FREQUENTLY ASKED QUESTIONS

WHAT IS THIS LAWSUIT ABOUT?

This case is called Rubin-Knudsen, et al. v. Arthur J. Gallagher & Co., et al. (United States District Court, Central District of California, Case No. February). This case was brought on behalf of all current and former employees of Gallagher in the State of California who were employed as an “exempt” employee in any of the following positions at any time between July 18, 2014, and  November 24, 2020: Client Service Manager, Client Service Manager Senior, Client Service Manager II, and Client Service Manager III (collectively, a “Client Service Manager Position”). These individuals are referred to as “Class Members.”

Plaintiffs Pamela Rubin-Knudsen and Marnine Casillas (“Plaintiffs”) contend, among other things, that Gallagher misclassified Client Service Manager Positions as exempt from overtime and failed to: pay for all hours worked, pay overtime wages, provide meal periods and pay meal break premiums, timely pay for all wages earned, furnish accurate itemized wage statements, and pay all wages due both during and upon the termination of employment. Plaintiffs also contend that Gallagher violated California’s unfair competition law and the California Private Attorneys General Act (“PAGA”).

Gallagher denies all liability for these claims and contends that its employment practices have complied with applicable laws at all times. Gallagher has asserted a number of factual and legal defenses to Plaintiffs’ claims. Nonetheless, without admitting any liability and in the interest of resolving this dispute, Plaintiffs and Gallagher have agreed to the settlement described below.

The Court has made no ruling on the merits of Plaintiffs’ claims or Gallagher’s defenses. However, the Court has preliminarily approved the proposed settlement. The Court will decide whether to give final approval to the settlement at a hearing scheduled for March 15, 2020, at 9:00 a.m. in Courtroom 1 of the United States District Court for the Central District of California, located at 3470 Twelfth Street, Riverside, California 92501. This date and time may be subject to change without notice to you.

 

BENEFITS OF THE SETTLEMENT – WHAT YOU MAY GET

Under the terms of the settlement, Gallagher has agreed to fund a settlement in the amount of $8,000,000.00.

You will be issued a share of the settlement after costs and fees are deducted (“Individual Settlement Share”) unless you opt-out of the settlement before the deadline. “Participating Class Members” means all Class Members who do not submit a valid letter requesting to be excluded from the Settlement (i.e., opt-out). The amount allocated to each Participating Class Member will be distributed on an individual basis as a fraction of the settlement distribution:

“Qualifying Workweeks” for individual Class Member / Total “Qualifying Workweeks” for all Class Members

“Qualifying Workweeks” means the number of weeks a Class Member was employed by, and performed work for, Gallagher in California in an exempt-classified Client Service Manager Position at any time from July 18, 2014 to November 24, 2020 (the “Class Period”). Each Qualifying Workweek runs from Sunday to Saturday.

One-third of each Individual Settlement Share shall be allocated as wages and two-thirds as penalties and interest. All employee’s share of withholdings and taxes associated with the wage portion of the Individual Settlement Shares will be deducted.

In order to ensure receipt of your payment, it is your responsibility to make sure you keep the Settlement Administrator informed of your current mailing address, and you may do so by contacting the Settlement Administrator by email or mail at the addresses listed above or by calling its phone number listed in this Notice.

WHAT YOU RELEASE AS PART OF THIS SETTLEMENT

Upon the Final Approval by the Court of this Settlement Agreement and payment of amounts set forth herein, and except as to such rights or claims as may be created by this Settlement Agreement, each and every Participating Class Member, on behalf of themselves and their heirs and assigns, hereby releases Defendants Arthur J. Gallagher & Co. and Arthur J. Gallagher Service Company, LLC, including their current or former parent, subsidiary, or affiliate entities, and each of their owners, officers, directors, members, managers, employees, attorneys, insurers, assigns, shareholders, successors, predecessors, and agents (collectively the “Released Parties”) from the following rights or claims (the “Released Class Claims”):

Any and all claims that are or could have been alleged in the Complaint, and any amendments thereto, based on and/or related to the factual allegations contained therein. This includes all claims for failing to pay overtime wages because of misclassification (including claims under state law and under the Fair Labor Standards Act), failing to provide meal and rest periods and failing to pay related premiums/penalties, failing to furnish accurate itemized wage statements, and waiting time penalties. This covers all claims for unpaid wages or compensation, premium payments, liquidated damages, restitution (including for unfair competition), penalties, attorneys’ fees or costs, and/or any other damages or amounts related to any or all of the foregoing. The release includes any and all claims that were or could have been asserted based on or related to the facts and/or allegations in any complaint filed in this action.

Class Members who do opt-out of the settlement will still release all rights to sue Gallagher and/or recover civil penalties under the PAGA (i.e., the California Private Attorney General Act). Upon the Final Approval by the Court of this Settlement Agreement and payment of amounts set forth herein, and except as to such rights or claims as may be created by this Settlement Agreement, each and every PAGA Representative Class Member, on behalf of themselves and their heirs and assigns, and irrespective of whether the PAGA Representative Class Member opted out of the class action portion of this Settlement, hereby releases the Released Parties from the following rights or claims (the “Released PAGA Claims”):

Any and all claims for civil penalties under California Labor Code section 2698 et seq. (“PAGA”) that are or could have been alleged in the Complaint, and any amendments thereto, based on and/or related to the factual allegations contained therein, including California Labor Code sections 201, 202, 203, 204, 226, 226.7, 510, 512, 1194, and 1198. This includes all claims under PAGA for failing to pay overtime wages because of misclassification, failing to provide meal and rest periods and failing to pay related premiums/penalties, failing to furnish accurate itemized wage statements, and waiting time penalties. This covers all claims under PAGA for unpaid wages or compensation, premium payments, liquidated damages, restitution (including for unfair competition), penalties, attorneys’ fees or costs, and/or any other damages or amounts related to any or all of the foregoing. The release includes any and all claims under PAGA that were or could have been asserted based on or related to the facts and/or allegations in any complaint filed in this action.

Regardless of whether or not you opt-out, your claims against Gallagher under the PAGA will be released.

The Released Claims and Released PAGA Claims shall include all the above claims for the period ending on November 24, 2020.

 

NOTICE OF HEARING IN THIS CASE

The Court has allowed Plaintiffs Pamela Rubin-Knudsen and Marnine Casillas to represent the Class Members and has given preliminary approval to a proposed settlement. A final hearing to consider the fairness of the proposed settlement is scheduled for March 15, 2021, at 9:00 a.m. at the following location:

United States District Court for the Central District of California
Courtroom 1
3470 Twelfth Street
Riverside, California 92501

You are not required to attend the final hearing. The hearing may be continued or adjourned without further notice to the Class Members.

 

ATTORNEYS’ FEES AND COSTS, ADMINISTRATION COSTS, CLASS REPRESENTATIVES; ENHANCEMENT PAYMENTS AND PAGA PAYMENT 

Under the terms of the settlement, Plaintiffs’ attorneys, Frank Sims & Stolper LLP, will submit a request to the Court for up to $2,666,667.00 in attorneys’ fees and up to $150,000.00 to reimburse their costs spent in pursuit of this lawsuit.

The Settlement Administrator, Atticus Administration, LLC, will seek a payment of up to $15,000.00 to cover all costs and fees to administer the settlement. Plaintiffs will request a Class Representative Enhancement payment of up to $25,000.00, consisting of up to $15,000.00 to Plaintiff Rubin-Knudsen and up to $10,000.00 to Plaintiff Casillas, for Plaintiffs’ time and effort in assisting in the litigation and settlement and for releasing all of their individual claims against Gallagher.

$10,000.00 of the settlement amount shall be designated for satisfaction of Plaintiffs and Class Members’ claims pursuant to the PAGA. Pursuant to the PAGA, 75 percent, or $7,500.00, of this amount shall be paid to the LWDA, and 25 percent, or $2,500.00 shall be evenly distributed to Class Members on a per capita basis.

All amounts requested for fees, costs, enhancements, payments and releases are subject to Court approval at the final approval hearing.

 

MORE INFORMATION ABOUT YOUR OPTIONS AND LEGAL RIGHTS

1. Do Nothing.

If you do nothing, you will be deemed part of the Class and you will be issued a money payment from the proposed settlement. This means that you accept the Court’s decisions in this case relating to the Class, and that you cannot bring a separate lawsuit against Gallagher for the claims released, even if you do not cash, deposit, or otherwise negotiate your settlement check. You do not have to pay for the lawyers who have represented the Class in this case so far.

2. Object.

If you are a Class Member who does not opt-out of the settlement, you may write to the Court to say why you do not agree with the proposed settlement.

Your objection must include:

• The name of this case (Rubin-Knudsen, et al. v. Arthur J. Gallagher & Co., et al., (United States District Court, Central District of California, Case No. 2:18-cv-06227-JGB-SP);
• Your name;
• Your current address;
• Your telephone number;
• Your dates of employment with Gallagher;
• The last four digits of your Social Security number;
• A written statement of the basis of the objection, including the reasons why you believe that the Court should find that the proposed settlement is not in the best interests of the Class and the reasons why the settlement should not be approved; and
• Your signature or signature of your counsel, if any.

Your objection must be filed with the Court by February 1, 2021. You may submit your objection by mailing it to the Court at:

Clerk, United States District Court for the Central District of California
Courtroom 1
3470 Twelfth Street
Riverside, California 92501.

You also must email or mail a copy of your objection to all of the attorneys listed below by February 1, 2021:

Attorneys for the Class (“Class Counsel”):
FRANK SIMS STOLPER, LLP
Jason M. Frank
Scott H. Sims
jfrank@lawfss.com
ssims@lawfss.com
19800 MacArthur Blvd., Suite 855
Irvine, CA 92612

Attorneys for Defendants (“Defendants’ Counsel”):
WINSTON & STRAWN LLP
Joan B. Tucker Fife
Caitlin W. Tran
jfife@winston.com
cwtran@winston.com
101 California Street, 35th Floor
San Francisco, CA 94111

If you object, you remain a member of the Class and remain eligible to receive a settlement payment if final approval is granted. Class Members shall be permitted to withdraw their objections in writing by submitting a withdrawal statement to the Settlement Administrator by email or postmarked mail not later than one (1) business day before the Court’s final approval hearing, orally at the final approval hearing, or as otherwise ordered by the Court. A Class Member who does not mail or email a written objection in the manner and by the deadline specified above will be deemed to have waived any objection and will be foreclosed from making any objections to the settlement (whether by appeal or otherwise). A Class Member who files and serves a timely notice of objection will have a right to appear at the final approval hearing to have his or her objections heard by the Court.

3. Do nothing but get your own lawyer.

If you want to participate in the proposed settlement and stay in the class action but prefer to have your own attorney, you are free to do so. You will, however, have to pay your lawyer’s fees and costs.

4. Opt-out.

If you do not want to remain a member of the Class, you can request exclusion from the Class (i.e., opt out). You can opt-out of the Class by emailing or mailing a written and signed request for exclusion to the Settlement Administrator. It must be sent by email or postmarked mail no later than February 1, 2021. This request for exclusion must contain the following information: (a) your printed full name (and any other names used while employed by Gallagher), (b) your full address, and (c) the following language: “I wish to opt-out of the class action settlement of the lawsuit Rubin-Knudsen, et al. v. Arthur J. Gallagher & Co., et al., United States District Court for the Central District of California, Case No. 2:18-cv-06227-JGB-SP. I understand that by requesting exclusion, I will not be eligible to receive any payment or other benefit for Class Members from the class action settlement involving Arthur J. Gallagher & Co. and Arthur J. Gallagher Service Company, LLC.” This request must be signed by you.

If you opt-out of the settlement, you will not be a Participating Class Member, you will be barred from participating in this settlement, and you will receive no money or benefit from the class action settlement. However, you will still receive a settlement check for any claims under the PAGA and release all claims under the PAGA against Gallagher as set forth above. By opting out of the Class, you will retain whatever rights or claims you may have, if any, against Gallagher, and you will be free to pursue such claims on an individual basis, if you choose to do so, with the exception of any claims under the PAGA.

Your request for exclusion should be emailed or mailed to:

CSM Settlement Administrator
c/o Atticus Administration
PO Box 64053
St. Paul, MN 55164
csmsettlement@atticusadmin.com
1-800-203-5188

You may rescind your opt-out statements in writing by submitting a rescission statement to the Settlement Administrator by email or postmarked mail no later than one (1) business day before the Court’s final approval hearing, orally at the final approval hearing, or as otherwise ordered by the Court.

 

TO LEARN MORE ABOUT THIS CASE

Contact Class Counsel:

FRANK SIMS STOLPER, LLP
Jason M. Frank
Scott H. Sims
jfrank@lawfss.com
ssims@lawfss.com
19800 MacArthur Blvd., Suite 855
Irvine, CA 92612

You also may inspect the court files in person at The Clerk’s Office, located at 3470 Twelfth Street, Room 134, Riverside, California 92501, between the hours of 9:00 a.m. and 4:00 p.m., Monday through Friday, with the exception of court-observed holidays.

PLEASE DO NOT CALL OR WRITE THE COURT, GALLAGHER, OR ITS ATTORNEYS WITH QUESTIONS ABOUT THIS SETTLEMENT OR THE ADMINISTRATION PROCESS.

BY ORDER OF THE UNITED STATES DISTRICT COURT FOR THE CENTRAL DISTRICT OF CALIFORNIA.