The Cubias action deals with a period of time during which General Managers were paid as salaried employees. The Duarte and Patel actions deal with a period of time during which General Managers were paid as hourly employees. 

The Named Plaintiff in the Cubias lawsuit, Jose Cubias, claims he and other General Managers were misclassified as exempt salaried employees during the period November 6, 2005 through June 2009. Although the company reclassified General Managers as hourly employees in June 2009, Mr. Cubias’ lawsuit alleges that the company failed to pay General Managers the wages and overtime premiums due to them during the period of misclassification.

The Named Plaintiff in the Duarte lawsuit, Elizabeth Duarte, claims that she and other General Managers were required to work off the clock without pay, and that she and other General Managers were required to use their personal cell phones for work without any reimbursement for the costs of operating those phones.

The Named Plaintiff in the Patel lawsuit, Avakash Patel, claims that he and other General Managers, GMITs, Interim General Managers, Shift Managers and Shift Leads were deprived of their meal breaks because company policy forbid them from leaving the restaurant for a meal break when they were working as the Manager on Duty or Manager in Charge.

The lawsuits seek relief under various California Labor Code provisions and section 17200 of the California Business and Professions Code. The Named Plaintiffs also seek penalties on behalf of the State of California under California’s Private Attorneys General Act (“PAGA”).

CKE denies all the Plaintiffs’ allegations and instead contends that CKE committed no unlawful employment acts with respect to Class Members. The Court has not ruled whether either party is correct.

The Settlement represents a compromise and settlement of disputed claims. Nothing in the Settlement is an admission by CKE or any other Defendant that the claims against them have merit, or that they have any liability to Named Plaintiffs or the proposed Class on the claims in the lawsuits.

To be included in the settlement, you must fall within one or more of the following definitions (collectively, the “Class”):

Cubias Subclass: all individuals who worked in the General Manager position for a CKE Entity in California during a class period from November 6, 2005 to June 15, 2009 (“Cubias Subclass Period”).

Duarte Subclass: all individuals who worked in the General Manager position for a CKE Entity in California during a class period from June 16, 2009 through December 31, 2020 (“Duarte Subclass Period”).

Patel Subclass: all individuals who worked in the General Manager, Shift Lead(er), Shift Manager, General Manager in Training (GMIT), or Interim General Manager position for a CKE Entity in California during a class period from May 30, 2013 through December 31, 2020 (“Patel Subclass Period”).

1.  The Settlement Fund is at least $6,250,000. If the class has more than 4,794 people in it, the total Settlement Fund will be increased by $1,275 for each additional General Manager Class Member in the Class beyond 1,059 individuals; and will be increased by $125 for each Shift Lead(er), Shift Manager, GMIT or Interim General Manager Class Member identified beyond 3,300 individuals. The Settlement Fund will fund payments to Class Members, as well as all other required payments under the Settlement.
   
   
2. From this Settlement Fund, amounts will be deducted for attorneys’ fees in the amount the Court approves, up to 50% of the total Settlement Fund; costs incurred by Plaintiffs’ attorneys and others in the amount the Court approves, up to $875,000; incentive payments for the Named Plaintiffs and Class Members who testified in the Actions, in the amount the Court approves (not to exceed $25,000 for each Named Plaintiff or $7,500 for each Class Member who testified at a deposition); a payment to the Settlement Administrator for the costs of administering the Settlement up to $39,000; and a payment to the State of California for PAGA penalties, in the amount of $75,000.
   
   
3. The funds remaining after making all these payments will be distributed to the Class Members depending on each Class Member’s job title and period of time worked during each Class Period.
   
   
4. If there are any further remaining funds (for example, uncashed checks) 180 days after the distribution of the last Settlement payment to Class Members, these funds will be donated to the National Employment Law Project and Restaurants Care (California Restaurant Foundation.) No funds will revert to Defendants.
   
   
5. You will be bound by this Settlement unless you submit a written Request for Exclusion to the Settlement Administrator, postmarked by the deadline of July 13, 2021. If you do mail a Request for Exclusion by the deadline in accordance with the instructions for submitting a Request for Exclusion, you will be excluded from the Settlement and will not receive a Settlement payment, but you will retain your existing right, if any, to pursue a claim against CKE. 
   
   
6. If the Court does not grant final approval, or if final approval is reversed in whole or in part on appeal, the parties have no obligations under the Settlement, and Class Members will not receive payments.
   
   
7. The Settlement includes a release. The Released Claims are all claims, injuries, demands, losses, damages, costs, expenses, compensation, suits, causes of action, attorneys’ fees, obligations, rights and liabilities of any nature, type or description, whether known or unknown, contingent or vested, in law or in equity, based on direct or vicarious liability, and regardless of legal theory, accruing on or before December 31, 2020, that are based on, concern, arise from, or directly relate to the claims that were pled in any of the Actions, or that could have been pled based on the facts alleged in any of the operative complaints in any of the Actions, or any amendments thereto, including, but not limited to, any claims or potential claims under PAGA and any claims for alleged off-the-clock work related to or arising from Named Plaintiffs’ theories that a General Manager or Shift Leader must be physically present on-site at a location at all times to serve as a Manager on Duty during operating hours. The release will cover all remedies for Released Claims, including but not limited to Labor Code sections 201-204, 210, 216, 218.5, 218.6, 225.5, 226, 226.3, 226.7, 227.3, 510, 512, 551, 552, 558, 558.1, 1174, 1174.5, 1182.12, 1194, 1194.2, 1194.3, 1197, 1197.1, 1198, 2698 et seq. (PAGA) and 2802, IWC Wage Order No. 5 and Civil Code sections 1021.5, 3287 and 17200 et seq. The release applies to Carl Karcher Enterprises, Inc., Carl Karcher Enterprises LLC, CKE Restaurants Holdings, Inc., and Carl’s Jr. Restaurants LLC (the “CKE Entities”), and each of their respective current and former parent companies, subsidiaries, divisions, and current and former affiliated individuals and entities, legal successors, predecessors (including companies they have acquired, purchased, or absorbed), assigns, joint ventures, and each and all of their respective officers, partners, directors, owners, stockholders, servants, agents, shareholders, members, managers, principals, investment advisors, consultants, employees, representatives, attorneys, accountants, lenders, underwriters, benefits administrators, investors, funds, and insurers, past, present and future, and all persons acting under, by, through, or in concert with any of them. Nothing in the Settlement shall release any claims against any franchisee of any CKE Entities, and no franchisee shall be considered a Released Party.
   
   
8. Participating in this Settlement will not affect your right to assert claims against any CKE Entity that arise after December 31, 2020.

1. Each Class Member who does not submit a valid Request for Exclusion will receive a Settlement payment calculated as follows:
   
   
   • Each General Manager Class Member will receive two (2) credits for each pay period that he or she is identified by CKE as working in that position during the Cubias Subclass Period from November 6, 2005 to June 15, 2009.
   • Each General Manager Class Member will receive two (2) credits for each pay period that he or she is identified by CKE as working in that position during the Duarte Subclass Period from June 16, 2009 through December 31, 2020.
   • Each Shift Lead(er) and Shift Manager Class Member will receive one (1) credit for each pay period that he or she is identified by CKE as working in those positions during the Patel Subclass Period from May 30, 2013 through December 31, 2020.
   • Each General Manager, General Manager in Training (GMIT), and Interim General Manager Class Member will receive two (2) credits for each pay period that he or she is identified by CKE as working in those position during the Patel Subclass Period from May 30, 2013 through December 31, 2020.
     
     
2. A Class Member who is a member of more than one Subclass will receive credits for pay period in all Subclasses of which he or she is a member.
   
   
3. The value of a credit is determined by dividing the total amount of money available for distribution to Class Members by the total number of credits awarded to all Class Members.

1. The number of pay periods that you worked during the time covered by the settlement can be found in your Notice and is based on the records CKE has provided. Note that the Settlement covers a limited period and this number is NOT the same as the total time you spent working for CKE. It just counts the pay periods you worked in California during the limited timeframe covered by the Settlement. Your estimated number of credits and your estimated award amount is also found in your Notice. This is just an estimate and your actual award may be more or less.
   
   
2. If you think the number of pay periods or credits provided in your Notice is incorrect, you can contest these values by sending a statement to the Settlement Administrator at the address listed below. Your statement must be postmarked by the deadline of July 13, 2021. Your statement must include the reason that you believe the amount of the estimated payment is incorrect and state the number of workweeks or credits that you believe is correct.
   
   
3. Contesting the number of pay periods or credits will not remove you from the Settlement. The Administrator will make a recommendation on your dispute and the Court will make the final decision on your payment amount, but you will still be bound by the Settlement regardless of the outcome. If you do not want to be bound by the Settlement, you need to submit a Request for Exclusion as described below.

If you did not receive a Notice with your individual payment information, please contact the Settlement Administrator at (833) 594-1993.

1. Participating in the Settlement: Unless you file a written Request for Exclusion before the deadline, you will be part of the Settlement Class and you will be bound by the terms of the Settlement.
2. Excluding Yourself from the Settlement: If you do not wish to participate in the Settlement, you must mail a written Request for Exclusion to the Settlement Administrator. The Request for Exclusion must include: (1) the Class Member’s name, address and last four digits of his or her Social Security number; (2) the Class Member’s unique assigned ID number (which can be found on your notice form); (3) state “I wish to request exclusion from the Class Claims”; and (4) the signature of the Class Member. The Request for Exclusion may not be signed by an agent or representative of the Class Member.

   If you do not have your unique assigned ID number, please contact the Settlement Administrator.

   The Request for Exclusion must be completed, signed, and mailed to the Settlement Administrator at the address identified below, postmarked no later than July 13, 2021. A Class Member who fails to return a Request for Exclusion in the manner and by the deadline specified above will be bound by all terms and conditions of the Settlement and the Court’s judgment, regardless of whether he or she has objected to the Settlement.

   Any person who files a complete and timely Request for Exclusion will, upon receipt, no longer be a member of the Class, and will not be eligible to receive a payment. Any such person will retain the right, if any, to pursue a claim against CKE at his or her own expense.

   Please note: Class Members cannot exclude themselves from the portion of the Settlement relating to claims under PAGA. This means that all Class Members, regardless of whether they submit a Request for Exclusion, will be bound by the settlement and release of claims asserted in the Actions under PAGA if the Settlement is approved by the Court.

   There will be no retaliation or adverse action taken against any Class Member whether that Class Member participates in the Settlement, submits a Request for Exclusion, or objects to the Settlement.

3. Objecting to the Settlement: If you think the Settlement should not be approved, you may mail an objection to the Settlement Administrator. If the Court does not approve the Settlement, no Settlement payments will be sent out and the lawsuits will continue.

   If you submit a Request for Exclusion from the Settlement, you cannot also object to the Settlement. If a Class Member submits both an objection and a valid and timely Request for Exclusion, the Request for Exclusion will be accepted, and the objection will be rejected.

   All written objections and supporting papers must contain at least the following:  (1) the objecting Class Member’s full name, address, and signature; (2) the Class Member’s unique assigned ID number (which can be found on your notice form);(3) a statement of the basis for each objection; and (4) a statement whether the objector intends to appear at the Fairness Hearing, either in person or through counsel and, if through counsel, a statement identifying that counsel by name, bar number, address, and telephone number.

   All written objections and supporting papers must be mailed to the Settlement Administrator at the Settlement Administrator’s address below and be postmarked on or before July 13, 2021.

4. Participating in the Fairness Hearing: If you submit a timely written objection and indicate your intent to appear at the Fairness Hearing, you may also appear in person or appear through counsel of your choice, paid at your own expense, and be heard at the time of the Fairness Hearing. You are not required to attend the hearing.

Send any Request for Exclusion or any Objection to the Settlement Administrator at the following:

CKE Class Action Settlement Administrator
c/o Settlement Services, Inc.
PO Box 10269
Tallahassee, FL 32302-2269
Phone: (833) 594-1993

The Graves Firm
Allen Graves
122 N. Baldwin Ave., Main Floor
Sierra Madre, CA 91024
www.gravesfirm.com
(626) 240-0734

allen@gravesfirm.com

The Court has scheduled the Fairness Hearing for 8:30AM on September 8, 2021 at the Santa Barbara Superior Court, 1100 Anacapa St., Santa Barbara, California 93101, to determine whether the Settlement should be finally approved. The Court will also be asked to approve the requests for the Named Plaintiffs’ and other Class Members’ Service Awards and Class Counsel’s Fees and Costs.

The hearing may be postponed without further notice to the Class. It is not necessary for you to appear at this hearing.  If you plan to attend the Fairness Hearing, you may contact Class Counsel to confirm the date and time, as the hearing may be rescheduled without further notice. 

This website summarizes the proposed settlement. For more precise terms and conditions of the Settlement, please contact Class Counsel (contact information above). You can also get more information by calling the Settlement Administrator at (833) 594-1993 or writing to:

CKE Class Action Settlement Administrator
c/o Settlement Services, Inc.
PO Box 10269
Tallahassee, FL 32302-2269
(833) 594-1993

The key documents related to this case and this Settlement can be found here.