Earthgrains Distribution $17.5M California IBP Settlement

Individuals who worked as an independent business partner who contracted with Earthgrains Distribution LLC or its predecessors, subsidiaries or affiliates for sales, purchasing or selling in California between June 27, 2018, and Feb. 28, 2026, may be eligible to claim a cash payment from a class action settlement.

Earthgrains Distribution LLC and Bimbo Bakeries USA Inc. agreed to pay $17.5 million to settle a class action lawsuit alleging they violated California wage-and-hour laws. The claims include failure to reimburse business expenses, unlawful deductions from wages, inaccurate wage statements, unpaid overtime, missed meal and rest breaks, and other related issues.

Who are the class members?

Class members must meet all of the following criteria:

• They contracted as independent business partners with Earthgrains Distribution LLC or any of its predecessors, subsidiaries or affiliates.
• They performed sales in sales areas in California, purchased product in California or sold to customers in California at any time between June 27, 2018, and Feb. 28, 2026.

There are two main groups within the class:

• Class members: All current and former IBPs during the class period
• Private Attorneys General Act members: Those who contracted with Earthgrains or its affiliates between May 18, 2021, and Feb. 28, 2026, and are eligible for a separate PAGA penalty payment

The settlement administrator will identify class members based on company records. Those who received a notice are likely included.

Current IBPs as of Feb. 28, 2026, must sign an arbitration agreement to receive a class settlement payment, while former IBPs do not need to take any action and will automatically receive a settlement payment.

How much can class members receive?

The total settlement fund is $17,500,000. After deductions for attorneys' fees and costs, service awards to class representatives, administration costs and PAGA penalties, the settlement administrator will distribute the remaining amount to eligible class members.

Each participating class member receives a payment made up of:

• A minimum payment: 15% of the net settlement amount divided equally among all participating class members
• A pro rata share: 85% of the net settlement amount divided based on the number of eligible workweeks each class member contracted during the class period

How to receive a settlement payout

• Former IBPs: No action required. The settlement administrator will mail payments automatically after final approval.
• Current IBPs as of Feb. 28, 2026: Must sign an online arbitration agreement within 45 days of notice.

Class members whose address has changed should update it with the settlement administrator to ensure they receive payment.

Additionally, class members who believe their eligible workweeks or pay periods are incorrect may send a letter with supporting documents to the settlement administrator.

Settlement administrator's mailing address: Munoz v. Earthgrains Distribution LLC, c/o CPT Group Inc., PO Box 19504, Irvine, CA 92623

Required information

To submit an online arbitration agreement, class members must provide the CPT ID and passcode from the settlement notice they received.

Payout options

The settlement administrator will mail checks to the last known address on file. If class members do not cash their check within 180 days, the administrator will send the funds to the California Unclaimed Property Fund.

$17.5 million settlement fund breakdown

The $17,500,000 settlement fund will cover:

• Settlement administration costs: Estimated $16,000
• Attorneys' fees: Up to $5,833,333.33
• Attorneys' costs: Up to $45,000
• Service awards to class representatives: $15,000 each to four plaintiffs ($60,000 total)
• PAGA penalties: $350,000 ($262,500 to the state and $87,500 to PAGA members)
• Reserve fund: $200,000 for late-identified class members
• Payments to class members: The remaining net settlement amount (estimated $11,295,666.67)

Important dates

• Deadline to opt out: Sept. 28, 2026
• Deadline to submit arbitration agreement form: Sept. 28, 2026
• Final fairness approval hearing: Nov. 12, 2026

When is the Munoz v. Earthgrains Distribution LLC payout date?

The settlement administrator will mail payments after the court resolves any claims and grants final approval of the settlement.

Why did this class action settlement happen?

The class action lawsuit alleged Earthgrains Distribution LLC and Bimbo Bakeries USA Inc. failed to reimburse business expenses, made unlawful wage deductions, did not provide accurate wage statements, failed to pay overtime and did not provide required meal and rest breaks, among other violations of California labor laws.

The companies deny all wrongdoing but agreed to settle to avoid further litigation and the risks of trial.

Sources

1. Class notice
2. Settlement agreement
3. Important dates