Case Name: Escobar v. Silicon Valley Security & Patrol, Inc.
Case No.: 2014-1-CV-272514

This lawsuit arises out of various alleged Labor Code violations. Plaintiff Carlos Escobar (“Plaintiff”) states that he has reached a settlement of his individual claims and the California Private Attorneys General Act (“PAGA”) claim asserted in this action against defendant Silicon Valley Security & Patrol, Inc. (“Defendant”). Labor Code section 2699 concerns PAGA claims. Labor Code section 2699, subdivision (l) states: “The superior court shall review and approve any penalties sought as part of a proposed settlement agreement pursuant to this part.” Plaintiff now seeks the Court’s approval of the penalties sought as part of the parties’ settlement of the PAGA claim.

Plaintiff states that the settlement provides for Defendant to pay $77,000 as the PAGA payment. Of that payment, 75% ($57,750) will be paid to the Labor Workforce Development Agency (“LWDA”) and 25% ($19,250) will be distributed pro rata as individual PAGA payments to each of the aggrieved employees. (Declaration of Norman Blumenthal in Support of Motion to Approve PAGA Settlement, ¶ 2.) In exchange, the settlement releases “all claims which were asserted in the PAGA Action or reasonably could have been asserted in the PAGA Action based upon the facts alleged in the PAGA Action.” (Id. at ¶ 4.)

Plaintiff cites to several cases for the proposition that a small PAGA payment is reasonable and has been approved by other courts. However, the fact that other courts have approved PAGA payments of any amount has no bearing on whether the payment in this case is reasonable. The Court does not have sufficient information to determine whether the settlement amount is reasonable. While the Court is cognizant of the fact that the settlement is confidential, details are needed regarding the potential recovery in this case, the number of aggrieved employees to receive payments (so that average payments can be calculated), and the amount of attorney’s fees and any other fees to be paid in the settlement. Accordingly, the hearing on this motion is CONTINUED to August 19, 2016. Supplemental briefing regarding the above issues shall be filed by August 10 at 5:00 p.m.