Frequently Asked Questions

BASIC INFORMATION

1. Why should you read this information?

The Court has granted preliminary approval of a proposed class and PAGA representative action settlement (the “Settlement”) in the case entitled Valerie Alberts et al v Aurora Behavioral Health Care, et al., Los Angeles County Superior Court Case No. BC419340 (the “Action”). The Court ordered that this information be sent to you because you are entitled to money under the Settlement and because the Settlement affects your legal rights as a Class and/or PAGA Member.

Defendants’ records show that you were employed by as a Registered Nurse, Licensed Vocational Nurse, Licensed Psychiatric Technician, Mental Health Worker and/or a Behavioral Health Care Specialist at Aurora Las Encinas Hospital or Aurora Charter Oak Hospital from August 6, 2005, through April 10, 2013 (the “Class Period”), and you did not opt out of this class action in response to a class notice sent on March 28, 2019. If you previously opted out of this class action, then you are not a Class Member and you are not entitled to an Individual Settlement Payment from the class settlement.

If you worked for Defendants between July 7, 2009, and April 10, 2013, then you are a PAGA Member, and you are entitled to an Individual PAGA Payment from the settlement of the claims for civil penalties under PAGA.

The purpose of this information is to provide you with a brief description of the Action, to inform you of the terms of the Settlement, to describe your rights in connection with the Settlement, to explain what steps you may take to dispute the calculation of your settlement payment, or to object to the Settlement.

2. What is this case about?

On August 6, 2009, Plaintiffs Valerie Alberts et al. filed a complaint against Defendants in Los Angeles Superior Court entitled Alberts, et al v Aurora Behavioral Health Care, et al., Case No. BC419340 in which Plaintiffs sought damages on behalf of themselves and other similarly non-exempt health care workers for Defendants’ alleged violation of the California Labor Code, including compensation of alleged unpaid overtime and missed meal and rest breaks (the “Action”). On or about October 5, 2010, Plaintiffs filed a Third Amended Complaint to include allegations under the Private Attorney General Act (“PAGA”) (Labor Code 2698, et seq.)

In their operative Fourth Amended Complaint, Plaintiffs allege causes of action on behalf of themselves and the Class Members for (1) failure to pay overtime compensation; (2) failure to provide meal and rest periods; (3) waiting time penalties; (4) failure to provide accurate itemized wage statements; (5) improper deductions and withholdings; (6) payment for required and necessary expenditures; (7) unfair business practices; and (8) civil penalties under PAGA.

On June 5, 2018, the Court granted Plaintiffs’ Motion for Class Certification, certifying classes for Las Encinas and one for Charter Oak. On or about March 28, 2019, Class Members were mailed a notice of the class certification and provided an opportunity to opt out of the class action. Plaintiffs and Class Counsel represent the certified class of approximately 1,180 current and former nonexempt Registered Nurses, Licensed Vocational Nurses, Licensed Psychiatric Technicians, Mental Health Workers, and Behavioral Health Care specialists (“Nursing Staff”) at Aurora Las Encinas Hospital and Aurora Charter Oak Hospital.

Defendants deny all allegations in the Action and contend that they have fully complied with federal, state and local wage and hour laws. The Settlement is not an admission of any wrongdoing by Defendants or an indication that any law was violated or that this case was suitable for class or representative treatment.

The Court has not decided the merits of Plaintiffs’ claims or Defendants’ defenses. However, to avoid additional expense, inconvenience, uncertainty and interference with business operations, the Parties concluded that it is in the best interests of both Class Members and Defendants to settle the Action on the terms summarized in this website. The Parties reached the Settlement after mediation and arms’-length negotiations between the Parties with the assistance of a neutral mediator.

The Plaintiffs and Class Representatives and Class Counsel support the Settlement. Among the reasons for support are the defenses to liability potentially available to Defendants, the inherent risks of trial on the merits, and the delays and uncertainties associated with ongoing litigation.

3. Who are the Attorneys?

4. What is the Settlement Amount?

On May 15, 2024, the Court granted preliminary approval of the Settlement. Upon Final Approval, Class Members will be bound by the Settlement and will release their claims against Defendants, as described below in the “Release” section.

Defendants have agreed to pay $6,250,000.00 (the “Gross Settlement Amount”) to fully resolve all claims in the Action. From the Gross Settlement Amount, Class Counsel will apply to the Court for the following deductions from the Gross Settlement Amount:

Settlement Administration Costs.
The Court has approved Simpluris to act as the “Settlement Administrator,” who is sending this information to you and who will perform many other duties relating to the Settlement. The Court has approved up to $18,000 from the Gross Settlement Amount to pay the Settlement Administration Costs.

Class Counsel Award.
Class Counsel have been prosecuting the Action on behalf of the Class Members on a contingency fee basis (that is, without being paid any money to date) and have been paying all litigation costs and expenses for over fourteen years. The Court will determine the actual amount awarded to Counsel as attorneys’ fees, which will be paid from the Gross Settlement Amount. Class Members are not personally responsible for any of Class Counsel’s attorneys’ fees or expenses. Class Counsel will be seeking attorneys’ fees of up to One Third (33.333%) of the Gross Settlement Amount (which is currently estimated to be $2,083,333) as reasonable compensation for the work Class Counsel performed and will continue to perform in this Action through Settlement finalization. Class Counsel also will ask for reimbursement of up to $485,000 for verified costs which were incurred by Class Counsel in connection with the Action.

Service Awards for Class Representatives.
Class Counsel will ask the Court to award $125,000 collectively to the named Plaintiffs as Service Awards ($25,000 each). This is meant to compensate Plaintiffs for their service and extra work provided in bringing this case on behalf of the Class, for undertaking the risks of payment of costs (in the event of an unsuccessful outcome of the Action) and for signing a general release of any claims they may have against Defendants.

PAGA Payment.
The parties have agreed to allocate $100,000.00 of the Gross Settlement Amount in settlement of claims for PAGA civil penalties. Per Labor Code Section 2699(i), 75% of the PAGA Payment ($75,000.00) will be payable to the California Labor Workforce Development Agency, and the remaining 25% ($25,000.00) will be payable to PAGA Members as Individual PAGA Payments.

After these deductions, the remaining portion of the Gross Settlement Amount is the “Net Settlement Amount,” which is currently estimated to be approximately $3,445,259.00. The Net Settlement Amount will be apportioned and paid out as Individual Settlement Payments to the Class Members.

5. How will the Individual Settlement Payments to Class Members be calculated?

Class Members will receive Individual Settlement Payments from the Net Settlement Amount. A claim form is not required to become a Class Member or to receive an Individual Settlement Payment from the Net Settlement Amount. The Net Settlement Amount will be divided among Class Members based on the following formula:

Class Members will be paid based on the number of “Compensable Shifts” (i.e., shifts over 5 hours) and the positions held by each Class Member. The Compensable Shifts should be multiplied by the following values depending on the positions held by each Class Member: Mental Health Workers and Behavioral Health Specialists shall have a value of 1.0. Licensed Vocational Nurses and Licensed Psychiatric Technicians shall have a value of 1.5 and Registered Nurses shall have a value of 2.5.

The Compensable Shifts for each Class Member (multiplied by the above values based on position) will be divided by the total Compensable Shifts for all Class Members, resulting in the Payment Ratio for each Class Member. Each Class Member’s Payment Ratio is then multiplied by the Net Settlement Amount to determine their estimated Individual Settlement Payment. There are approximately 350,467 Compensable Shifts.

For tax purposes, each Individual Settlement Award will be allocated as 70% penalties and interest issued pursuant to an IRS Form 1099; and 30% as wages issued pursuant to an IRS Form W-2, with employee-side payroll withholding taxes withheld. Class Members are responsible for the proper income tax treatment of the Individual Settlement Payments. The Settlement Administrator, Defendants and their counsel, and Class Counsel cannot provide tax advice. Accordingly, Class Members should consult with their tax advisors concerning the tax consequences and treatment of payments they receive under the Settlement.

If you previously opted out from this Class Action, then you are not a Class Member entitled to an Individual Settlement Payment.

6. How will the PAGA Payment be allocated to the LWDA and PAGA Members?

The Parties will ask the Court to approve the $100,000 PAGA Payment in settlement of claims for civil penalties under PAGA. As required under PAGA, 75% of the PAGA Payment, or $75,000, will be paid to the LWDA. The remaining 25% of the PAGA Payment, or $25,000, will be distributed to the PAGA Members as Individual PAGA Payments.

Not all Class Members are PAGA Members who are entitled to an Individual PAGA Payment. If you are a PAGA Member, you are entitled to receive an Individual PAGA Payment; no claim form is required. Because PAGA Members cannot opt out of the PAGA settlement, if you are a PAGA Member and you opt out of the class settlement, you will still receive an Individual PAGA Payment and be bound by the PAGA settlement.

Each PAGA Member’s Individual PAGA Payment will be a pro rata share of the 25% of the PAGA Payment to be distributed to PAGA Members. It will be based on the number of pay periods that each PAGA Member worked for Defendant during the PAGA Period July 7, 2009, and April 10, 2013. (“Eligible PAGA Pay Periods”) as a proportion of all Eligible Pay Periods for all PAGA Members. For tax purposes, 100% of the Individual PAGA Payments will be allocated as penalties for which an IRS Form 1099 to the extent required by law.

7. How can I get a settlement payment?

If you do nothing, you will automatically receive your Individual Settlement Payment and Individual PAGA Payment (if any) after the Court approves the Settlement at a Final Approval Hearing. You must notify the Settlement Administrator of any change in your name, mailing address and/or telephone number if the information shown on this is not correct. It is your responsibility to keep the Settlement Administrator informed of any change in your address. Settlement payments will be mailed to the last known address the Settlement Administrator has on file for you. You can contact the Settlement Administrator by U.S. Mail, email or phone at (888) 906-9092.if you need to update your contact information.

8. What am I giving up to get an Individual Settlement Payment?

If the Court approves this Settlement, Class Members cannot sue, continue to sue, or be a part of any other lawsuit against Defendants or the Released Parties concerning the legal claims being resolved in this Settlement. Specifically, you will be giving up or “releasing” claims against the Released Parties, as follows:

Released Parties:
Defendants Aurora Behavioral Health Care, Aurora Las Encinas LLC and Aurora Charter Oak-Los Angeles, LLC and each of their past and present parent, predecessor, related, affiliated, and subsidiary entities, and each of their respective present and former officers, directors, stockholders, agent, insurers, co-insurers, reinsurers, attorneys, accountants, auditors, advisors, representatives, consultants, pension and welfare benefit plans, plan fiduciaries, administrators, trustees, partners, predecessors, successors and assigns.

Class Released Claims:
As of the Effective Date, all Class Members fully and finally release the Released Parties from (1) all claims alleged in the Action, and (2) all claims, rights, demands, liabilities, and causes of action that could have been asserted in the Action reasonably arising from the same alleged facts and theories in the complaints filed in the Action, or alleged in the PAGA notices sent by the Plaintiffs to the LWDA, under any federal, state and local laws or the IWC Wage Orders. T he Released Claims include, but are not limited to: unpaid wages, unpaid minimum wages, unpaid overtime, failure to timely pay wages, failure to provide meal and rest breaks, meal and rest period premiums, failure to provide accurate wage statements, failure to maintain requisite payroll records, failure to reimburse business expenses, failure to provide compliant wage statements, breach of Labor Code section 226, failure to pay all wages owed upon termination, improper deductions and withholdings, unfair business practices based on the same Labor Code violations, and all claims for interest, penalties, attorneys’ fees, costs and any other monetary relief based upon the claims described above and including, but not limited to, pursuant to Labor Code §§ 210, 218.5, 218.6, Code of Civil Procedure §1021.5, and/or Civil Code §§ 3287(b) and 3289, costs, attorneys' fees, injunctive relief, declaratory relief, or accounting that are based on or related to the alleged Labor Code, Wage Order, and Business & Professions Code violations, that accrued during the Class Period.

9. What PAGA Claims are released by this Settlement?

If the Court approves this Settlement, then the PAGA Members will fully and finally release the Released Parties from all claims for civil penalties and attorneys’ fees and costs under PAGA as follows:

PAGA Released Claims: As of the date of the Effective Date, Plaintiffs, as representatives of the State of California and on behalf of the LWDA and as representatives of the PAGA Members, fully and finally release the Released Parties from the following PAGA Released Claims for the PAGA Period: all claims for civil penalties under PAGA asserted in any of the complaints filed in the Action, and all claims that could have been asserted in the Action based on the same alleged facts and theories in the complaints or in the PAGA notices sent by the Plaintiffs to the LWDA, including claims for penalties based on violations of the California Labor Code and IWC Wage Orders for unpaid wages, unpaid minimum wages, unpaid overtime, failure to timely pay wages, failure to provide meal and rest breaks, meal and rest period premiums, failure to provide accurate wage statements, failure to maintain requisite payroll records, failure to reimburse business expenses, failure to provide compliant wage statements, breach of Labor Code section 226, failure to pay all wages owed upon termination, improper deductions and withholdings, violations of California Labor Code sections 201, 202, 203, 204, 221-224, 226, 226.3, 226.7, 450, 512, 558, 1194, and 2802.

10. What other options do I have?

Dispute in the job titles, Compensable Shifts and Eligible Pay Periods in this information.
If you disagree with the information in the Notice mailed to you, you may submit a dispute, along with any supporting documentation to the Settlement Administrator, which must be postmarked no later than August 10, 2024.

DO NOT SEND ORIGINALS; DOCUMENTATION SENT TO THE SETTLEMENT
ADMINISTRATOR WILL NOT BE RETURNED OR PRESERVED.

The Parties and the Settlement Administrator and, if necessary, the Court, will evaluate the evidence submitted and discuss in good faith how to resolve any disputes submitted by Class Members.

Objecting to the Settlement.
If you are a Class Member, you also have the right to object to the terms of the Settlement. However, if the Court rejects your objection, you will still be bound by the terms of the Settlement. If you wish to object to the Settlement, or any portion of it, you may submit a written objection to the Settlement Administrator at:

Alberts et al v Aurora Behavioral Health Care, et al.

c/o Simpluris

P.O. Box 26170

Santa Ana, CA 92799

Your written objection should include your name, address, telephone number, the contact information for any attorney representing you regarding your objection (if any), the case name and number, each specific reason in support of your objection, and any legal or factual support for each objection together with any evidence in support of your objection. All objections or other correspondence must state the name and number of the case, which is Alberts, et al v Aurora Behavioral Health Care, et al., Los Angeles County Superior Court Case No. BC419340 Objections in writing must be postmarked on or before August 10, 2024.

You may also appear at the Final Approval Hearing scheduled for November 13, 2024, in Department 51 of the Los Angeles County Superior Court, located at 111 N. Hill Street, Los Angeles, CA 90012. The location, date, and time of the Final Approval Hearing may be moved without further notice to you. You may contact Class Counsel using the contact information provided above to confirm the address and time of the hearing, if you wish to appear in person. You have the right to appear either in person or through your own attorney at this hearing, whether or not you submit a written objection.

11. What is the next step?

The Court will hold a Final Approval Hearing on the adequacy, reasonableness, and fairness of the Settlement on November 13, 2024, at 9:00 a.m., in Department 51 of the Los Angeles County Superior Court, located at 111 N. Hill Street, Los Angeles, CA 90012. The location, date, and time of the Final Approval Hearing may be moved without further notice to you. The Court also will be asked to rule on Class Counsel ’s request for a Class Counsel Award, the Service Awards to the Class Representatives, the Settlement Administrator’s costs, and the amount related to the PAGA civil penalties. You are not required to attend the Final Approval Hearing.

12. How can I get additional information?

This website is only a summary of the Action and the Settlement. For more information, you may inspect the Court’s files via the Court’s website at www.lacourt.org or the Important Documents page. You may also contact the Settlement Administrator (888) 906-9092 toll free, or Class Counsel using the contact information listed above for more information.

PLEASE DO NOT CALL OR WRITE THE CLERK OF THE COURT OR THE JUDGE FOR INFORMATION
ABOUT THIS SETTLEMENT OR THE SETTLEMENT PROCESS