Red Oak Sanitation $1.4M Labor Class Action Settlement

Day-rate Red Oak Sanitation employees who worked as nonexempt drivers or helpers between Oct. 2, 2021, and Jan. 31, 2025, may qualify to claim a payment from a class action settlement.

Red Oak Sanitation LLC agreed to pay $1,407,652.26 to settle a class action lawsuit alleging violations of the Fair Labor Standards Act. The lawsuit claimed the company did not properly pay overtime to day-rate drivers and helpers.

Who can file a Red Oak claim?

Class members must meet the following criteria:

• Red Oak Sanitation LLC employed them as nonexempt drivers or helpers.
• The company paid them under a day-rate pay plan.
• They worked for Red Oak Sanitation at any time between Oct. 2, 2021, and Jan. 31, 2025.

How much can class members get?

The total settlement fund is $1,407,652.26. The amount each class member receives depends on the number of workweeks they worked as a nonexempt driver or helper under the day-rate pay plan during the covered period.

The settlement uses a point system based on the total number of workweeks all class members worked. Each eligible workweek is assigned a point, and the total fund is divided by the total number of points to determine a per-week value. Each class member’s payment is then calculated by multiplying the per-week value by the number of eligible workweeks they worked.

The actual per-week value may differ and is specified in the notice sent to each class member.

50% of each payment is treated as wages and reported on IRS Form W-2, and 50% percent is treated as liquidated damages and reported on IRS Form 1099.

How to claim a class action payment

Class members can file the online claim form or download, print, complete and mail the PDF claim form (Page 40 of the settlement agreement) to the settlement administrator. The claim deadline is Sept. 27, 2025.

Settlement administrator's mailing address: Craig v Red Oak Sanitation c/o Settlement Administrator, P.O. Box 26170 Santa Ana, CA 92799

Is proof or documentation required to submit a claim?

To file an online claim, class members must provide the unique ID and PIN located on the notice they received. Those who are unable to locate their ID and PIN should contact the settlement administrator at info@RedOakSettlement.com or 888-369-3780 and provide their full name and mailing address.

Payout options

• Paper check

$1.41 million settlement fund breakdown

The $1,407,652.26 settlement fund covers:

• Settlement administration costs: To be determined
• Attorneys’ fees: $560,000
• Attorneys' expenses: $5,580
• General release payment to the named plaintiff: $15,000
• Payments to eligible class members: The remainder of the fund

Important dates

• Deadline to file a claim: Sept. 27, 2025

When is the Red Oak Sanitation settlement payout date?

The settlement administrator will issue payments after Oct. 27, 2025.

Why is there a class action settlement?

The class action lawsuit alleged Red Oak Sanitation failed to properly pay overtime to drivers and helpers paid on a day-rate basis in violation of the Fair Labor Standards Act.

The company denied any wrongdoing but agreed to settle to avoid the expense and uncertainty of further litigation.

Sources

1. Settlement agreement
2. Settlement FAQ