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Five Guys’ Proposed Settlement Undercuts Employees, Court Says

June 2, 2021, 2:30 PM

A proposed $1.2 million settlement between Five Guys and thousands of its California employees was again rejected by a federal district court that found the agreement sought too little money.

Jeremy R. Lusk alleged Five Guys Enterprises LLC violated California consumer reporting laws, wage and hour laws, and the state’s unfair competition law. The U.S. District Court for the Eastern District of California said it still had “considerable qualms” about how he undervalued his claims in his preliminary settlement motion.

The proposed settlement amount omitted civil penalties he sought under California’s Private Attorney General Act for allegedly violating compliance requirements ...

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