settlement Share for the Perez/Vega Subclass will be calculated by: (a) dividing the Net Perez/Vega Settlement Amount by the total number of workweeks worked for all Participating Perez/Vega Subclass Members in the Perez/Vega Subclass that occurred during the Class Period; and (b) multiplying the result by each individual Participating Perez/Vega Subclass Member’s total number of workweeks worked that occurred during the Class Period.
If a Participating Class Member is a member of both the Olvera Subclass and the Perez/Vega Subclass, he or she will receive two separate Settlement Shares, one each from the allocation for each Subclass.
Tax Matters. 20% of each Settlement Share is in settlement of wage claims, which is subject to wage withholdings, and shall be reported on IRS Form W-2. 40% of each Settlement Share is in settlement of claims for interest and 40% of each Settlement Share is in settlement of claims for penalties, and shall be reported on IRS Form 1099. Defendant will be separately paying the employer’s share of payroll taxes. Neither Class Counsel nor Defendant’s counsel intend anything contained in this Settlement to constitute advice regarding taxes or taxability. You may wish to consult a tax advisor concerning the tax consequences of the payments received under the Settlement.
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Conditions of Settlement. This Settlement is conditioned upon the Court entering an order granting final approval of the Settlement and entering judgment. - What Do I Release Under the Settlement?
Released Class Claims. Upon entry of final judgment, Plaintiffs and the Participating Class Members shall release all Released Class Claims that occurred during the Class Period as to the Defendant and the other Released Parties. “Released Class Claims” are defined as all claims alleged in the Action which occurred during the Class Period, and expressly excluding all other claims, including claims for vested benefits, wrongful termination, unemployment insurance, disability, social security, workers’ compensation, and claims outside of the Class Period. In exchange for their Settlement Share, the Participating Class Members will waive, release and forever discharge, and agree that they will not in any manner institute, prosecute or pursue, any Released Class Claims.
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This means that, if you do not timely and formally exclude yourself from the Settlement, you cannot sue, continue to sue, or be part of any other lawsuit against Defendant about the legal issues resolved by this Settlement. It also means that all of the Court’s orders in the Action will apply to you and legally bind you. - How much will my payment be?
The mailed Notice countains your estimated Settlement Payment. If you did not receive it, please contact the case help line at 866-548-5826 and provide an updated address
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If you wish to challenge the information set forth in the Notice, then you must submit a written, signed dispute challenging the information along with supporting documents to the Settlement Administrator at the address provided in this Notice no later than November 11, 2019. - How can I get a payment?
To get money from the Settlement, class members do not have to do anything. A check for your settlement payment will be mailed automatically to the same address as the Notice upon finalization of the Settlement by the Court. If your address is incorrect or has changed, you must notify the Settlement Administrator. The Settlement Administrator contact information is provided under section 10, below.
Top - What if I don’t want to be a part of the Settlement?
If you do not wish to participate in the Settlement, you may exclude yourself from the Settlement or “opt out.” If you opt out, you will receive NO money from the Settlement, and you will not be bound by its terms.
To opt out, you must submit to the Settlement Administrator, by First-Class Mail, a written, signed and dated request for exclusion postmarked no later than November 11, 2019. A Request for Exclusion Form is included with the notice. The address for the Settlement Administrator is provided under section 10, below. The Request for Exclusion must contain your name, address, signature and the last four digits of your Social Security Number for verification purposes. The Request for Exclusion must be signed by you. No other person may opt out for a member of the Class.Written requests for exclusion that are postmarked after November 11, 2019, or that are incomplete or unsigned will be rejected, and those Class Members will remain bound by the Settlement and the release described above.
Top - How do I object to the Settlement?
Any Class Member, who has not opted out and believes that the Settlement should not be finally approved by the Court for any reason, may object to the proposed Settlement. Objections must be in writing and state the Class Member’s name, current address, telephone number, and describe why you believe the Settlement is unfair and whether you intend to appear at the Final Approval Hearing. All objections or other correspondence must also state the name and number of the case, which is El Pollo Loco Wage and Hour Cases, JCCP No. 4957.
The objections must be delivered or mailed to the Settlement Administrator postmarked no later than November 11, 2019. You must also submit copies of the objection to the Parties’ counsel. The addresses for the Settlement Administrator and the Parties’ counsel are provided under section 10, below.
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To object to the Settlement, you must not opt out. If the Court approves the Settlement, you will be bound by the terms of the Settlement in the same way as Class Members who do not object. Any Class Member who does not object in the manner provided in the Notice shall have waived any objection to the Settlement, whether by appeal or otherwise. - When and where will the Court decide whether to approve the Settlement?
The Court will hold a Final Approval Hearing at 9:00 a.m. on January 31, 2020 at the Orange County Superior Court Courthouse, located at 751 W. Santa Ana Blvd, Santa Ana, California 92701 in Department CX104, before Judge William D. Claster. At this hearing the Court will consider whether the Settlement is fair, reasonable, and adequate. The purpose of this hearing is for the Court to determine whether to grant final approval to the Settlement. If there are objections, the Court will consider them. This hearing may be rescheduled by the Court without further notice to you. You are not required to attend the Final Approval Hearing, although any Class Member is welcome to attend the hearing at their own expense.
Top - How do I get more information about the Settlement?
You may call the Settlement Administrator at 1-866-548-5826 or write to
El Pollo Loco Settlement Administrator
PO Box 43208
Providence, RI 02940-3208
or contact counsel at the telephone numbers listed below.
You may view the Settlement Agreement, the Final Judgment, the Class Notice, and other Settlement documents by going to Case Documents tab. You may also obtain a copy of the Settlement Agreement, the Final Judgment or other Settlement documents by writing to Class Counsel or by going to Class Counsel’s website at www.bamlawca.com under “Class Notices” for Olvera v. El Pollo Loco.
The documents for this case are also available online at the Court’s website: http://www.occourts.org/, or in person at the Clerk’s Office located at 751 W. Santa Ana Blvd., Santa Ana, CA 92701.
The contact information for the Parties’ counsel is as follows:
Class Counsel for the Olvera Subclass:
Norman Blumenthal
Kyle Nordrehaug
Blumenthal Nordrehaug Bhowmik De Blouw LLP
2255 Calle Clara
La Jolla, CA 92037
Tel: 858-551-1223 / Fax: 858-551-1232
Email: Norm@bamlawca.com
Website: www.bamlawca.com
Class Counsel for the Perez/Vega Subclass:
Zorik Mooradian
Mooradian Law, APC
24007 Ventura Blvd., Suite 210
Calabasas, CA 91302
Tel: 818-487-1998 / Fax: 888-783-1030
Email: zorik@mooradianlaw.com
Carolyn Hunt Cottrell
Schneider Wallace Cottrell Konecky Wotkyns LLP
2000 Powell Street, Suite 1400
Emeryville, CA 94608
Tel: 415-421-7100 / Fax: 415-421-7105
Email: ccottrell@schneiderwallace.com
Counsel for Defendant:
Tyler J. Woods
Fisher & Phillips LLP
2050 Main Street, Suite 1000
Irvine, CA 92614
The Notice summarizes the proposed Settlement. More details are in the Settlement Agreement.
Top - Is there anything else I should know?
You must inform the Settlement Administrator of any change of address to ensure receipt of your settlement payment.
Settlement checks will be null and void 180 days after issuance if not deposited or cashed. In such event, all unclaimed funds will be paid to the California Controller Unclaimed Property Fund in the name of the Class Member. If your check is lost or misplaced, you should contact the Settlement Administrator immediately to request a replacement.
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