Amazon $3,000,000 Settlement for California Labor Code Violations

Amazon.com Services, Inc. has agreed to pay $3,000,000 to settle a class action lawsuit for alleged violations of the California Labor Code, including failure to properly calculate and pay overtime wages, failure to provide accurate wage statements, and failure to pay all wages due at the time of separation. This settlement aims to compensate affected employees for these alleged violations.

Who Benefits?: All current and former non-exempt employees of Amazon in California between July 22, 2017, and November 7, 2023, who received a Signing Bonus and/or On Sign Bonus in the same workweek they worked overtime, including double time.

How much can I get?: The estimated average payment to each Participating Settlement Member is approximately $565.43.

Important Dates

• Deadline to File a Claim: All Settlement Class Members will receive a payment under this Settlement unless they opt-out. The deadline to opt-out or object to the Settlement is June 17, 2024.
• Final Approval Hearing: September 10, 2024

Can I Claim an Award?

The Settlement covers the claims of a number of current and former employees of Amazon, referred to as the “Class Members” and collectively as the “Class.” Specifically, the Settlement Class includes all current and former non-exempt employees of Amazon in California during the Class Period who received a Signing Bonus and/or On Sign Bonus in the same workweek as they worked overtime, including double time. There are approximately 3,331 total Class Members.

If you are a Class Member as defined above, you are automatically a “Participating Settlement Class Member” unless you opt-out. Participating Settlement Class Members are entitled to a share of the “Net Settlement Amount” (NSA) and will be bound by the Settlement if it is approved by the Court. Individuals who opt-out will not be bound by the Settlement and will not be eligible to receive a payment.

What is the Award?

The payments to Participating Settlement Class Members (those who do not opt-out) will be calculated and apportioned on a pro-rata basis from the NSA to Participating Settlement Class Members who do not opt-out depending on the number of “weeks worked” or “workweeks” (defined as any calendar week during the Class Period) in which a Participating Settlement Class Member performed at least one day of work for Amazon.

Participating Settlement Class Members whose employment has ended will be credited an additional four (4) weeks worked for purposes of calculating their pro-rata share of the NSA. Participating Settlement Class Members do not need to submit a claim to participate and receive their Individual Settlement Payment.

The Parties estimate that the average payment to each Participating Settlement Member will be approximately $565.43. Defendants’ records indicate that you are a member of the Settlement Class. The records also indicate that you worked: (a) [See your mailed Notice] workweeks [and that you separated from employment with Defendants] during the Class Period. It is estimated that your Individual Settlement Payment will be $[See your mailed Notice]. It will not be possible to know the exact amount of your payment until the Response Deadline has passed and the Settlement Administrator knows the number of Participating Settlement Class Members.

Details of the Settlement

The proposed Settlement was agreed upon between Amazon and Class Counsel following extensive litigation, including formal discovery, informal information/data exchange, and months of negotiations. The Parties concluded, after taking into account the risks and costs attendant to further litigation and substantial benefits to be received pursuant to the Settlement, that the Settlement is fair, adequate, and in the best interest of the Class Members. The United States District Court, Eastern District of California, by and through the Honorable Barbara A. McAuliffe, approved the Settlement on a preliminary basis on March 22, 2024.

Amazon will pay $3,000,000 to settle this case (referred to as the “Gross Settlement Fund” or “GSF”). The GSF includes payments to Participating Settlement Class Members, the fees and costs of the Settlement Administrator, a service payment to Plaintiffs, and Class Counsel’s attorneys’ fees and costs, as well as a payment to the State of California.

The Parties have agreed to employ Atticus Class Action Administration to serve as Settlement Administrator. The Settlement Administrator’s fees and costs for administering the Settlement, estimated to be no more than $25,000, if approved by the Court, will be paid out of the GSF.

The Parties have allocated $100,000 of the GSF to any civil penalties that could be awarded pursuant to the California Labor Code Private Attorneys General Act (PAGA). Of that amount, $75,000 will be paid to the California Labor and Workforce Development Agency, and the remaining amount ($25,000) will be distributed to PAGA Settlement Members, regardless of whether they opt-out of the Settlement.

Plaintiffs have each been approved by the Court to serve as “Class Representative.” As Class Representatives, each Plaintiff is entitled to a payment for her services to the Class. The Parties have agreed, and the Court has preliminarily approved a payment of $10,000, or 0.33% of the GSF, to Plaintiff Kryzhanovskiy and $7,500, or 0.25% of the GSF, to Plaintiff Salzar for each’s respective service to the Class.

Class Counsel is entitled to attorney’s fees and costs for representing the Class Members. Class Counsel will request attorneys’ fees of one-third of the GSF, presently $1,000,000, to be split 90% to Mayall Hurley, P.C. and 10% to the Law Offices of Mark S. Adams and reimbursement of actual litigation costs of up to $30,000. Amazon does not object to Class Counsel’s request.

Separate and apart from the Class claims, Plaintiff Kryzhanovskiy also agreed to settle the Kryzhanovskiy Claims for a separate amount of $25,000. The resolution of those claims is not contingent on the Court approving the Class Settlement. Plaintiff Kryzhanovskiy has provided Amazon with a complete release broader than that impacting the Settlement Class, including a section 1542 waiver of her individual claims as well as all other claims, known or unknown which she may have against Amazon.

How to Claim Your Award

All Settlement Class Members will receive a payment under this Settlement unless they opt-out. If you are a Class Member and you move or change your address, and you want to receive your settlement benefits at your new address, you must send a notice of your change of address to the Settlement Administrator, Amazon.com Settlement, c/o Atticus Class Action Administration, PO Box 64053, St. Paul, MN 55164.

If you wish to exclude yourself from the Settlement, you must notify the Settlement Administrator in writing. Your opt-out must be postmarked or delivered to the Settlement Administrator no later than June 17, 2024, and must be signed, contain your full name, current home (or mailing) address, the last four digits of your Social Security number, and written affirmation of your desire to opt-out containing the following or substantially similar language: “I elect to opt-out of the Kryzhanovskiy/Salazar v. Amazon.com Services, Inc., et al. class action Settlement. I understand that by doing so, I will not be able to participate in the Settlement and will not receive a share of the Settlement proceeds.”

$3,000,000 Settlement Fund

Amazon has agreed to pay $3,000,000 to settle this case. The Gross Settlement Fund includes payments to Participating Settlement Class Members, the fees and costs of the Settlement Administrator, a service payment to Plaintiffs, and Class Counsel’s attorneys’ fees and costs, as well as a payment to the State of California.

The Net Settlement Amount (NSA) is expected to be at least $1,827,500. This amount will be distributed to Participating Settlement Class Members based on the number of workweeks they worked for Amazon between July 22, 2017, and November 7, 2023. Participating Settlement Class Members whose employment with Amazon ended will be credited with an additional four (4) workweeks for purposes of calculating their proportional Individual Settlement Payment.

Why is There a Class Action Settlement?

This class action settlement arises from allegations that Amazon failed to properly calculate and pay overtime wages, failed to provide accurate wage statements, and failed to pay all wages due at the time of separation for certain non-exempt employees who received Signing Bonuses and/or On Sign Bonuses. Although Amazon denies any liability or wrongdoing of any kind, they have agreed to the Settlement to avoid risks, costs, and disruption of business associated with protracted litigation.

The next steps include the Final Approval Hearing, which will be held on September 10, 2024, to determine whether the Settlement should be finally approved as fair, reasonable, and adequate. If the Court approves the Settlement, payments will be distributed to Participating Settlement Class Members.