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Construction supply company BMC West LLC agreed to pay $4.55 million to settle claims it underpaid employees.
Some 9,358 employees would be part of the class if the settlement agreement receives court approval. Judge Jesus G. Bernal of the U.S. District Court for the Central District of California will review the agreement to decide whether it’s a fair, reasonable, and adequate resolution of the dispute.
The settlement represents about 36 percent of the amount the company would be liable for if it lost at trial, Gregg A. Farley of El Segundo, Calif., one of the workers’ attorneys, estimated. Both sides agreed to settle because of the uncertainties involved in proceeding with litigation, according to the settlement agreement.
The company paid workers according to hours they were scheduled, rather than hours they actually worked, the employees alleged. BMC failed to give rest and meal breaks required by California law, the workers said.
BMC is a subsidiary of BMC Stock Holdings Inc. The parent and its subsidiaries have been involved since 2007 in 14 labor and employment cases, mostly under the Fair Labor Standards Act, and one retirement case, according to data available in Bloomberg Law litigation analytics.
Robert Skripko Jr., Paul Deni, and Ethan Rasi, all of whom practice in Irvine, Calif., and Sahag Majarian II of Tarzana, Calif., also represent the workers.
Littler Mendelson P.C. attorneys Brian Dixon and Laura Hayward in San Francisco and Douglas Wickham and Penny Chen in Los Angeles represent BMC.
The case is Gonzalez v. BMC West, LLC, C.D. Cal., No. 5:17-cv-00390, motion for preliminary settlement approval 4/11/18.
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