You received the notice because RCM’s business records indicate that you have worked for RCM in California at some point between March 1, 2020 and March 7, 2023 as a non-exempt nurse assigned to work at COVID-19 testing or vaccination sites for San Bernardino County (including Arrowhead Regional Medical Center), LAUSD or Ginkgo in California. All current and former RCM employees who fall within this category are known as Class Members.

The Notice is to let you know that the parties in Grady v. RCM Technologies, Inc., pending in the United States District Court for the Central District of California, as Case No. 5:22-cv-00842-JLS-SHK, have reached a Class Action Settlement. Under applicable law, a Class Action Settlement must be reviewed and approved by a judge. On November 13, 2024, 2024, Judge Josephine L. Staton preliminarily approved the terms of this proposed Settlement and ordered the notice to be mailed to all Class Members. The Court will hold a Final Fairness Hearing on the proposed Settlement on March 21, 2025 at 10:30 a.m. PT (originally February 21, 2025).  The notice explains your rights to share in the Settlement or to exclude yourself (“opt out”).

Plaintiff claims on behalf of herself and others similarly situated that RCM violated the California Labor Code by failing to provide off-duty meal and rest breaks, failing to pay regular and overtime wages for alleged off-the-clock work, failing to pay all wages due timely and upon termination, failing to maintain accurate employment records, and failing to provide accurate wage statements. Plaintiff also seeks to recover civil penalties under the Private Attorneys General Act (“PAGA”), Cal. Labor Code § 2698, et seq. RCM denies these allegations.

Barbara Grady is the Plaintiff and Class Representative. RCM Technologies (USA), Inc. (erroneously named as RCM Technologies, Inc.) is the Defendant.

RCM entered into the Settlement as a compromise in order to finally, fully and completely resolve the dispute and avoid protracted litigation. RCM denies the allegations in the case, and is not giving up its right to defend itself against any of the allegations involved in the lawsuit if this Settlement fails for any reason.

The Total Settlement Amount is $1,658,410, which will be allocated approximately as follows: (1) $1,025,206.75 to the Net Settlement Amount to be distributed to participating Class Members and PAGA Employees; (2) $124,380.75 to the California Labor Workforce Development Agency for its statutory share of the claims for civil penalties under PAGA; (3) $5,000 to Plaintiff Barbara Grady for the class representative service payment; (4) up to $414,602.50 for Class Counsel's attorneys' fees and up to $50,000 in costs; and (5) an estimated $39,220 for the Settlement Administrator's costs. Defendant will pay its share of applicable employer-side payroll taxes on the wage portion of the Settlement separately from the Total Settlement Amount, and its own attorneys' fees and costs.

Individual Class Settlement Payments from the Net Settlement Amount. The amount that you will receive from the Net Settlement Amount will be based on the number of shifts you worked at COVID-19 testing and vaccination sites at San Bernardino County (including Arrowhead Medical Center), LAUSD, or Ginkgo in California between March 1, 2020 and March 7, 2023 (the “Class Period”), as compared to other participating Class Members, as shown by RCM’s records. The distribution formula is based on number of Adjusted Workshifts after applying a multiplier for each client to account for different shift lengths and other relevant client-specific facts and circumstances, and is set forth in the Settlement Agreement. YOU DO NOT NEED TO SUBMIT A CLAIM FORM IN ORDER TO RECEIVE YOUR SHARE OF THE SETTLEMENT.

Individual PAGA Payment from the PAGA Fund. “PAGA” refers to the Private Attorneys General Act, Cal. Labor Code §2698, et seq. For purposes of this Settlement, “PAGA Employees” means the subset of Class Members who worked as nurses for RCM assigned to the above-specified client sites between July 22, 2020 and March 7, 2023 (PAGA Period). As required by law, 75% of the PAGA Fund ($124,380.75) will be distributed to the California Labor and Workforce Development Agency ("LWDA") as civil penalties and the remaining 25% of the PAGA Fund ($41,460.25) will be distributed to the PAGA Employees on a pro rata basis based on the number of pay periods worked during the PAGA Period. PAGA Employees cannot exclude themselves from the Individual PAGA Payment portion of the Settlement. If the Court approves the Settlement and you fall within the definition of PAGA Employee, you will receive an Individual PAGA Payment (which will be considered miscellaneous income reported on an IRS Form 1099, without withholdings).

The number of shifts worked during the Class Period (March 1, 2020 to March 7, 2023) and the number of weeks worked during the PAGA Period (July 22, 2020 to March 7, 2023), per RCM's business records, were included in your Notice, along with an estimations of your settlement share and individual PAGA payment.

If you disagree with whether you are a current or former employee, or the number of your Adjusted Workshifts during the Class Period, or the number of weeks you worked during PAGA Period, as provided on the Notice, the deadline to submit a dispute was January 27, 2025, and has passed.

Individual Settlement Awards to Class Members will be taxed as follows: one-third (33%) of the award will be taxed as alleged unpaid wages subject to all applicable tax withholdings, for which IRS Form W-2 will be issued; one-third (33%) will be taxed as alleged unpaid interest for which the appropriate IRS Form 1099 will be issued; and one-third (33%) will be taxed as alleged unpaid penalties for which IRS Form 1099-MISC will be issued. Individual PAGA Awards paid to the PAGA Employees will be taxed as alleged unpaid civil penalties for which an IRS Form 1099-MISC shall be issued. The Settlement Administrator will issue W-2 and 1099 forms, to the extent required by law. You should speak with an accountant or other tax professional about any tax implications of your Settlement checks.

Everyone who participates in the settlement will fully and finally release and discharge the Released Parties from all liability for the Released Claims from March 1, 2020 to March 7, 2023. “Released Parties” means RCM and its affiliated companies, owners, parents, members, subsidiaries, related companies and business concerns, past and present, including successors and predecessors, and each of them, as well as each of their clients for whom Class Members performed services, insurers, partners, trustees, directors, shareholders, officers, agents, attorneys, servants and employees, past and present, and each of them. "Released Claims" means all claims under state or local law, whether statutory, common law, or administrative law, whether in law or equity, for the claims that were pled in the Complaint, based on or arising out of the factual allegations therein, during the Class Period, including claims for failure to pay minimum and overtime wages, failure to authorize and permit required rest breaks and provide required meal periods, failure to maintain accurate employment records, failure to timely pay wages during employment and upon separation, and failure to furnish accurate, itemized wage statements, as well as claims for alleged violation of California’s Unfair Competition Law, Cal. Bus. & Professions Code §§ 17200, et seq., and claims seeking civil penalties under the Private Attorneys General Act, Cal. Labor Code §2698, et seq.

This means that if you do not exclude yourself from the Settlement pursuant to the procedures explained in Question 11, you will release the Released Claims described in the preceding paragraph that you may have against RCM and the Released Parties during the period of time March 1, 2020 to March 7, 2023.

In addition, if you are a PAGA Employee, as described in Question 6, you will release all PAGA Claims that were actually alleged or could have been alleged based upon the facts set forth in the Complaint in this action by the named Plaintiff on behalf of the State of California, herself, and the PAGA Employees.

No, currently, there is no trial date. If the settlement is not approved by the Court, the parties may proceed to trial.

The deadline to request exclusion from the Settlement was January 27, 2025, and has passed.

The deadline to object to the Settlement was January 27, 2025, and has passed.

Objecting is simply telling the Court that you do not like something about the Settlement. You can object only if you stay in the Settlement Class. Excluding yourself is telling the Court that you do not want to be part of the Settlement Class and the Settlement. If you exclude yourself, you have no basis to object because the case no longer affects you. If you submit both an objection and a request for exclusion, the request for exclusion will be deemed controlling.

The attorneys representing the named Plaintiff and the Class Members who participate in the Settlement are: SCHNEIDER WALLACE COTTRELL KONECKY LLP, Joshua Konecky, CA Bar No. 182897, 2000 Powell Street, Suite 1400, Emeryville, CA 94608. Phone: 415-421-7100; Fax: 415-421-7105; jkonecky@schneiderwallace.com.

Class Counsel will ask the Court for attorneys’ fees of up to 25% of the total settlement amount, as specified in Section 6 above. Class Counsel will also seek reimbursement from the Settlement Fund of actual expenses they incurred in pursuing the lawsuit, such as costs for filing fees, service of process costs, and mediation fees. Class Counsel will file an application to the Court no later than December 26, 2024 setting forth the attorneys’ fees and expenses they will be seeking from the total settlement amount for their work on behalf of the Class Members. You can obtain a copy of Class Counsel’s application for attorneys’ fees and expenses after December 26, 2024 by visiting the Important Documents page, checking the court case file (see Question 18), or contacting Class Counsel at 415-421-7100.

The Settlement also provides that the Class Representative Plaintiff may apply for a Service Award of up to $5,000 in recognition for the time, effort and risks she took in bringing the case on behalf of the Class. The Court may award less than this amount. Plaintiff will file an application to the Court no later than December 26, 2024 that discusses the basis of the request for this Service Award. You can obtain a copy of this application after December 26, 2024 by checking the court case file (see Question 18), visiting the Important Documents page, or by contacting Class Counsel at 415-421-7100.

The Court will hold a Final Approval hearing on March 21, 2025, at 10:30 a.m. PT (originally February 21, 2025) in Courtroom 8A, on the 8th Floor of the United States District Court for the Central District of California, 350 W. First Street, Los Angeles, CA 90012. At this hearing, the Court will consider whether the Settlement is fair, reasonable, and adequate. If there are objections, the Court will consider them. The Judge may listen to people who have previously asked in writing to speak at the hearing. The Judge may also decide how much to pay Class Counsel or whether to approve the requested Service Award for the named Plaintiff. After the hearing, the Court will decide whether to approve the Settlement. We do not know how long it will take for the Court to make its decision.

You do not have to come to the hearing. Class Counsel will answer questions that the Judge may have. But you are welcome to come at your own expense. You also may enter an appearance through an attorney if desired and have the attorney appear at the Final Approval hearing. If you submit an objection, you do not have to come to court to talk about it. As long as you submitted it on time and in accordance with the instructions in Question 12, the Court will consider it. You may pay your own lawyer to attend the hearing, but it is not necessary.

The deadline to request permission to speak at the hearing about the Settlement, the application for attorneys’ fees and costs, and/or the application for a service award was January 27, 2025, and has passed. Additionally, you cannot speak at the hearing if you exclude yourself from the Class.

For a more detailed statement of the matters involved in the Action and the Class Settlement, you may refer to the pleadings, the Joint Stipulation of Settlement of Class Action, and other papers filed in this action. The case file may be inspected at the Office of the Court Clerk, United States District Court, Central District of California, located at the Edward R. Roybal Federal Building & U.S. Courthouse, 255 East Temple Street, Room 180, Los Angeles, CA 90012, during the Court’s normal business hours. You may inspect the case file for both cases online using the Public Access to Court Electronic Records system (“PACER”), at https://pacer.uscourts.gov/. All inquiries by Class Members about this settlement should be directed to: info@GradyClassActionSettlement.com. Refer to the Grady v. RCM Class Action Settlement.

PLEASE DO NOT CALL THE COURT.