Salazar v. Sedgwick Claims Management Services, Inc., Pending before the Superior Court for the County of Los Angeles Case No. BC556145 If you worked for Sedgwick Claims Management Services, Inc. ( Sedgwick ) as a non-exempt, Workers Compensation Claims Adjuster at any time from August 28, 2010 through September 14, 2017, you could receive money from a class action settlement. <<EmployeeName>> <<Address1>> <<Address2>> <<City>>, <<State>> <<Zip>> DO NOTHING EXCLUDE YOURSELF OBJECT A Court approved this notice. This is not an advertisement. You are not being sued. Your legal rights are affected whether you act or not. PLEASE READ THIS NOTICE. YOUR LEGAL RIGHTS AND OPTIONS IN THIS SETTLEMENT INCLUDE THE FOLLOWING: You will receive a payment from the Settlement. No action is required for you to get your share of this Settlement. Get no payment. This is the only option that allows you to file your own lawsuit for the claims released in this Settlement. For information on how to exclude yourself, see page 5. The deadline to exclude is November 13, 2017. If you choose, you may object to this Settlement. The Court may or may not agree with your objection. Objecting to the Settlement will not exclude you from the Settlement. For information on how to object to the Settlement, see page 5. The deadline to object is November 13, 2017. WHAT IS IN THIS NOTICE 1. Why Should You Read This Notice?.. Page 2 2. What Is The Class Action Settlement?... Page 2 3. What Is The Case About?... Page 2 4. How Much Can I Expect To Receive?... Page 3 5. Why Did Sedgwick Join In This Notice?... Page 3 6. Who Is The Plaintiff In This Class Action? Page 3 7. Who Are The Attorneys Representing The Parties?... Page 4 8. What Are My Rights? How Will My Rights Be Affected?... Page 4 9. How Will The Attorneys For The Class And Others Be Paid?... Page 6 10. Where Do I Find More Information?.. Page 6 1
1. Why Should You Read This Notice? You have received this Notice because records indicate that you are a Class Member of the class settled in a class action, as defined below. The Settlement will resolve all class claims described below during the Settlement Period, which is between August 28, 2010 and September 14, 2017. This Notice tells you of your rights to share in the Settlement. There was a hearing on September 14, 2017 at 10:30 a.m. in the Los Angeles Superior Court, State of California. The Court determined only that there is sufficient evidence to suggest that the proposed settlement might be fair, adequate and reasonable, and that a final determination of the issues will be made at the final approval hearing. The Court also ordered that you receive this Notice. Class Members includes all current and former non exempt Workers Compensation Claims Adjusters who were employed by Sedgwick in California during the Settlement Period (defined as any time from August 28, 2010 through September 14, 2017). The Court will hold a Final Approval Hearing concerning the proposed Settlement on January 5, 2018 at 10:00 a.m., in Department 309 of the Los Angeles Superior Court located at 600 South Commonwealth Avenue, Los Angeles, California, 90005. The Final Approval Hearing may be continued to another date without further notice. 2. What Is The Class Action Settlement? The Court must approve the terms of the Settlement described herein as fair, adequate, and reasonable to the Class Members. The Settlement will affect all Class Members. You may get money from the Class Action Settlement unless you request to be excluded (opt-out) from the Class. This Notice will explain the terms of the Settlement and the amount of money you may receive under the Settlement. 3. What Is The Case About? Plaintiff Antoinette Salazar filed a Complaint alleging individual and class claims against Sedgwick on August 28, 2014, in Los Angeles Superior Court, Case Number BC556145. Plaintiff s complaint ( Action ) seeks recovery of unpaid wages (including premium pay), penalties, restitution, interest, and attorneys fees and costs, as well as injunctive relief. This Action is for Sedgwick s alleged: (1) failure to pay overtime compensation; (2) failure to provide Class Members with law compliant meal and rest breaks, (3) failure to provide wages when due; (4) failure to comply with itemized employee wage statements provisions; and (5) violation of California Business and Professions Code section 17200, et seq. Sedgwick wholly denies the allegations raised in the Action and vehemently believes it has no liability for any of Plaintiff s or Class Members claims under any statute, wage order, common law, or equitable theory. Despite both Parties positions and arguments, on July 21, 2017 the Parties reached a Settlement subject to Court approval as represented in the Joint Stipulation of Class Action Settlement and Release (the Settlement or Settlement Agreement ). Class Counsel believe that the Settlement is fair, reasonable, and adequate, and is in the best interests of Class Members. Likewise, Sedgwick decided that settlement is favorable because it avoids the time, risk, and expense of a lengthy lawsuit, and settlement immediately resolves, finally and completely, the pending and potential claims. Sedgwick denies any wrongdoing and denies that it has any liability for the claims alleged in the Action. 2
4. How Much Can I Expect To Receive? Sedgwick will pay a total sum of Two Million and Five Hundred Thousand Dollars ($2,500,000.00) ( Gross Fund Value ), which includes all settlement payments, attorneys fees and litigation costs and expenses, costs of administering the Settlement, and the Class Representative s Service Award, to resolve this class action. Further, Sedgwick will pay all applicable employer s share of payroll taxes in addition to the Gross Fund Value. After attorneys fees and costs, costs of administering the Settlement, and the Class Representatives Service Award, what remains (the Net Fund Value ) will be available to pay all Settlement Class Members their Individual Settlement Payments, based on the number of work weeks they worked during the Settlement Period. The respective individual work weeks for each Class Member will be divided by the total work weeks of all Class Members, and the resulting number will then be multiplied by the Net Fund Value to calculate each Class Member s estimated Individual Settlement Payment. Each Individual Settlement Payment will be reduced by any legally mandated employee tax withholdings (e.g., employee payroll taxes, etc.) for each Class Member. Each Settlement Class Member will receive approximately (TBD) for each work week worked in the Settlement Period. Sedgwick s records indicate that you were employed from <<HDate>> to <<TDate>> as a non-exempt Workers Compensation Claims Adjuster and worked <<workweeks>> work weeks between August 28, 2010 and September 14, 2017. Based on this estimate and Sedgwick s records, your estimated payment as a Class Member would be <<$estamount>>. If you dispute the assessment of your dates of employment or the number of work weeks you worked as set forth above, you must postmark a letter to the Settlement Administrator listed at the end of this Notice on or before November 13, 2017. You should submit to the Settlement Administrator documentation to support your dates of employment and/or the number of work weeks you believe you worked. NOTE: EVEN IF YOU DISPUTE THE AMOUNT OF YOUR SETTLEMENT PAYMENT, YOU WILL STILL RECEIVE MONEY FROM THE SETTLEMENT IF YOU DO NOT REQUEST TO BE EXCLUDED FROM THE CLASS, BUT THE AMOUNT MAY BE DIFFERENT FROM YOUR ESTIMATED PAYMENT LISTED ABOVE. It is also your responsibility to keep a current address on file with the Settlement Administrator to ensure receipt of your payment under the Settlement. 5. Why Did Sedgwick Join In This Notice? Sedgwick does not admit any claim alleged in the Action and denies that it owes money for any of the claims in this matter. Sedgwick is settling the lawsuit as a compromise, to avoid engaging in further litigation. Sedgwick reserves the right to object to and defend against any claim if, for any reason, the Settlement fails. The Sedgwick Settlement Administrator s website contains all documents submitted to the Court regarding this Settlement, and may be accessed at www.cptgroup.com/sedgwicksettlement. 6. Who Is The Plaintiff In This Class Action? Antoinette Salazar is the Plaintiff and Class Representative in this class action lawsuit. Class Representative is acting on behalf of herself and on behalf of other Class Members. 3
7. Who Are The Attorneys Representing The Parties? Attorneys for Plaintiff & the Class are: David R. Markham, Esq. Maggie Realin, Esq. Michael J. Morphew, Esq. The Markham Law Firm 750 B Street, Suite 1950 San Diego, CA 92101 Tel: (619) 399-3995 Fax: (619) 615-2067 Email: mrealin@markham-law.com Attorneys for Defendant are: Scott M. Plamondon, Esq. Plamondon Law Group 770 L Street, Suite 950 Sacramento, CA 95814 Tel: (916) 426-6510 Email: scott@plamondonlaw.com Walter L. Haines, Esq. United Employees Law Group 5500 Bolsa Ave, Suite 201 Huntington Beach, CA 92649 Tel: (310) 234-5678 Fax: (562) 256-1006 *Please contact the Settlement Administrator at 1-833-529-0501 or Plaintiff s attorneys, should you have any questions regarding this settlement. 8. What Are My Rights? How Will My Rights Be Affected? Class Counsel, appointed and approved by the Court for Settlement purposes only, will represent you. Participating in the Settlement Under the Settlement, you will automatically receive a settlement payment unless you request to be excluded by following the opt out procedure set forth below. This Notice of Settlement states your dates of employment with Sedgwick as a non-exempt Workers Compensation Claims Adjuster, and the total number of work weeks you worked for Sedgwick during the Settlement Period. Your Individual Settlement Payment will be based on that number. If the information on this Notice is correct, then you do not need to take any further action to receive your settlement payment. If you believe the dates of your employment with Sedgwick and/or work week information shown above is incorrect, you must postmark a letter to the Settlement Administrator listed at the end of this Notice on or before November 13, 2017. You should submit to the Settlement Administrator documentation to support the number of work weeks you believe you worked during the Settlement Period. If there is a dispute about the number of work weeks you worked, the Settlement Administrator will review the records to resolve the dispute. If you are a current employee of Sedgwick, your decision as to whether or not participate in this Settlement will not affect or in any way impact your employment. 4
Objecting to the Settlement If you wish to Object to the Settlement, you may submit your written Objection to the Settlement Administrator stating the basis or reason(s) for your objection to the Settlement. You may object to any of the terms in the settlement agreement, including but not limited to the proposed attorneys fees, Class Representative s Service Award, or settlement administrator s payment. A written Objection must be signed by you and include the name and case number of this Action, your full name and most current address, dates of your employment with Sedgwick, and last four digits of your Social Security number, or Employee ID number. The written Objection must be mailed to the Settlement Administrator (whose address is listed below) and must be postmarked no later than November 13, 2017. Late Objections will not be considered. If you wish, you may also appear at the Final Approval Hearing set for January 5, 2018 at 10:00 a.m. in Dept. 309 of the Los Angeles Superior Court, located at 600 S. Commonwealth Avenue, Los Angeles, California, 90005, and discuss your objections with the Court and the Parties. You are not required to provide advance notice of your intent to appear at The Final Approval Hearing. The Final Approval Hearing may be continued to another date without further notice. IF YOU OBJECT TO THE SETTLEMENT, YOU WILL STILL RECEIVE YOUR SHARE OF THE SETTLEMENT IF THE COURT APPROVES THE SETTLEMENT. Opting Out of the Settlement If you wish to be excluded from participating in the Settlement, you must mail a written Request for Exclusion to the Settlement Administrator at the address below, requesting to be excluded from the Settlement. To be considered valid, your Request for Exclusion must be signed by you, and contain your name, address, last four digits of your Social Security number or Employee ID number, your approximate dates of employment, and the following statement or a similar statement: I wish to exclude myself from the settlement in the matter of Salazar v. Sedgwick Claims Management Services, Inc. I understand that by excluding myself, I will not receive any money from the settlement in this matter. To be considered timely, your Request for Exclusion Form must be postmarked no later than November 13, 2017. Late Requests for Exclusion Forms will not be considered. If you timely mail a complete and valid Request for Exclusion, you will no longer be a member of the Settlement Class, and you will not be eligible to receive money under the Settlement or object to the terms of the Settlement. You will not be bound by the terms of the Settlement, and may pursue any valid claims you may have, at your own expense, against the Defendant. Effect of the Settlement on Your Rights If the proposed Settlement is approved by the Court, a Judgment will be entered by the Court as to the Class Action, which will essentially end the case. If the Settlement is approved and you do not exclude yourself from the Settlement, you will receive compensation and will fully and finally release and discharge Sedgwick Claims Management Services, Inc., and all of its present and former parents, subsidiaries, affiliates, and joint ventures, and all of their current and form shareholders, officers, directors, employees, agents, servants, registered representatives, attorneys, insurers, successors and assigns, and any other persons acting by through, under or in concert with any of them ( Releasees ) from all known and unknown claims, causes of action, rights, damages, punitive or statutory damages, penalties, liabilities, expenses, losses and issues of any kind or nature whatsoever, relating to the allegations and/or causes of action in the Action or that could have been brought in the Action based on the 5
allegations and/or causes of action alleged in the Action throughout the Settlement Period, at the time of final approval of the Settlement by the Court. The Released Claims include, without limitation, claims for wages (including, without limitation, overtime wages and meal and rest period premium pay), penalties, damages, restitution, attorney s fees, interest, and any other type of monetary recovery or injunctive relief arising out of a failure (a) to pay wages, including overtime wages and premium wages, (b) failure to provide meal periods, (c) failure to authorize and permit rest breaks, (d) failure to pay wages timely upon termination of employment, (e) failure to provide complete, accurate, itemized wage statements or maintain wage records in the manner required by the California Labor Code, and (f) unfair and unlawful business practices. The Released Claims include all claims for legal or equitable relief, for compensatory and statutory damages, penalties, restitution, injunctive relief, pre-judgment and post-judgment interest, and attorneys fees and costs of suit that arise from, or relate to, the facts and claims alleged in the Action. 9. How Will The Attorneys For The Class And Others Be Paid? The attorneys for the Class Representative and the Settlement Class will be paid from the Gross Fund Value of $2,500,000.00. The attorneys are seeking a fee of $833,333.00, as well as reimbursement of their litigation costs, not to exceed $35,000.00. Ms. Salazar is seeking a Service Award of $6,000.00 from the Gross Fund Value for her services as the Class Representative. The Settlement Administrator estimates that the cost of administration will be approximately $14,500.00. All of these amounts are to be deducted from the Gross Fund Value of $2,500,000.00. However, the employer s portion of the payroll taxes applicable to individual payments to Settlement Class Members will be paid by Sedgwick in addition to the Gross Fund Value. The remainder of the Gross Fund Value is the Net Fund Value and is available for distribution to Settlement Class Members. While the $2,500,000.00 Gross Fund Value is fixed, the actual amounts awarded to Class Counsel, Ms. Salazar and the Settlement Administrator, will be determined by the Court at the Final Approval Hearing. 10. Where Do I Find More Information? IF YOU NEED MORE INFORMATION OR HAVE ANY QUESTIONS You may contact Class Counsel, David Markham or Maggie Realin at 619-399-3995 or mrealin@markhamlaw.com, or call the Settlement Administrator at the telephone number listed below, toll free. Please refer to the Sedgwick Settlement Administrator. Sedgwick Settlement Administrator c/o CPT Group, Inc. 50 Corporate Park Irvine, CA 92606 1-833-529-0501 All documents submitted to the Court regarding this Settlement, including the operative complaint, may be accessed at www.cptgroup.com/sedgwicksettlement. If your address has changed, please contact the Settlement Administrator. DO NOT TELEPHONE THE COURT FOR LEGAL ADVICE OR FOR INFORMATION ABOUT THIS SETTLEMENT. By Order of the Los Angeles Superior Court, the Honorable Carolyn B. Kuhl 6