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CACafe In-store Demonstrator Class and Collective Action Settlement

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CACafe In-store Demonstrator Class and Collective Action Settlement

CACafe In-store Demonstrator Class and Collective Action Settlement

Case Files

First Amended Complaint

Order Granting Preliminary Approval of Class Action Settlement and Settlement Agreement

Stipulation Amending the Settlement Agreement

Motion for Preliminary Approval of Class Action Settlement and Certification of Settlement Class

Case Summary

This case is brought by a former In-store Demonstrator on behalf of In-store Demonstrators who performed CACafe product demonstrations at Costco warehouses, were classified as independent contractors and, as a result, not paid overtime for hours worked over 40 per week (and more than 8 hours in a day in California). The former in-store demonstrator alleges causes of action against CACafe, Inc., Jane Zheng, Ted Chao, Costco Wholesale Corporation, and Club Demonstration Services, Inc. (together, “Defendants”) for:

(1) failure to pay overtime wages;

(2)failure to pay minimum wage compensation;

(3) failure to pay earned wages upon discharge;

(4) failure to provide timely, accurate, itemized wage statements;

(5) failure to provide and/or authorize meal and rest periods;

(6) failure to reimburse business expenses;

(7) unlawful and/or unfair business practices in violation of California Business and Professions Code; and

(8) penalties under the California Labor Code Private Attorneys General Act of 2004.

Defendants deny that they are liable for any of the claims alleged. The Court has not made any determinations about the merits of the named representative’s claims.

However, in light of the risk, expense, and delay of proceeding to trial, potentially litigating an appeal of pre-trial rulings and the trial outcome, and potentially parallel civil proceedings, the parties agreed to settle the lawsuit, and the Court has granted preliminary approval of the settlement.

The settlement will provide a total of $640,000 to, in part, pay claims of in-store demonstrators who: (1) performed CACafe product demonstrations at Costco warehouses in California between October 31, 2012 and December 13, 2018, and/or (2) who timely joined the federal nationwide collective action and performed CACafe product demonstrations at Costco warehouses in the United States between October 31, 2013 and December 13, 2018.

The Court has scheduled the Final Fairness Hearing for April 23, 2019 at 2 p.m. at the United States District Court for the Northern District of California,1301 Clay Street, 4th Floor, Courtroom 1, Oakland, CA 94612, before the Honorable Judge Yvonne Gonzalez Rogers. Note: the Final Fairness Hearing date may be rescheduled without further notice — please review the Court’s calendar for the most updated information.

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