Nicholas & Tomasevic Secures Nearly $16 Million Settlement for Misclassified "Independent Contractors" Working as Franchisees for Matco Tools
Settlement is a win for misclassified workers in California
SAN FRANCISCO, June 8, 2022 /PRNewswire/ -- On April 29, 2022, Judge Orrick (N.D. Cal.) granted final approval of an independent contractor misclassification case with a gross settlement value of $15,766,024.90. The settlement resolves the certified claims of roughly 270 Matco Tools franchisees that Matco classified as "independent contractors" under their franchise agreements and denied the usual benefits under California law such as expense reimbursement, overtime, and wage statements.
After filing suit in January 2019, plaintiff successfully overcame a string of challenges to his California employment claims including that the franchise agreement called for arbitration in an out of state venue, that Ohio law applied to this dispute, that "franchisees" do not qualify for protection under California labor laws, and that he could not obtain certain penalties provided by California law. Plaintiff also successfully certified various components of his case, including whether he was properly classified as an independent contractor and not an employee under California's employment tests, despite heavy opposition.
The settlement provides substantial relief for the class of California Matco franchisees. On average, franchisees will receive $42,000 in value and more favorable contractual terms going forward.
Nicholas & Tomasevic attorneys Alex Tomasevic, Shaun Markley, and Ethan Litney were among the attorneys representing the certified class of franchisees working for Matco.
Mr. Markley is available for comment at [email protected] or (619) 325-0492.
CONTACT:
Shaun Markley
225 Broadway, 19th Floor
San Diego, CA 92101
(619) 325-0492 Telephone
[email protected]
SOURCE Nicholas & Tomasevic
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