On March 8, A California state judge approved a $35 million settlement ending claims that software giant Oracle Corp. denied overtime to some 1,700 employees (Oracle Wage & Hour Cases v. Oracle Corp., Cal. Super. Ct., No. JCCP004597, final approval granted 3/8/12).
Judge Steven Brick of the California Superior Court in Alameda County signed off on the settlement he preliminarily approved last fall.
Plaintiffs alleged that the Redwood Shores, Calif., company failed to pay overtime and missed meal and rest breaks to quality assurance, customer support/technical analysts, and project managers. The litigation claimed violations dating to April 2003 at Oracle and PeopleSoft Inc. Oracle purchased Pleasanton, Calif.-based PeopleSoft in December 2004.
The settlement ends two of three cases that were coordinated before Brick (Garcia v. Oracle Corp., Cal. Super. Ct., No. RG07321026; Krimsky v. Oracle Corp., Cal. Super. Ct., No. SCV 23970; and Anderson v. Oracle Corp., Cal. Super. Ct., No. CIV 469916). Brick certified the class in the case Leticia Garcia brought in 2007 in October 2010.
The cases, filed in California Superior Court in Alameda, Placer, and San Mateo counties, allege violations of the California Labor Code and the California Business & Professions Code Section 17200, the unfair business practices act.
Quality assurance engineers continue be classified as exempt employees while Oracle reclassified customer support/technical analysts and project managers, Ho said. QAs were paid for overtime through November.
The net settlement amount is $23.55 million. The five class representatives each will receive $30,000. The average class members will receive is slightly more than $14,000, with more than 50 class members each receiving in excess of $50,000, according to the plaintiffs’ motion for final approval. Settlement amounts are pro rata based on workweek.
Class counsel of Goldstein, Demchak, Weltin Streb & Weltin in Oakland, and Flynn, Delich & Wise in San Francisco will share $10.5 million in legal fees. Approved costs totaled $670,000, Ho said.
Under the settlement, $100,000 will be paid to the California Labor & Workforce Development Agency as payment for claims of penalties under the state Private Attorneys General Act.
Half of any unclaimed funds would be split equally by the Alexander Community Law Center at Santa Clara University and the Legal Aid Society Employment Law Center. The other half will be split between the Wounded Warrior Project and the Tenderloin Tech Lab of the St. Anthony Foundation in San Francisco. 03.17.2012