Frequently Asked Questions

BASIC INFORMATION

1. Who is included?

Class Members are a member of one or more of the following Classes: “Unpaid Wage Class,” “Wage Statement Class,” and/or “Expense Reimbursement Class” and therefore entitled to a payment from this proposed class action Settlement. Each Class is defined as follows:

“Unpaid Wages Class” or “Unpaid Wage Class Members” refers to all part-time adjunct instructors employed by the University of San Francisco at any time during the Class Period (January 4, 2017 through to September 8, 2020), who in 2017 earned less than $3,640.00 in any calendar month in which the instructor was paid wages; who in 2018 earned less than $3,813.33 in any calendar month in which the instructor was paid wages; who in 2019 earned less than $4,160 in any calendar month in which the instructor was paid wages; or who in 2020 earned less than $4,506.67 in any calendar month in which the instructor was paid wages. Unpaid Wage Class Members employed between September 1 and 8, 2020 will be considered to be part of this class if their earnings for the entire month of September 2020 were less than $4,506.67.

“Wage Statement Class” or “Wage Statement Class Members” or refers to (a) all part-time adjunct instructors employed by the University of San Francisco during the Wage Statement Class Period (January 4, 2020 through to September 8, 2020) who earned less than $4,506.67 in any calendar month in which the instructor was paid wages; and (b) all part-time adjunct instructors who fell within the definition of the certified class in Gola v. University of San Francisco, Case No. CGC-18-565018 (San Francisco Cnty. Super. Ct.) and were omitted from the class list in that case.

“Expense Reimbursement Class” or “Expense Reimbursement Class Members” refers to all current and former employees of the University of San Francisco who worked remotely in California at any time from March 11, 2020, through July 31, 2021.

2. What is a Class Action and What is PAGA?

In a class action, one or more people called Class Representatives make allegations on behalf of other people whom they allege have similar claims. All these people comprise a Class or Classes and are referred to as Class Members, except those who decide to exclude themselves from the Class. One court resolves the issues for all Class Members.

The Labor Code Private Attorneys General Act (“PAGA”) allows an employee aggrieved by a Labor Code violation to file a “representative” lawsuit against the employer to recover civil penalties on behalf of himself, other employees, and the State of California. A PAGA claim can be asserted in a Class action. Employees on whose behalf a PAGA claim or lawsuit is brought are referred to as Aggrieved Employees.

If a settlement is entered into in a Class and PAGA lawsuit, the Court must approve the terms of the settlement as fair and reasonable to the members of the Class and the State. Once finally approved, the settlement will affect all Class Members except those who choose to opt out. Aggrieved Employees, however, do not have the right to opt out of the PAGA portion of the settlement.

3. What is this Class Action and Settlement about?

This action was filed against Defendant University of San Francisco, Inc. on January 5, 2021, by Plaintiffs Dan Beck and Bienvenida Salazar (collectively, “Plaintiffs”). The operative Complaint, which is the Third Amended Complaint (the “Complaint”), filed on September 14, 2023, asserts claims against Defendant for alleged (1) failure to pay overtime wages, and failure to provide off-duty meal and rest breaks to Unpaid Wage Class Members ("Overtime, Meal, Rest Break Claims”), (2) failure to provide accurate wage statements to Wage Statement Class Members (“Wage Statement Claims”), (3) failure to reimburse home office expenses to Expense Reimbursement Class Members (“Expense Reimbursement Claim”), (4) violation of the Unfair Competition Law, Bus. & Prof. Code § 17200, and (5) civil penalties pursuant to the Labor Code Private Attorneys General Act of 2004 (“PAGA”).

In the Overtime, Meal, Rest Break Claims and Wage Statement Claim, the Complaint alleges that Defendant misclassified part-time adjunct instructors as exempt because they did not meet the minimum monthly salary threshold required for the professional exemption. The minimum monthly salary threshold required for the professional exemption during the relevant period (January 4, 2017, through September 8, 2020) is as follows: $3,640.00/month in year 2017; $3,813.33/month in year 2018; $4,160/month in year 2019; and $4,506.67/month in year 2020 (“Minimum Salary Threshold”). The Complaint alleges that, as a result of this misclassification, Defendant failed to pay Unpaid Wage Class Members for overtime hours worked, and failed to provide them with off-duty meal and rest breaks.

In the Wage Statement Claim, the Complaint alleges that as a result of misclassifying part-time adjunct instructors as exempt, Defendant failed to include on the wage statements it issued to the part-time adjunct instructors certain required information including total hours worked and applicable hourly rate(s). The same claim was made by the plaintiff in an earlier-filed action Gola v. University of San Francisco, in which the trial court awarded judgment to the certified class of part-time adjunct instructors employed by the University of San Francisco from March 15, 2017, through to January 3, 2020. At the time of trial in that case, it was discovered that approximately 285 members of the certified class were left off the class list. These individuals are members of the Wage Statement Class in this case.

In the Expense Reimbursement Claim, the Complaint alleges that employees were not reimbursed for all business expenses incurred in connection with working from home as a result of the COVID-19 pandemic.

The civil penalties sought under PAGA are based on these same theories of liability.

The proposed Settlement is not an admission of liability by Defendant. Throughout the course of litigation in the Action, Defendant has denied any liability or wrongdoing, or that any compensable injury arose out of any of the matters alleged in the Action. Defendant contends that it has complied with all applicable laws and regulations regarding all of those matters.

Class Counsel believes that the proposed Settlement is in the best interests of the Class Members. Further proceedings would be very expensive and take a long time. Moreover, no one can predict the precise outcome of the disputed issues in this case. Therefore, Class Counsel believes that the proposed Settlement is fair, reasonable, and adequate for the Class Members.

4. Summary of the Settlement Terms

Defendant has agreed to pay $3,888,888 (“Gross Settlement Amount”) to settle this case. The Gross Settlement includes: (1) costs of settlement administration up to $35,000; (2) employer-side payroll taxes due on the portion of the settlement attributed to wages (estimated at $20,000); (3) service payments of up to $7,500 to each Plaintiff for their time and efforts in pursuing this case and in exchange for a general release of claims against Released Parties they will agree to as part of this Settlement; (4) fees of up to 1/3 of the Settlement Amount ($1,296,296) and up to $60,000.00 in litigation costs to Class Counsel; and (5) payment allocated to PAGA penalties in the amount of $100,000 of which 75% will be paid to the California Labor and Workforce Development Agency (“LWDA”) and 25% shall be paid proportionately to the Unpaid Wage Class Members who worked during the Adjunct PAGA Period (defined as January 4, 2020 to September 8, 2020) and to the Expense Reimbursement Aggrieved Employees who worked during the Expense Reimbursement PAGA Period (defined as March 11, 2020 through January 25, 2024). After deducting these sums from the Gross Settlement Amount, a total of approximately $2,362,592 (i.e., the Net Settlement Amount) will be available for distribution to the Class Members.

5. Distribution to Class Members

Participating Class Members (Class Members who do not exclude themselves from the Settlement) will each be paid an Individual Class Payment from the Net Settlement Amount. The Net Settlement Amount (“NSA”) will be distributed as follows:

• 65% of the NSA (approximately $1,535,684.80) shall be allocated to the Unpaid Wage Class Members and paid on a pro-rata basis based on the number of Qualifying Months worked by an Unpaid Wage Class Member during the Unpaid Wages Class Period (January 4, 2017, through September 8, 2020). Qualifying Months for purposes of this distribution to the Unpaid Wage Class Members are those months during which Unpaid Wage Class Members’ earnings were below the Minimum Salary Threshold. In calculating the Qualifying Months, a 2.5 multiplier shall be applied to the work months of those members of the Unpaid Wage Class who are Nursing Part-time Adjunct Instructors. “Nursing Part-time Adjunct Instructors” refers to Unpaid Wages Class Members who taught courses in the University of San Francisco School of Nursing and Health Professions.
• 15% of the NSA (approximately $354,388.80) shall be allocated to the Wage Statement Class Members and paid on a pro-rata basis based on the number of Qualifying Work Months worked by a Wage Statement Class Member during (a) the Wage Statement Class Period (January 4, 2020 through September 8, 2020), and (b) the certified class period in Gola v. University of San Francisco (March 15, 2017 to January 3, 2020) if the Wage Statement Class Members is one of the 285 individuals who were omitted from the class list in the Gola action. Qualifying Work Months for purposes of this distribution to the Wage Statement Class Members are those months during which Wage Statement Class Members’ earnings were below the Minimum Salary Threshold.
• 20% of the NSA (approximately $472,518.40) shall be allocated to the Reimbursement Class Members and paid on a pro-rata basis based on the number of Work Month worked by the Expense Reimbursement Class Member during the Expense Reimbursement Class Period (March 11, 2020, through January 25, 2024). In calculating the Work Months, a 4.0 multiplier shall be applied to the work months before August 1, 2021. No multiplier shall be applied to work months worked in and after August 2021. Amounts previously reimbursed to any Reimbursement Class Member by USF for remote work expenses shall offset the settlement awards to such Reimbursement Class Members who received such reimbursements, however, each Reimbursement Class Member shall receive a minimum of $50 as their share of the 20% of the NSA allocated to the Expense Reimbursement Class.

6. Estimated Settlement Awards

Your estimated settlement award is provided in the Notice of Class Action Settlement which was mailed and/or emailed to you on August 16, 2024. The notice of Settlement mailed to you also indicated the number of work months that your award is based on.

7. Tax Reporting

For tax reporting purposes, payments made to the Unpaid Wage Class Members for the release and settlement of the claims of the Unpaid Wage Class will be allocated 1/3 to wages subject to withholdings, which will be reported on IRS W 2 Form, and 2/3 to interest and penalties, which will be reported on IRS 1099 Forms. Payments made to Participating Class Members for the release and settlement of claim of the Wage Statement Class will be considered 100% penalties and will be reported on IRS 1099 Forms. Payments made to Participating Class Members for the release and settlement of the claims of the Expense Reimbursement Class will be considered 100% non-wage income and interest and will be reported on IRS 1099 Forms. The PAGA payment paid to the Adjunct Aggrieved Employees and to the Reimbursement Aggrieved Employees will be reported on IRS 1099 Forms.

8. Claims Released Under the Settlement

Unpaid Wage Class Released Claims: Unpaid Wages Class Member shall be deemed to have released Released Parties from claims related to the allegations of Defendant’s misclassification of part-time (adjunct) instructors as exempt or non-piece employees, and to the allegations of Defendant’s failure to pay overtime pay, provide compliant meal and rest periods, and premium pay relating to meal and rest periods (“Unpaid Wage Claims”), including restitution or penalties for failure to pay such wages, which are alleged, or could have been alleged, based on the facts relating to the Unpaid Wage Claims in the operative Complaint or in a prior complaint, under any applicable legal provisions, including Labor Code §§ 1194, 1194.2, 226.2, 226.7, 510, 512, Wage Order No. 4-2001 of the Industrial Welfare Commission, or under Wage Order No. 5-2001 of the Industrial Welfare Commission, Bus. & Prof. Code, § 17200, and PAGA civil penalties based on those claims.

Wage Statement Class Released Claims: Each Wage Statement Class Member shall be deemed to have released Released Parties from claims related to the allegations of Defendant’s misclassification of part-time (adjunct) instructors as exempt and/or non-piece rate employees, and to the allegations of Defendant’s failure to issue accurate, itemized wage statements (“Wage Statement Claims”) which are alleged, or could have been alleged, based on the facts relating to the Wage Statement Claims in the operative Complaint or in a prior complaint, under any applicable legal provisions, including Labor Code § 226(a)(2), (a)(3), and (a)(9), and attendant civil penalties such as under Labor Code §§ 226(e) or 226.3 penalties, and PAGA civil penalties based on those claims.

Reimbursement Class Release Claims: Each Reimbursement Class Member shall be deemed to have released Released Parties from claims related to Defendant’s failure to reimburse all necessarily incurred business expenses (“Reimbursement Claims”), including but not limited to any and all work from home related expenses, incurred as a result of remote work which are alleged, or could have been alleged, based on the facts relating to the Reimbursement Claims in the operative Complaint or in a prior complaint, under any applicable legal provisions, including Labor Code § 2802, and PAGA civil penalties based on those claims.

Release of Adjunct PAGA Claims: Each Adjunct Aggrieved Employee shall be deemed to have fully and finally released and discharged the Released Parties of all claims that were alleged, or reasonably could have been alleged, based on the facts relating to the Unpaid Wages Claims and Wage Statement Claims in the operative Complaint or in a prior complaint, or in the PAGA Notice, on behalf of Adjunct Aggrieved Employees, under any applicable legal provisions, including Labor Code § 226(a)(2), (a)(3), and (a)(9), Labor Code §§ 1194, 1194.2 226.2, 226.7, 510, 512, Wage Order No. 4-2001 of the Industrial Welfare Commission, or under Wage Order No. 5-2001 of the Industrial Welfare Commission, Bus. & Prof. Code, § 17200.

Release of Reimbursement PAGA Claims: Each Reimbursement Aggrieved Employee shall be deemed to have fully and finally released and discharged the Released Parties of all that were alleged, or reasonably could have been alleged, in the PAGA Notice on behalf of Reimbursement Aggrieved Employees, and arising during the Reimbursement PAGA Period, including claims for PAGA Penalties under Labor Code § 2802.

9. What are my Rights and Options?

Option 1 – Do Nothing and Receive Your Payment: If you do not opt out, you are automatically entitled to your payment because you are a member of all or one of the Classes. In other words, if you are a Class Member, you do not need to take any action to receive the settlement payment set forth above.

Option 2 – Opt Out of the Settlement: If you do not wish to participate in the Settlement, you may exclude yourself by submitting a written request to be excluded from the Class. Your written request must expressly and clearly indicate that you do not want to participate in the Settlement, and you desire to be excluded from the Settlement. The written request for exclusion must include your name, address, and email address or telephone number, case name and number, and must be signed by you. Mail, fax, or email your written request for exclusion by to:

Beck et al v. University of San Francisco
P.O. Box 26170
Santa Ana, CA 92799
Email: info@usfclasssettlement.com
Fax: (714) 824-8591

The written request to be excluded from the Settlement must be postmarked or received by the Administrator not later than October 15, 2024. You should not request exclusion if you wish to receive money from the Class Settlement. You do not have the right to be excluded from the PAGA Settlement, whether or not you exclude yourself from the Class Settlement.

Option 3 – Object to the Settlement: If you wish to object to the Settlement you may submit an objection in writing by mail, email or fax to the Administrator (Simpluris, Inc.) at the information above, or appear at the Final Approval hearing. All written objections must provide your full name, address and telephone number, the case name and number, and your reasons why you think the Court should not approve the Settlement. If you choose to submit a written objection, your objection must be sent to the Administrator no later than October 15, 2024. Please note that you cannot both object to the Settlement and exclude yourself. If the Court overrules your objection, you will be bound by the Settlement and will receive your share of the Settlement.

10. What if I need more information?

The Notice of Class Action Settlement is only a summary of this case and Settlement. If you have any questions, you may also contact Class Counsel at:

HAMMONDLAW, P.C.
Julian Hammond
jhammond@hammondlawpc.com
Polina Brandler
pbrandler@hammondlawpc.com
1201 Pacific Avenue, Suite 600
Tacoma, WA 98402
Tel: (310) 807-1666

You may also access documents filed in this case free of charge by visiting https://sf.courts.ca.gov/online-services/case-informationTo navigate to the filed documents, you will need to click on “Access Now” under the heading “Case Information” and then “Access Now” under “Civil Case Query.” You may then search for filings by entering the case number located at the top of this Notice.

PLEASE DO NOT CONTACT THE COURT FOR INFORMATION ABOUT THIS SETTLEMENT

11. Final Approval Hearing

A Final Approval Hearing will be held before the Honorable Ethan P. Schulman in Department 304 of the Superior Court of California, County of San Francisco, located at the Civic Center Courthouse, 400 McAllister Street, San Francisco, California 94102 4514, on February 7, 2025, at 9:00 a.m. to determine whether the Settlement is fair, reasonable, and adequate. A motion for final approval of these items should be on file with the Court no later than October 23, 2024, and will be available for review after that date. This hearing may be continued without further direct notice to Class Members. However, notice of any continuance of the Final Approval Hearing date will be provided to any Class Member who submits an objection. It is not necessary for you to appear at this hearing.