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Judge gives preliminary approval to $5.6 million settlement with staffing firm

November 28, 2017

A federal judge in California on Monday gave preliminary approval to a $5.6 million settlement in a wage-and-hour class-action lawsuit against Staffmark Holdings Inc., according to court records.

The settlement class includes workers employed by Staffmark at CEVA Logistics US operating centers in California from April 17, 2011, through Monday, according to court records. The class is estimated at approximately 4,407 workers.

CEVA is not included in the settlement.

“Staffmark highly values our employees and we contend that there is no merit to this case,” a representative from Staffmark said in a statement. “We made the decision to settle in order to avoid a long-term legal battle and extensive legal costs.”

The lawsuit alleged failure to provide meal breaks and rest periods as well as failure to pay hourly wages, failure to provide accurate wage statements, failure to timely pay all final wages and failure to pay wages without a discount.

Among concerns in the complaint, plaintiffs counsel wrote workers had to spend 10 minutes exiting through a security line to have lunch and another 10 minutes through a security line to re-enter the CEVA facility, taking a 20-minute chunk out of the 30-minute lunch. “Because of security checks that would have taken roughly 20 minutes (10 minutes to leave the facility, and 10 minutes coming back into the facility); employees were effectively denied the opportunity to leave the premises during meal breaks and take 30-minute uninterrupted meal breaks,” according to a complaint in the lawsuit.

It also claimed workers were not paid wage for work performed over 10 hours in a day. And plaintiff’s counsel wrote that some workers were paid via pay cards and incurred fees to access cash.

Earl Fronda, the named plaintiff, was an hourly worker at a CEVA warehouse in Carson, Calif. The lawsuit was initially filed on April 17, 2015.

The lawsuit is Earl Fronda v. Staffmark Holdings Inc.; case no. 15-cv-02315-MEJ.