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	<title>Protect Consumer Justice &#187; labor law</title>
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		<title>Rubio&#8217;s Restaurants finds another 140 cheated employees but doesn&#8217;t want to increase its settlement</title>
		<link>http://www.protectconsumerjustice.org/rubios-restaurants-finds-another-140-cheated-employees-but-doesnt-want-to-increase-its-settlement.html</link>
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		<pubDate>Thu, 03 Dec 2009 17:41:20 +0000</pubDate>
		<dc:creator>jg</dc:creator>
				<category><![CDATA[Page One]]></category>
		<category><![CDATA[class action lawsuits]]></category>
		<category><![CDATA[labor law]]></category>
		<category><![CDATA[wage and hour]]></category>

		<guid isPermaLink="false">http://www.protectconsumerjustice.org/?p=1591</guid>
		<description><![CDATA[Plaintiffs' lawyer Matthew Righett told the Daily Journal he'd never seen a defendant mistakenly overlook 140 people.  "It just seemed like an incredibly presumptuous overreaching to suggest that people should just be folded in on the backs of the people [in the existing class] and reduce the value," he said.
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			<content:encoded><![CDATA[<p>After reaching a $7.5 million settlement in a class action wage-and-hour suit involving 529 current and former employees &#8212; and after making the first payment of $2.5 million &#8212; officials at Southern California-based <strong><a href="http://www.rubios.com/" target="_blank">Rubio&#8217;s Restaurants</a></strong> suddenly discovered another 140 employees who had been wronged and qualified as plaintiffs.</p>
<p><img class="alignright size-medium wp-image-1593" title="Rubio's" src="http://www.protectconsumerjustice.org/wp-content/uploads/2009/12/Rubios1-300x145.gif" alt="Rubio's" width="300" height="145" />Plaintiffs&#8217; lawyer <a href="http://www.righettilaw.com/index.html" target="_blank"><strong>Matthew Righetti</strong></a>, experienced in litigating class action cases, told the <strong>Daily Journal</strong> he&#8217;d never seen a defendant mistakenly overlook 140 people.  (Rubio&#8217;s attorneys have characterized the oversight as an innocent mistake.)</p>
<p>The company tried to add the additional employees to the negoatiated settlement, thus lowering the amount each of the wronged employees would receive.  An <strong>Orange County Superior Court</strong> judge will now decide whether that&#8217;s fair, after the <strong>4th District Court of Appeal</strong> determined the previous judge in the case reversed his decision to add the new plaintiffs.</p>
<p>Of course, the original $7.5 million figure was arrived at with the understanding that there were 529 plaintiffs involved.  Righetti told the Daily Journal this type of after-the-fact add-on is common.</p>
<blockquote><p>Invariably after a settlement, the defendant finds a handful of people who should have been included in the class or a few hours of overtime that are due.</p>
<p>&#8220;You are completely at the mercy of the defendant in giving you accurate information. You rely on that information when you go into settlement,&#8221; he said&#8230;.</p>
<p>Righetti said he intends to either litigate the case to trial or reach a separate settlement for the 140, dismissing the notion that more people should share the same pot of money.</p>
<p>&#8220;It just seemed like an incredibly presumptuous overreaching to suggest that people should just be folded in on the backs of the people [in the existing class] and reduce the value,&#8221; he said.</p></blockquote>
<p>When first presented with the additional plaintiffs, Orange County Superior Court Judge <strong>Thierry Patrick Colow</strong> ruled the 140 new plaintiffs would be added to the existing settlement.  Righetti then asked Colow to reconsider the decision or remove himself from the case &#8212; and Colow did both last October, first separating the new plaintiffs from the settlement and then recusing himself &#8220;in the interests of justice.&#8221;</p>
<p>Rubio&#8217;s attorneys argued the original decision should still be in effect as a result, but the 4th District Court of Appeal determined Colow&#8217;s last ruling stands, and sent the case to Orange County Superior Coury Judge <strong>Gail Andler</strong>.</p>
<p>Last month Rubio&#8217;s <a href="http://phx.corporate-ir.net/phoenix.zhtml?c=117023&amp;p=irol-newsArticle&amp;ID=1351194&amp;highlight=" target="_blank">announced</a> third quarter earnings of $48.4 million, which apparently isn&#8217;t enough to keep them from trying to shortchange their employees.  The company&#8217;s <a href="http://phx.corporate-ir.net/External.File?item=UGFyZW50SUQ9MzQzODU4fENoaWxkSUQ9MzMwNTQ0fFR5cGU9MQ==&amp;t=1" target="_blank">2008 annual report</a> said, &#8220;We want to thank each and every one of our dedicated team members — and particularly those on the front line — who have created a guest experience that is second to none in our industry, and who made 2008 a successful year for Rubio’s during the most challenging of times.&#8221;  After the settlement of this lawsuit that thanks will now include proper payment of overtime.</p>
<p>Rubio&#8217;s is facing a potential class action suit alleging shift leaders worked off the clock and missed meal and rest breaks.  Rubio&#8217;s annual report says that case is still in the pre-class certification discovery stage, and the company is denying the allegation.  The company is also facing a class action lawsuit stemming from an <a href="http://phx.corporate-ir.net/phoenix.zhtml?c=117023&amp;p=irol-newsArticle&amp;ID=1348608&amp;highlight=" target="_blank">attempted purchase</a> of all of the company&#8217;s outstanding stock.</p>
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