Frequently Asked Questions

1. WHAT IS THE ACTION ABOUT?

Plaintiff is a former SIMA employee. The Action accuses SIMA of violating California labor laws by: failure to pay wages, including minimum wage and overtime; failure to provide rest periods; failure to provide meal periods; failure to pay reporting time and other wages; failure to timely pay compensation due and owing; failure to provide accurate itemized wage statements; and unfair business practices. Based on the same claims, Plaintiff has also asserted a claim for civil penalties under the California Private Attorneys General Act (Lab. Code, § 2698, et seq.) (“PAGA”). Plaintiff is represented by attorneys in the Action: attorney Joshua C. Braddock of Arendsen Braddock LLP and attorney Zachary M. Cantor of Cantor Law. (“Class Counsel.”) SIMA strongly denies violating any laws or failing to pay any wages and contends it complied with all applicable laws.

2. WHAT DOES IT MEAN THAT THE ACTION HAS SETTLED?

So far, the Court has made no determination whether SIMA or Plaintiff is correct on the merits. In the meantime, Plaintiff and SIMA hired an experienced, neutral mediator in an effort to resolve the Action by negotiating an end to the case by agreement (settle the case) rather than continuing the expensive and time-consuming process of litigation. The negotiations were successful. By signing a lengthy written Settlement Agreement (“Agreement”) and agreeing to jointly ask the Court to enter a judgment ending the Action and enforcing the Agreement, Plaintiff and SIMA have negotiated a proposed Settlement that is subject to the Court’s Final Approval. Both sides agree the proposed Settlement is a compromise of disputed claims. By agreeing to settle, SIMA does not admit any violations or concede the merit of any claims. Plaintiff and Class Counsel strongly believe the Settlement is a good deal for you because they believe that: (1) SIMA has agreed to pay a fair, reasonable and adequate amount considering the strength of the claims and the risks and uncertainties of continued litigation; and (2) Settlement is in the best interests of the Class Members and Aggrieved Employees. The Court preliminarily approved the proposed Settlement as fair, reasonable and adequate, authorized the Notice, and scheduled a hearing to determine Final Approval.

3. WHAT ARE THE IMPORTANT TERMS OF THE PROPOSED SETTLEMENT?

1. SIMA Will Pay $600,000 as the Gross Settlement Amount (Gross Settlement). SIMA has agreed to deposit the Gross Settlement into an account controlled by the Administrator of the Settlement. The Administrator will use the Gross Settlement to pay the Individual Class Payments, Individual PAGA Payments, Class Representative Service Payment, Class Counsel’s attorneys’ fees and expenses, the Administrator’s expenses, and penalties to be paid to the California Labor and Workforce Development Agency (“LWDA”). Assuming the Court grants Final Approval, SIMA will fund the Gross Settlement not more than 14 days after the Judgment entered by the Court become final. The Judgment will be final on the date the Court enters Judgment, or a later date if Participating Class Members object to the proposed Settlement or the Judgment is appealed.




2. Court Approved Deductions from Gross Settlement. At the Final Approval Hearing, Plaintiff and/or Class Counsel will ask the Court to approve the following deductions from the Gross Settlement, the amounts of which will be decided by the Court at the Final Approval Hearing:




1. Up to $210,000 [35% of the Gross Settlement] to Class Counsel for attorneys’ fees and up to $20,000 for their litigation expenses. To date, Class Counsel have worked and incurred expenses on the Action without payment.




2. Up to $10,000 as a Class Representative Award for filing the Action, working with Class Counsel and representing the Class. A Class Representative Award will be the only monies Plaintiff will receive other than Plaintiff’s Individual Class Payment and any Individual PAGA Payment.




3. Up to $10,483.00 to the Administrator for services administering the Settlement.




4. Up to $40,000 for PAGA Penalties, allocated 75% to the LWDA PAGA Payment and 25% in Individual PAGA Payments to the Aggrieved Employees based on their PAGA Pay Periods.




Participating Class Members have the right to object to any of these deductions. The Court will consider all objections.




3. Net Settlement Distributed to Class Members. After making the above deductions in amounts approved by the Court, the Administrator will distribute the rest of the Gross Settlement (the “Net Settlement”) by making Individual Class Payments to Participating Class Members based on their Class Period Workweeks.




4. Taxes Owed on Payments to Class Members. Plaintiff and SIMA are asking the Court to approve an allocation of 25% of each Individual Class Payment to taxable wages (“Wage Portion”) and 75% to interest and statutory penalties (“Non-Wage Portion”). The Wage Portion is subject to withholdings and will be reported on IRS W-2 Forms. (SIMA will separately pay employer payroll taxes it owes on the Wage Portion.) The Individual PAGA Payments are counted as penalties rather than wages for tax purposes. The Administrator will report the Individual PAGA Payments and the Non-Wage Portions of the Individual Class Payments on IRS 1099 Forms.
   
   Although Plaintiff and SIMA have agreed to these allocations, neither side is giving you any advice on whether your Payments are taxable or how much you might owe in taxes. You are responsible for paying all taxes (including penalties and interest on back taxes) on any Payments received from the proposed Settlement. You should consult a tax advisor if you have any questions about the tax consequences of the proposed Settlement.




5. Need to Promptly Cash Payment Checks. The front of every check issued for Individual Class Payments and Individual PAGA Payments will show the date when the check expires (the void date). If you don’t cash it by the void date, your check will be automatically cancelled, and the monies will be deposited with the California Controller’s Unclaimed Property Fund in your name. If the monies represented by your check is sent to the Controller’s Unclaimed Property, you should consult the rules of the Fund for instructions on how to retrieve your money.




6. Requests for Exclusion from the Class Settlement (Opt-Outs). You will be treated as a Participating Class Member, participating fully in the Class Settlement, unless you notify the Administrator in writing, not later than April 25, 2025, that you wish to opt-out. The easiest way to notify the Administrator is to send a written and signed Request for Exclusion by the April 25, 2025 Response Deadline. The Request for Exclusion should be a letter from a Class Member or his/her/their representative setting forth a Class Member’s name, present address, telephone number, and a simple statement electing to be excluded from the Settlement. Excluded Class Members (i.e., Non-Participating Class Members) will not receive Individual Class Payments, but will preserve their rights to personally pursue wage and hour claims against SIMA.
   
   You cannot opt-out of the PAGA portion of the Settlement. Class Members who exclude themselves from the Class Settlement (Non-Participating Class Members) remain eligible for Individual PAGA Payments and are required to give up their right to assert PAGA claims against SIMA based on the PAGA Period facts alleged in the Action.




7. The Proposed Settlement Will be Void if the Court Denies Final Approval. It is possible the Court will decline to grant Final Approval of the Settlement or decline enter a Judgment. It is also possible the Court will enter a Judgment that is reversed on appeal. Plaintiffs and SIMA have agreed that, in either case, the Settlement will be void: SIMA will not pay any money and Class Members will not release any claims against SIMA.




8. Administrator. The Court has appointed a neutral company, Simpluris (the “Administrator”) to send the Notice, calculate and make payments, and process Class Members’ Requests for Exclusion. The Administrator will also decide Class Member Challenges over Workweeks, mail and re- mail settlement checks and tax forms, and perform other tasks necessary to administer the Settlement. The Administrator’s contact information is contained in FAQ 9.




9. Participating Class Members’ Release. After the Judgment is final and SIMA has fully funded the Gross Settlement and separately paid all employer payroll taxes, Participating Class Members will be legally barred from asserting any of the claims released under the Settlement. This means that unless you opted out by validly excluding yourself from the Class Settlement, you cannot sue, continue to sue or be part of any other lawsuit against SIMA or related entities for wages based on the Class Period facts and PAGA penalties based on PAGA Period facts, as alleged in the Action and resolved by this Settlement.




The Participating Class Members will be bound by the following release: All Participating Class Members, on behalf of themselves and their respective former and present representatives, agents, attorneys, heirs, administrators, successors and assigns, release Released Parties from (a) all claims for violations of California Labor Code sections 201-203, 204, 206, 206.5, 216, 218.5, 218.6, 221, 225.5, 226, 226.3, 226.6, 226.7, 229, 233, 234, 256, 350, 351, 353, 356, 432, 450, 510, 511, 512, 515, 558, 558.1, 1174, 1174.5, 1175, 1182.11, 1182.12, 1185, 1194, 1194.2, 1195, 1197, 1197.1, 1197.5, 1198.5, 1199, 2751 and 2802), violations of the applicable Wage Orders issued by the California Industrial Welfare Commission as Wage Order 5-2001, including, but not limited to, Sections 3, 4, 5, 7, 8, 9(A), 11, 12, 13 and 20, violations of the unlawful business practice provisions of California Business and Professions Code § 17000, et seq., and violations of related common law, and from (b) all claims that were alleged, or reasonably could have been alleged, based on the Class Period facts stated in the Operative Complaint and/or ascertained in the course of the Action, including, without limitation, any and all claims for: 1. failure to pay wages, including minimum wage and overtime; 2. failure to provide rest periods; 3. failure to provide meal periods; 4. failure to pay reporting time and other wages; 5. failure to timely pay compensation due and owing; 6. failure to provide accurate itemized wage statements; 7. unfair business practices; and 8. penalties pursuant to Labor Code § 2699. Except as set forth in Section 5.3 of this Agreement, Participating Class Members do not release any other claims, including claims for vested benefits, wrongful termination, violation of the Fair Employment and Housing Act, unemployment insurance, disability, social security, workers’ compensation or claims based on facts occurring outside the Class Period.




10. Aggrieved Employees’ PAGA Release. After the Court’s judgment is final, and SIMA has paid the Gross Settlement (and separately paid the employer-side payroll taxes), all Aggrieved Employees will be barred from asserting PAGA claims against SIMA, whether or not they exclude themselves from the Settlement. This means that all Aggrieved Employees, including those who are Participating Class Members and those who opt-out of the Class Settlement, cannot sue, continue to sue or participate in any other PAGA claim against SIMA or its related entities based on the PAGA Period facts alleged in the Action and resolved by this Settlement.




The Aggrieved Employees’ Releases for Participating and Non-Participating Class Members are as follows: All Participating and Non-Participating Class Members who are Aggrieved Employees are deemed to release, on behalf of themselves and their respective former and present representatives, agents, attorneys, heirs, administrators, successors and assigns, the Released Parties from (a) all claims for PAGA penalties based on any violations of California Labor Code sections 201-203, 204, 206, 206.5, 216, 218.5, 218.6, 221, 225.5, 226, 226.3, 226.6, 226.7, 229, 233, 234, 256, 350, 351, 353, 356, 432, 450, 510, 511, 512, 515, 558, 558.1, 1174, 1174.5, 1175, 1182.11, 1182.12, 1185, 1194, 1194.2, 1195, 1197, 1197.1, 1197.5, 1198.5, 1199, 2751 and 2802), violations of the applicable Wage Orders issued by the California Industrial Welfare Commission as Wage Order 5-2001, including, but not limited to, Sections 3, 4, 5, 7, 8, 9(A), 11, 12, 13 and 20, violations of the unlawful business practice provisions of California Business and Professions Code § 17000, et seq., and violations of related common law, and from (b) all claims for PAGA penalties that were alleged, or reasonably could have been alleged, based on the PAGA Period facts stated in the Operative Complaint, and/or in the PAGA Notice and/or ascertained in the course of the Action. including, without limitation, PAGA penalties for: 1. failure to pay wages, including minimum wage and overtime; 2. failure to provide rest periods; 3. failure to provide meal periods; 4. failure to pay reporting time and other wages; 5. failure to timely pay compensation due and owing; 6. failure to provide accurate itemized wage statements; and 7. unfair business practices.

4. HOW WILL THE ADMINISTRATOR CALCULATE MY PAYMENT?

1. Individual Class Payments. The Administrator will calculate Individual Class Payments by (a) dividing the Net Settlement Amount by the total number of Workweeks worked by all Participating Class Members, and (b) multiplying the result by the number of Workweeks worked by each individual Participating Class Member.

2. Individual PAGA Payments. The Administrator will calculate Individual PAGA Payments by (a) dividing $10,000 by the total number of PAGA Pay Periods worked by all Aggrieved Employees and (b) multiplying the result by the number of PAGA Pay Periods worked by each individual Aggrieved Employee.

3. Workweek/Pay Period Challenges. The number of Class Workweeks you worked during the Class Period and the number of PAGA Pay Periods you worked during the PAGA Period, as recorded in SIMA’s records, are stated in the first page of the Notice. You have until April 21, 2025 to challenge the number of Workweeks and/or PAGA Pay Periods credited to you. You can submit your challenge by signing and sending a letter to the Administrator via mail, email or fax. FAQ 9 has the Administrator’s contact information.

You need to support your challenge by sending copies of pay stubs or other records. The Administrator will accept SIMA’s calculation of Workweeks and/or PAGA Pay Periods based on SIMA’s records as accurate unless you send copies of records containing contrary information. You should send copies rather than originals because the documents will not be returned to you. The Administrator will resolve Workweek and/or PAGA Pay Period challenges based on your submission and on input from Class Counsel (who will advocate on behalf of Participating Class Members) and SIMA’s Counsel. The Administrator’s decision is final. You can’t appeal or otherwise challenge its final decision.

5. HOW WILL I GET PAID?

1. Participating Class Members. The Administrator will send, by U.S. mail, a single check to every Participating Class Member (i.e., every Class Member who doesn’t opt-out) including those who also qualify as Aggrieved Employees. The single check will combine the Individual Class Payment and the Individual PAGA Payment.

2. Non-Participating Class Members. The Administrator will send, by U.S. mail, a single Individual PAGA Payment check to every Aggrieved Employee who opts out of the Class Settlement (i.e., every Non-Participating Class Member).

Your check will be sent to the same address as the Notice. If you change your address, be sure to notify the Administrator as soon as possible. FAQ 9 has the Administrator’s contact information.

6. HOW DO I OPT-OUT OF THE CLASS SETTLEMENT?

Submit a written and signed letter with your name, present address, telephone number and a simple statement that you do not want to participate in the Settlement. The Administrator will exclude you based on any writing communicating your request be excluded. Be sure to personally sign your request, identify the Action as Arriaga v. 1576 Mission Drive, LLC, Santa Barbara County Superior Court Case No. 23CV05580, and include your identifying information (full name, address, telephone number, approximate dates of employment and social security number for verification purposes). You must make the request yourself. If someone else makes the request for you, it will not be valid. The Administrator must be sent your request to be excluded by April 25, 2025 or it will be invalid. FAQ 9 has the Administrator’s contact information.

7. HOW DO I OBJECT TO THE SETTLEMENT?

Only Participating Class Members have the right to object to the Settlement. Before deciding whether to object, you may wish to see what Plaintiff and SIMA are asking the Court to approve. At least 16 court days before the May 1, 2025 Final Approval Hearing, Class Counsel and/or Plaintiff will file in Court (1) a Motion for Final Approval that includes, among other things, the reasons why the proposed Settlement is fair, and (2) a Motion for Fees, Litigation Expenses and Service Award stating (i) the amount Class Counsel is requesting for attorneys’ fees and litigation expenses; and (ii) the amount Plaintiff is requesting as a Class Representative Service Award. Upon reasonable request, Class Counsel (whose contact information is in FAQ 9) will send you copies of these documents at no cost to you. You can also view them here.

A Participating Class Member who disagrees with any aspect of the Agreement, the Motion for Final Approval and/or Motion for Fees, Litigation Expenses and Service Award may wish to object, for example, that the proposed Settlement is unfair, or that the amounts requested by Class Counsel or Plaintiff are too high or too low. The deadline for sending written objections to the Administrator is April 25, 2025. Be sure to tell the Administrator what you object to, why you object and any facts that support your objection. Make sure you identify the Action as Arriaga v. 1576 Mission Drive, LLC, Santa Barbara County Superior Court Case No. 23CV05580, and include your name, current address, telephone number and approximate dates of employment for SIMA and sign the objection. FAQ 9 has the Administrator’s contact information.

Alternatively, a Participating Class Member can object (or personally retain a lawyer to object at your own cost) by attending the Final Approval Hearing. You (or your attorney) should be ready to tell the Court what you object to, why you object, and any facts that support your objection. See FAQ 8 (immediately below) for specifics regarding the Final Approval Hearing.

8. CAN I ATTEND THE FINAL APPROVAL HEARING?

You can, but don’t have to, attend the Final Approval Hearing on May 1, 2025 at 8:30 a.m. in Department 4 of the Santa Barbara County Superior Court, located at 312-C East Cook Street, Santa Maria, CA 93454. At the Hearing, the judge will decide whether to grant Final Approval of the Settlement and how much of the Gross Settlement will be paid to Class Counsel, Plaintiff and the Administrator. The Court will invite comment from objectors, Class Counsel and Defense Counsel before making a decision. You can attend (or hire a lawyer to attend). Check the Court’s website for the most current information.

It’s possible the Court will reschedule the Final Approval Hearing. You should check this website beforehand or contact Class Counsel to verify the date and time of the Final Approval Hearing.

9. HOW CAN I GET MORE INFORMATION?

The Agreement sets forth everything SIMA and Plaintiff have promised to do under the proposed Settlement. The easiest way to read the Agreement, the Judgment or any other Settlement documents is to go here.

You can also telephone or send an email to Class Counsel or the Administrator using the contact information listed below, or consult the Superior Court website by going to https://www.santabarbara.courts.ca.gov and entering the Case Number for the Action, Case No. 23CV05580. You can also make an appointment to personally review court documents in the Clerk’s Office at the courthouse by calling (805) 614-6414.

DO NOT TELEPHONE THE SUPERIOR COURT TO OBTAIN INFORMATION ABOUT THE SETTLEMENT.

10. WHAT IF I LOSE MY SETTLEMENT CHECK?

If you lose or misplace your settlement check before cashing it, the Administrator will replace it as long as you request a replacement before the void date on the face of the original check. If your check is already void, you should consult the Unclaimed Property Fund for instructions on how to retrieve the funds.

11. WHAT IF I CHANGE MY ADDRESS?

To receive your check, you should immediately notify the Administrator if you move or otherwise change your mailing address.