Foreman v. Apple, Inc.

Background

Anthony Foreman brought the action individually and on behalf of similarly situated people. The plaintiffs alleged that Apple failed to include all legally required forms of compensation, including commissions earned by participating workers, when calculating the regular rate used for overtime pay. They also alleged that Apple failed to pay for all hours worked, particularly unpaid travel time.

Apple denied the allegations, denied that any plaintiff or participating worker was entitled to recover, and denied that the action could properly proceed as a collective action under the Fair Labor Standards Act (FLSA). The parties agreed that the risks of continued litigation favored settlement.

Settlement Approval

The court reviewed the settlement, including its $500,000 total amount, allocation plan, and release of claims. It found that the settlement resulted from arm’s-length negotiations supervised by an experienced, independent mediator, after plaintiffs’ counsel investigated the claims and assessed their strengths and weaknesses. The court also found that the settlement process was not collusive and that the payments to participating workers were fair and reasonable.

The court approved the proposed notice and claim form. It found that the notice accurately described the action, the participating workers, the settlement’s terms, the allocation plan, service payments, attorney fees, and costs. Notice was to be sent by email and first-class mail, with payments available by mailed check or electronic payment. Simpluris was appointed as the settlement administrator.

The court approved the release of claims in the settlement as fair, reasonable, and enforceable. Plaintiffs and participating workers would be bound by the release whether or not they cashed or deposited their checks or selected electronic payment.

Payments and Fees

The court approved service payments of $5,000 each to Anthony Foreman and Pflughaupt. It found those payments reasonable based on their work protecting the participating workers’ interests, providing information about their work experiences, producing documents, and participating in depositions.

The court also approved $200,000 in attorney fees, equal to 40 percent of the settlement fund, and $33,942.30 in litigation costs and expenses. Ten percent of the attorney-fee award was held back until plaintiffs’ counsel filed a post-distribution accounting describing the settlement payments and administration. Counsel was directed to submit a proposed order seeking release of the remaining fees with that accounting.

Disposition

Judge Vince Chhabria concluded that the settlement met the standards for approval and ordered the parties to distribute the required payments. The court entered final judgment, ordered compliance with the settlement, and dismissed the action with prejudice, with each side bearing its own costs and attorney fees except as provided by the settlement and the court’s orders.

The court retained jurisdiction to resolve issues involving interpretation, administration, implementation, effectuation, and enforcement of the settlement. The order also stated that it would be vacated if the settlement were reversed or materially modified on appeal.