Case: Wage & Hour/Settlement Agreement (E.D. Cal.)

A California federal district court denied an occupational therapist’s motion for preliminary approval of a class action settlement agreement of $400,000, with an additional $50,000 for an individual settlement, against her former employers Encompass Health Rehabilitation Hospital of Modesto LLC and Encompass Health Corporation for alleged state labor code violations. The class action representatives weren’t adequately represented in the process because the class action arose from the individual retaliation case started by the occupational therapist two years earlier and it’s unclear whether the settlement amount falls within the approval range, the court found. Further, the court found the proposed settlement ...