$1.6M Settlement Reached in a class action against Vita-Mix

Vita-Mix Corp., as well as Kelly Services Inc., agreed to pay $1.6 million. The goal is settling the unpaid wages and overtime class action lawsuit. The plaintiffs who filed the lawsuit against the companies are Rainoldo Gooding and Nadeen Good.

In fact, it occurred in Jun 016. Gooding and Good accused the blender maker Vita-Mix and staffing agency Kelly Services Inc. of misclassifying them as being exempt from overtime. Thus, the suit claims the companies violated California labor law and federal labor laws as well.

According to the information provided by the plaintiffs, they used to work at demonstration boots, mainly in Costco wholesale stores across the country. They also added that these booths were set up during roadshows. Actually, the duration of roadshows may vary from four to 20 years. Vita-Mix, as well as Kelly Services Inc. failed to pay workers their wages per hour. Instead, the companies preferred to pay them on commission. In other words, they received a set amount of money per Vita-Mix product sold during every roadshow that employees worked. In addition to that, the suit alleges the company of violating the following laws: the Private Attorneys General Act (PAGA), the federal Fair Labor Standards Act (FLSA, as well as California labor laws.


Settlement details

Thus, court documents note Vita-Mix and Kelly Services Inc. made a decision of settling the lawsuit. So, the companies will pay a non-reversionary $1.6 million. This means that every class member will get averagely $952.17. So, workers recommend approval. The reason is that they mention the average recovery is ‘’far exceeding’’ the average recoveries in other similar class actions. Further, they point out the current settlement offers a considerable recovery concerning the companies’ wage and hour violations.

Here is what the plaintiffs Gooding and Good seek:  unpaid minimum and overtime wages under the FLSA, damages for those wages, waiting time penalties under California law, as well as civil penalties under the PAGA. This also includes damages for meal and rest period violations, also damages for deductions done in an unlawful manner and inaccurate wage statements.

In case of approval, the amount of $1.095 million will be divided between 1150 class members taking into consideration the number of weeks that class members worked during class periods.

Additionally, the lawsuit is also seeking to divide class members into three classes. It refers to those class members who worked for the defendants from June 3, 2012 to March 13, 2017. These classes are: a California class, a non-California class and a nationwide FLSA class. Workers also noted that the FLSA class members will have to opt in to the settlement.


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