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Individuals who worked as a tutor providing services through Cambly’s platform in California between Nov. 9, 2020, and May 26, 2022, may be eligible to claim a cash payment from a class action settlement.
Cambly Inc. agreed to pay $393,000 to settle a class action lawsuit alleging it misclassified California-based tutors as independent contractors and violated state labor laws, including those related to wage payments, expense reimbursement and required breaks. The settlement resolves claims brought under the California Labor Code, the state’s unfair competition law and the Private Attorneys General Act.
Who are the class members?
The settlement class includes all current and former individuals who provided tutoring services through Cambly’s platform in California at any time from Nov. 9, 2020, to May 26, 2022.
The settlement also covers “PAGA members,” defined as all individuals who provided services through Cambly in California during the same period. PAGA members cannot opt out of this portion.
How much can class members get?
The total settlement fund is $393,000. After deductions for attorneys’ fees, service awards, administration costs and PAGA penalties, the settlement administrator will distribute approximately $230,810 to class members.
Each class member’s payment is based on the total classroom minutes they taught through Cambly during the class period.
No class member will receive less than $25. After the initial distribution, the settlement administrator will redistribute any unclaimed funds to class members whose second payment would exceed $50. Additionally, the administrator will distribute 25% of the PAGA penalty ($7,500) on a pro rata basis to tutors based on their classroom minutes.
No action needed to receive a class action payment
Class members do not need to submit a claim form to receive their payment. If Cambly’s records identify them as a class member, they will automatically receive their share of the settlement unless they choose to opt out.
If a class member wishes to opt out of the settlement, they must mail or email a written request for exclusion to the settlement administrator by May 4, 2026. The settlement notice class members received includes Instructions for opting out.
If a class member disagrees with Cambly’s record of their classroom minutes, they may submit documentation to the administrator within 60 days of receiving their notice to dispute the calculation.
Settlement administrator’s mailing address: Waldrep v. Cambly, c/o Settlement Administrator, P.O. Box 26170, Santa Ana, CA 92799
Payout options
The default payment is PayPal. The settlement administrator will use the account on file with Cambly to distribute payments. However, class members can submit a payment election form to select other digital payment services or a mailed check.
$393,000 settlement fund breakdown
The $393,000 settlement fund includes:
- Settlement administration costs: Up to $14,000
- Attorneys’ fees and costs: Up to $131,000
- Service award to class representative: Up to $10,000
- PAGA penalties: $22,500 to the state of California and $7,500 to tutors
- Payments to eligible class members: Approximately $230,810
No portion of the settlement will revert to Cambly. The settlement administrator will distribute any remaining funds after the second distribution to the California Controller’s Unclaimed Property Fund.
Important dates
- Opt-out deadline: May 4, 2026
- Dispute deadline: May 4, 2026
- Final approval hearing: May 22, 2026
When is the Cambly settlement payout date?
The settlement administrator will distribute payment to class members after the court grants final approval of the settlement.
Why is there a class action settlement?
The class action lawsuit alleged Cambly misclassified California-based tutors as independent contractors rather than employees. The plaintiff claimed this misclassification led to violations of California labor laws, including failures to reimburse business expenses, pay minimum wage and overtime, provide meal and rest breaks and issue proper wage statements.
Cambly denied all allegations but agreed to settle to avoid the risks and costs of continued litigation.
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