Frequently Asked Questions

1. What is this proposed Settlement about?

The original Complaint in this Action was filed on June 9, 2022 against Defendant RH. The Complaint in this Action contains 12 causes of action alleging: (1) declaratory relief; (2) failure to pay minimum wages; (3) failure to pay overtime wages; (4) failure to provide meal breaks; (5) failure to provide rest breaks; (6) failure to pay all wages upon discharge; (7) failure to maintain adequate records; (8) failure to reimburse for necessary business expenses; (9) unlawful deductions from wages; (10) failure to provide adequate wage statements; (11) unfair competition; and (12) intentional misclassification. As part of this Class Settlement, and for settlement purposes only, the Parties have agreed that Plaintiffs Mario Erazo and Pedro Hernandez (collectively, “Plaintiffs”) may file a First Amended Complaint to add a claim for civil penalties pursuant to the Labor Code Private Attorneys General Act of 2004 (Lab. Code § 2698, et seq.; “PAGA”).

Plaintiffs allege these Labor Code violations based on their theory that they and other drivers and helpers who delivered RH merchandise on behalf of Third-Party Logistics Providers in California were improperly classified as independent contractors instead of employees.

RH has agreed to settle the case as part of a compromise with Plaintiffs following a mediation with an experienced and well-respected class action mediator. The proposed Settlement is not an admission of liability by RH. Throughout the course of litigation in the Action, RH has denied any liability or wrongdoing, or that any compensable injury arose out of any of the matters alleged. RH contends that all of its practices with respect to drivers and helpers comply and have complied with all applicable laws and regulations, and that drivers and helpers were properly classified as independent contractors. RH additionally denies all derivative claims for minimum and overtime wages, meal and rest breaks, waiting time penalties, itemized wage statements, and reimbursement of necessary business expenses. RH further contends that it did not and does not engage in unfair competition, business acts, or practices; that it did not and does not engage in any willful, knowing, or intentional violations of any law or regulation as to drivers or helpers; or otherwise engage in any unlawful conduct with respect to any of the claims alleged in the Action. By agreeing to settle, RH is not admitting liability on any of the factual allegations or claims in the Action or that it can or should proceed as a class or PAGA representative action.

Counsel for Plaintiffs, who are the attorneys approved by the Court to represent the class for purposes of the Settlement (“Class Counsel”), believe that the proposed Settlement is in the best interests of the Class Members. Further proceedings would be expensive and take a long time. Moreover, no one can predict the precise outcome of the disputed issues in this case. Therefore, Class Counsel believe the proposed Settlement is fair, adequate, reasonable, and in the best interests of Class Members.

Under the proposed Class Settlement, RH has agreed to make payments (“Class Settlement Awards”) to all Class Members who do not opt out of the Settlement (“Settlement Class Members”). The Class Settlement Awards will be based on the number of estimated workweeks that Settlement Class Members delivered RH merchandise on behalf of Third-Party Logistics Providers (i.e., freight forwarders) in California during the Class Period (“Workweeks”).

The Court has preliminarily approved the proposed Class Settlement, meaning that it has determined only that there is sufficient evidence to suggest that it might be fair, reasonable, and adequate. Any final determination of those issues will be made at the Final Approval Hearing.

2. What are the proposed Settlement terms?

Plaintiffs and Defendants have agreed to settle the underlying class and PAGA claims in exchange for a Gross Settlement Amount of $6,000,000. This amount is inclusive of: (1) up to $2,100,000 in attorneys’ fees and up to $50,000 in litigation costs and expenses; (2) individual service payments to each of the Plaintiffs for a total aggregate sum of up to $10,000; (3) a $180,000 settlement of claims under PAGA; (4) reasonable Settlement Administrator’s fees and expenses, not to exceed $24,623.00; and (5) the employer-side portion of withholdings and taxes. After deducting the above payments, a total of approximately $3,490,325.46 (the “Net Settlement Sum”) will be allocated to individual settlement payments (“Class Settlement Awards”) to all Class Members who do not opt out (“Settlement Class Members”). Further details regarding the allocation of the Gross Settlement Amount are below:

Fees and Expense Award to Class Counsel: Subject to the Court’s approval, Class Counsel (Marlin & Saltzman LLP and its attorneys Alan S. Lazar, Cody R. Kennedy, Stephen P. O’Dell, and Tatiana Avakian and The Hamideh Firm, P.C. and its attorney Bassil Hamideh) seek up to 35% of the Gross Settlement Amount (i.e., up to $2,100,000) as their fees for prosecuting this case and reimbursement of actual litigation costs and expenses not to exceed $50,000. You are not personally responsible for any of Class Counsel’s attorneys’ fees, costs, or expenses. These amounts will be paid directly from the Gross Settlement Amount.

Service Payments: The proposed Settlement provides for a Service Payment of up to $5,000 each to Plaintiffs Mario Erazo and Pedro Hernandez (for a total of $10,000), subject to Court approval. These payments are for their services as plaintiffs in the Action and for their general release of all claims against RH.

PAGA Settlement Amount: The proposed Settlement provides for a payment of $180,000 for resolution of the PAGA claims alleged in the Action. Of that amount, 75% ($135,000) shall be paid to the Labor and Workforce Development Agency (“LWDA”) and 25% ($45,000) shall form the PAGA Fund to be distributed to PAGA Group Members. PAGA Group Members are drivers and helpers who were cleared to deliver RH merchandise on behalf of Third-Party Logistics Providers in California at any time during the PAGA Period (June 9, 2021 to June 12, 2024). All PAGA Members will receive a proportional share of the $45,000 PAGA Fund and be bound by the PAGA portion of the Settlement, regardless of whether they opt out of the class portion of the Settlement.

Settlement Administration Costs: The proposed Settlement provides for a payment not to exceed $24,623.00 to the Settlement Administrator, Simpluris, Inc., for its services in mailing the Notice of Settlement of Class Action and administering the Settlement.

Class Settlement Awards to Settlement Class Members: Settlement Class Members will each be paid a Class Settlement Award, which is their pro-rata share of the Net Settlement Sum (made up of the Drivers Class Fund and the Helpers Class Fund), calculated as follows:

Drivers Class Fund: The Drivers Class Fund is approximately 50% of the Net Settlement Sum. For those Class Members who were cleared to work as drivers delivering RH merchandise on behalf of Third-Party Logistics Providers in California during the Class Period, the Settlement Administrator will calculate the total number of Drivers Workweeks for each driver based on DispatchTrack Data. The Drivers Class Fund will be divided by the aggregate total number of Drivers Workweeks resulting in the “Workweek Value For Drivers.” Each Class Settlement Award for Drivers will be calculated by multiplying each individual driver’s total number of Drivers Workweeks by the Workweek Value for Drivers. The wage portion of each driver’s Class Settlement Award will be reduced by their share of any payroll taxes.

Helpers Class Fund: The Helpers Class Fund is approximately 50% of the Net Settlement Sum. The Helpers Class Fund will be divided equally among all Class Members cleared to work as helpers and/or third-men delivering RH merchandise on behalf of Third-Party Logistics Providers in California during the Class Period. The wage portion of each helper’s Class Settlement Award will be reduced by their share of any payroll taxes.

Taxes on Settlement Payments. IRS Forms W-2 and 1099 will be distributed to Settlement Class Members and the appropriate taxing authorities reflecting the payments they receive under the Settlement. Settlement Class Members should consult their tax advisors concerning the tax consequences of the payments they receive under the Settlement. For purposes of this Settlement, 20% of each Class Settlement Award will be allocated as wages for which IRS Forms W-2 will be issued, and 80% of each Class Settlement Award will be allocated as non-wages for which IRS Forms 1099-MISC will be issued. Additionally, any settlement payments from the PAGA Fund will be allocated as penalties, for which IRS Forms 1099-MISC will be issued.

3. What are my rights and options?

1. You can exclude yourself from the Class Settlement: If you do not want a Class Settlement Award and do not want to be bound by any of the proposed Class Settlement’s terms, including the release of the Released Class Claims (described below), you must make a timely written Request for Exclusion. Your Request for Exclusion must contain (a) the name of the Action (Erazo, et al. v. Restoration Hardware, Inc.), (b) your full name, signature, and address, (c) the words “Request for Exclusion” at the top of the document, and (d) the statement: “I wish to be excluded from the Class Settlement of this case.”

You may use the Request for Exclusion form that was included with the Notice. Your Request for Exclusion must be mailed to the Settlement Administrator and must be postmarked by September 23, 2024. You should not request exclusion if you wish to receive money from the class portion of the Settlement.

You do not have the right to be excluded from the PAGA portion of the Settlement, whether or not you exclude yourself from the class portion of the Settlement.

2. You can object to the Class Settlement: You can object to the class portion of the Settlement before the Court grants final approval of it. To object in writing, you must submit a written statement to the Settlement Administrator by September 23, 2024. To be valid, your written objection must contain: (a) a reference to the name and case number of the Action (Erazo, et al. v. Restoration Hardware, Inc., San Bernardino Superior Court Case No. CIVSB2211655); (b) your full name, signature, address, and telephone number; (c) a written statement of the grounds for your objection to the Class Settlement; and (d) a written statement of whether you intend to appear at the Final Approval Hearing and whether you are represented by counsel.

Alternatively, you 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 question 5 for specifics regarding the Final Approval Hearing.

You are not required to appear, either personally or through counsel, at the Final Approval Hearing in order for your written objection to be considered.

You may object to the class portion of the Settlement only if you do NOT submit a Request for Exclusion (option 1 above). If you submit both a valid Request for Exclusion as well as an objection to the Class Settlement, your objection will not be considered because you will be excluded from the Class Settlement and will be unable to object to it.

You do not have the right to object to the PAGA portion of the Settlement, whether or not you object to the class portion of the Settlement.

3. If you are or were a Driver, you can dispute the number of your Workweeks during the Class Period: If you are or were a Driver, a Notice of Eligible Workweeks was included in the Notice. It provides your number of Workweeks during the Class Period according to information provided by RH. If you were a driver cleared to deliver RH merchandise on behalf of a Third-Party Logistics Provider, Workweeks are calculated by relying on DispatchTrack Data (“Drivers Workweeks”).

If you are a Driver and you do not agree with the number of your Workweeks during the Class Period shown on the form, you may dispute the number by completing the Notice of Eligible Workweeks form and mailing it to the Settlement Administrator together with supporting documentation, if any, by September 23, 2024.

If you are or were a Helper cleared to deliver RH merchandise on behalf of a Third-Party Logistics Provider, you and all other Class Members who are helpers will receive an equal number of Workweeks for the Class Period (“Helpers Workweeks”). If you were cleared to deliver RH merchandise on behalf of a Third-Party Logistics Provider as both a Driver and a Helper during the Class Period, you will receive a combined total number of Drivers Workweeks and Helpers Workweeks.

4. You can do nothing: You can do nothing. If you do nothing, you will be bound by the proposed Settlement terms and you will be entitled to receive a Class Settlement Award as described above after the Court grants final approval of the Settlement.

You should also correct your mailing address if it is not correct or if you move before receiving your Class Settlement Award by calling the Settlement Administrator at 1-844-804-1469.

Irrespective of which of the above options you choose, to the extent you are a PAGA Group Member, you will also receive a PAGA Settlement Award, regardless of whether you exclude yourself from the Class Settlement, object to the Class Settlement, dispute the number of your Workweeks (for Drivers), or do nothing.

4. What claims am I releasing by participating in the Class Settlement?

In exchange for the consideration given by RH in the proposed Settlement, all Class Members who do not opt out of the Class Settlement (the Settlement Class Members) will expressly release, waive, and discharge, and will be deemed to have released, waived, and discharged, all Released Class Claims against all Released Parties.

“Released Class Claims” means all claims, debts, liabilities, demands, obligations, damages, and actions or causes of action of any kind arising during the Class Period, which were alleged in the Complaints or that could have been alleged against any of the Released Parties based on the factual allegations in the Complaints including claims under California Labor Code sections 200, 201, 202, 203, 226, 226.2, 226.3, 226.7, 226.8, 510, 512, 1174, 1182.11, 1182.12, 1194, 1194.2, 1197, 1198, 2802, and 3357; IWC Wage Orders, including Wage Order No. 9-2001, including sections 3, 4, 7, 8, 9, 11, and 12 thereof; California Code of Civil Procedure sections 1021.5 and 1060; and California Business and Professions Code section 17200 et seq. related only to the above claims. Expressly excluded from the Released Class Claims are claims for wages in Workers’ Compensation and Unemployment Insurance benefits cases, and claims for benefits under the Employee Retirement Income Security Act of 1974 (ERISA).

“Released Parties” means RH and the Released Third-Party Logistics Providers, and each of their respective present, former, and future parents, subsidiaries, affiliates, divisions, corporations in common control, predecessors, successors, and assigns, and each of their (including RH’s and the Third-Party Logistics Providers’) respective present, past and future officers, directors, employees, partners (both general and limited), members, shareholders, agents, attorneys, accountants, auditors, consultants, insurers, and any other successors, assigns, and legal representatives.

The Released Third-Party Logistics Providers are Allegiant Logistics, Apogee Logistics, Distribution Solutions, Inc. (or DSI), FGO Delivers, LLC dba FGO Logistics and FGO CA, LLC, Pillar Logistics LLC, and Premier Last Mile, LLC (or PLM), which are third-party logistics providers RH contracted with for the delivery of RH merchandise during the Class Period.

All Settlement Class Members intend and are deemed to intend that this Settlement shall be effective as a bar to any and all Released Class Claims against any and all Released Parties. All Settlement Class Members further agree not to sue or otherwise make a claim against any of the Released Parties arising out of or related to any of the Released Class Claims. All Settlement Class Members further agree that they shall be barred from filing any actions, claims, complaints, or proceedings regarding the Released Class Claims with the California Division of Labor Standards Enforcement, or from initiating any other proceedings against any of the Released Parties regarding any of the Released Class Claims. All Settlement Class Members further agree that their release, waiver, and relinquishment of the Released Class Claims shall preclude them from participating in any judgment or settlement of any of the Released Class Claims in any other class, collective, or representative action.

Regardless of whether you are a Settlement Class Member or have opted out of the Class Settlement, if you are a PAGA Group Member (defined above), you will be deemed to have released, waived, and discharged, all Released PAGA Claims against all Released Parties.

“Released PAGA Claims” means all claims for civil penalties pursuant to PAGA that arose during the PAGA Period, which were alleged in the Complaints or the PAGA Notice, or that could have been alleged based on the factual allegations in the Complaints or PAGA Notice, against any of the Released Parties, for alleged violations of California Labor Code sections 201, 202, 203, 204, 223, 226, 226.2, 226.3, 226.4, 226.7, 226.8, 256, 510, 512, 558, 1174, 1174.5, 1182.11, 1182.12, 1193.5, 1193.6, 1194, 1194.2, 1194.5, 1195, 1197, 1198, 2802, and 2698, et seq.; IWC Wage Orders, including Wage Order No. 9-2001, including sections 3, 4, 7, 8, 9, 11, and 12 thereof.

All PAGA Group Members intend and are deemed to intend that this Settlement shall be effective as a bar to any and all Released PAGA Claims against any and all Released Parties. All PAGA Group Members further agree that they shall be barred from bringing, joining, or otherwise participating in a PAGA representative action or otherwise making, joining, or otherwise participating in a claim against any of the Released Parties for any of the Released PAGA Claims.

5. When is the next Court hearing?

A Final Approval Hearing will be held before the Honorable Jessica Morgan in Department S26 of the Superior Court of California, County of San Bernardino, located at the San Bernardino Justice Center, 247 West Third Street, San Bernardino, California 92415-0210, on October 15, 2024, at 8:30 a.m. to determine whether the Settlement is fair, reasonable, and adequate. Judge Morgan will be asked to approve the plan for distributing the Class Settlement Awards, the Fee and Expense Award to Class Counsel, the Service Payments to Plaintiffs, the PAGA Settlement Amount, and the Settlement Administration Costs to the Settlement Administrator. A motion for final approval of these items should be on file with the Court no later than September 20, 2024, and will be available for review after that date. This hearing may be continued without further notice to Class Members. It is not necessary for you to appear at this hearing, but you may do so if you wish.

6. What if I need more information?

Capitalized terms in the Notice have the same meaning they are given in the Class Action and PAGA Settlement Agreement and Release (“Agreement”), filed with the San Bernardino Superior Court on June 12, 2024, as an attachment to Plaintiff’s Motion for Preliminary Approval of Class Action Settlement. For the precise terms and conditions of the Settlement, you should consult the detailed Agreement and the Preliminary Approval Order, which is also on file with the Court and is available here. If you have any questions, you can contact the Settlement Administrator at 1-844-804-1469. You can also contact Class Counsel:

Alan S. Lazar (alazar@marlinsaltzman.com)
Cody R. Kennedy (ckennedy@marlinsaltzman.com)
Stephen P. O’Dell (sodell@marlinsaltzman.com)
Tatiana G. Avakian (tavakian@marlinsaltzman.com)
MARLIN & SALTZMAN, LLP
29800 Agoura Road, Suite 210
Agoura Hills, California 91301
Telephone: 818.991.8080
Facsimile: 818.991.8081

Bassil A. Hamideh (bhamideh@hamidehfirm.com)
THE HAMIDEH FIRM, PC
1801 Century Park East, Suite 2400
Los Angeles, California 90067
Telephone: 310.556.9687
Facsimile: 310.733.5699

Please Do Not Contact The Court For Information
About This Settlement