Joseph Kimbo v. MXD Group, Inc., et al.,

Frequently Asked Questions 

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Questions

Answers

1. Why Did I Get A Notice?

You got a Notice because Defendants’ records indicate that you are or were a motor carrier owner who directly contracted with and provided transportation services to Ryder Last Mile, Inc. (f/k/a MXD Group, Inc.) and Ryder System, Inc. in California in your individual capacity or through a business entity at any time from December 12, 2014 through July 26, 2020.  If you did not contract with Ryder Last Mile, Inc. (f/k/a MXD Group, Inc.), you are receiving a Notice because Defendants’ records indicated that you are a non-owner driver and/or helper engaged by motor carrier companies to operate their commercial motor vehicles and authorized to provide transportation services for Ryder Last Mile, Inc. (f/k/a MXD Group, Inc.) and Ryder System, Inc. in California at any time from December 12, 2014 through July 26, 2020. 

A Notice was sent to you because you have a right to know about a proposed settlement of the class action lawsuit and about your options before the Court decides whether to approve the Settlement.  If the Court approves the Settlement, you will receive the monetary payments described in the Notice unless you decide to exclude yourself from this class Settlement (although you will still receive your PAGA Payment Share if you are in the PAGA Group).  Payments will not be made until after Objections or appeals, if any, are resolved.

The Notice explains the lawsuit, the Settlement, your legal rights, available benefits, who is eligible for them, and how to get them.  

The Court in charge of the case is the United States District Court for the Eastern District of California and the case is known as Joseph Kimbo, et al. v. MXD Group Inc., et al.   Case No. 2:19-CV-00166-WBS-KJN.  The person who brought the case is called the Plaintiff, and the companies sued in this Civil Action, Ryder Last Mile, Inc. (f/k/a MXD Group, Inc.) and Ryder System, Inc. are called the Defendants. 

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2. What Is This Lawsuit About?

On December 12, 2018, Plaintiff filed a proposed class action Complaint in the Sacramento County Superior Court, alleging that the delivery drivers that transported and delivered consumer goods in California were wrongly classified as independent contractors instead of employees.  Based on this allegation, the Complaint brought the following legal claims against Defendants: (1) failure to reimburse business expenses; (2) unlawfully deducted compensation to cover certain ordinary business expenses; (3) failure to pay minimum wages; (4) failure to pay regular rate for all hours worked; (5) failure to pay overtime compensation; (6) failure to provide off-duty and compliant meal periods, or compensation in lieu thereof; (7) failure to provide paid, off-duty or compliant rest periods, and/or compensation in lieu thereof; (8) failure to keep accurate payroll records; (9) failure to provide accurate itemized wage statements; (10) failure to pay all wages due upon termination of employment; (11) unfair competition; and (12) violation of Labor Code §§ 2698, et seq.  Plaintiff sought damages, restitution, civil penalties, and statutory penalties, pre-and post-judgment interest, costs, and attorneys’ fees. 

Defendants expressly deny each of the allegations of the Complaint and PAGA Letter and expressly deny any wrongdoing or liability to Plaintiff, the putative class he purports to represent, or any allegedly aggrieved employee. Defendants contend that their conduct has been lawful at all times relevant and further contend that Plaintiff’s claims do not have merit, do not meet the requirements for class certification, and deny that Plaintiff, the putative class he purports to represent, or any allegedly aggrieved employee are entitled to any relief. 

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3. Why Is This A Class Action?

In a class action lawsuit, one or more persons, called Class Representatives, sue on behalf of other people who may have similar claims.  All of these people together are the “Class” or “Class Members”.  One Court resolves the issues for all Class Members.   

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4. Why Is There A Settlement?

The Court did not decide in favor of Plaintiff or Defendants.

This Settlement is a compromise reached after good faith, arm’s length negotiations between Plaintiff and Defendants (the “Parties”), through their attorneys, and is not an admission of liability on the part of Defendants.  Both sides agree that in light of the risks and expenses associated with continued litigation, this Settlement is fair, adequate and reasonable.  Plaintiff also believes this Settlement is in the best interests of all Class Members. 

The Court granted preliminary approval of the Settlement on August 6, 2020.  At that time, the Court also preliminarily approved the Plaintiff to serve as the Class Representative, and the law firm of Schneider Wallace Cottrell Konecky LLP to serve as Class Counsel.

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5. How Do I Know If I Am Part Of The Settlement?

The people who may be eligible for payments under the Settlement are called “Class Members.” The Court has certified, for settlement purposes only, the following class (the “Class”) that includes all Motor Carrier Class Members and Non-Carrier Class Members.  The Class excludes Motor Carrier Class Members and Non-Carrier Class Members that only performed delivery services at the warehouse located, at or out of, 21508 Baker Parkway, City of Industry, California 91789  at any time from December 12, 2014 through July 26, 2020 (“Class Period”).  “Motor Carrier Class Members” means the owners of all motor carriers who directly contracted with Defendants in their individual capacity or through a business entity and provided transportation services to Defendants in California at any time from December 12, 2014 through July 26, 2020.  The Motor Carrier Class Members include (1) all motor carrier owners responsible for the day-to-day operations of their businesses that engaged one or more workers to operate their commercial motor vehicles to deliver goods; and (2) all motor carrier owners that also performed delivery services as the driver of their commercial motor vehicles.  

“Non-Carrier Class Members” means all individuals who did not contract with Ryder Last Mile, Inc. (f/k/a MXD Group, Inc.) and are non-owner drivers and helpers authorized to provide transportation services for Defendants in California at any time from December 12, 2014 through July 26, 2020.  The Non-Carrier Class Members include drivers and helpers engaged by motor carrier companies to operate their commercial motor vehicles and perform delivery services for Defendants in connection with contracts Defendants had with the owners of the motor carrier companies.  

The PAGA Group includes all Motor Carrier Class Members (“PAGA Motor Carrier Group Members”) and Non-Carrier Class Members (“PAGA Non-Carrier Group Members”) who provided transportation services to Defendants in California at any time from August 16, 2017 through July 26, 2020.  The PAGA Group excludes PAGA Motor Carrier Group Members and PAGA Non-Carrier Group Members that only performed delivery services at the warehouse located at 21508 Baker Parkway, City of Industry, California 91789 between August 16, 2017 through July 26, 2020. 

You received a Notice because Defendants’ records indicate you meet one of the class definitions.  If you are still not sure whether you meet one of these class definitions, please call 1-844-367-8805.

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6. What Does The Settlement Provide?

Subject to the Court’s final approval, the terms of the Settlement are as follows: 

Gross Settlement Amount 

Defendants will pay a total Gross Settlement Amount of Five Million Dollars ($5,000,000) to resolve this case.  This total Settlement amount will provide for and be inclusive of the following:  (1) Individual Settlement Payments to be paid directly to Settlement Class Members (i.e, Class Members who do not request to Opt Out and exclude themselves from the Class and the Settlement); (2) an allocated One Hundred and Twenty-Five Thousand Dollars ($125,000) which equates to 2.5% of the Gross Settlement Amount that will be set-aside in a Reserve Fund to pay to Settlement Class Members who may not be identified until after the Initial Distribution of Individual Settlement Payments; (3) an allocated amount of One Hundred Thousand Dollars ($100,000) that shall be placed in the Claims Compensation Fund to be used to compensate Settlement Class Members who have had to personally pay costs, charges, fees, or expenses (collectively “costs”) and/or have an enforceable judgment against them on claims made against them arising out of providing transportation and delivery services for Defendants in California during the Class Period; (4) the costs and fees of administration of this Settlement to be paid to the Settlement Administrator, currently estimated to be approximately $40,000; (5) the PAGA Payment, consisting of a $112,500 payment to the California Labor and Workforce Development Agency (“LWDA”) and $37,500 payment to the PAGA Group for civil penalties under the Private Attorneys General Act; (6) any Service Award to the Class Representative of up to $15,000, subject to approval by the Court; (7) attorneys’ fees of twenty-five percent (25%) the total Settlement amount, plus reimbursement of costs (not to exceed $20,000), subject to approval by the Court; and (8) the employee portions of all required withholdings/taxes.  In no event will Defendants be required to pay more than the Gross Settlement Amount for the claims under the terms of the Settlement and in no event shall any portion revert to Defendants.  


Net Settlement Amount 

The amount of the total Settlement that will be set aside to make the Individual Settlement Payments to the Class Members is called the “Net Settlement Amount.”  The Net Settlement Amount will be distributed on a pro rata basis to each Class Member, who does not Opt Out of the Settlement, based on the number of Qualifying Motor Carrier Workweeks or Qualifying Non-Carrier Workweeks during which the Settlement Class Members was authorized to provide transportation services to Defendants, between December 12, 2014 through July 26, 2020, as well as other objective factors related to the strengths, risks, and potential damages associated with the claims of each Class Member. The distribution formula is described in FAQ 7FAQ 8.  

You do NOT have to file a claim form to receive your proportionate payment under the Settlement.  However, as discussed in FAQ 7, for a Class Member to share in the Claims Compensation Fund, he or she MUST provide Proof of Costs to the Settlement Administrator.  The Claims Compensation Fund exists to compensate Settlement Class Members who have had to personally pay costs, charges, fees, or expenses (collectively “costs”) and/or have an enforceable judgment against them on claims made against them arising out of providing transportation and delivery services for Defendants in California between December 12, 2014 through July 26, 2020. If you did not have to personally pay such costs, charges, fees, or expenses, there is no reason to provide a Proof of Costs. Whether or not you provide a Proof of Costs, you still will receive your proportionate Individual Settlement Payment under the Settlement (unless you submit a valid and timely Opt Out).

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7. How Will The Settlement Money Be Split Up?

a. Automatic, Individual Settlement Payments based on your proportionate share of workweeks

The Net Settlement Amount shall be divided among all Settlement Class Members proportionally. Individual Settlement Payments to each Settlement Class Member shall be determined based on the number of his or her Qualifying Motor Carrier Class Workweeks or Qualifying Non-Carrier Class Workweeks during the Class Period.  The Net Settlement Amount shall be divided by the total number of Qualifying Motor Carrier Class Workweeks times 4 and Qualifying Non-Carrier Class Workweeks times 1 for all Settlement Class Members during the Class Period. This division is based on Class Counsel’s assessment of the difference in unreimbursed job-related expenses incurred by Motor Carrier Class Members, compared to Non-Carrier Class Members, plus the relative strengths and risks for the claims of the Motor Carrier Class Members in comparison to the claims of the Non-Carrier Class Members. The result of this division shall yield a Workweek Payment Rate for Class Members.  

(i) The gross amount of each Motor Carrier Class Member’s Individual Settlement Payment shall be calculated by multiplying the number of Qualifying Motor Carrier Workweeks applicable to that Settlement Class Member times 4 times the Workweek Payment Rate for Class Members. Governmentally-required employee tax withholdings and employer payroll taxes shall be deducted from that portion of each Individual Settlement Payment allocated as wages.

(ii) The gross amount of each Non-Carrier Class Member’s Individual Settlement Payment shall be calculated by multiplying the number of Qualifying Non-Carrier Workweeks applicable to that Settlement Class Member times 1 times the Workweek Payment Rate for Class Members. Governmentally-required employee tax withholdings and employer payroll taxes shall be deducted from that portion of each Individual Settlement Payment allocated as wages.

***You do NOT have to do anything to receive a payment.  If the Settlement is approved by the Court, Settlement Class Members will be mailed checks for their Individual Settlement Payments and PAGA Payment Shares (if applicable), which shall remain negotiable for 150-days from the date of mailing.  The value of any checks that remain uncashed after this 150-day deadline will be placed in the Reserve Fund.  If your check is lost or misplaced before the expiration of the 150-day period after the Initial Distribution, you should contact the Settlement Administrator immediately to request a replacement check and cash the check before the Check Cashing Deadline. 

b. Reserve Fund 

The Parties agreed to allocate One Hundred and Twenty-Five Thousand Dollars ($125,000) which equates to 2.5% of the Gross Settlement Amount that will be set-aside in order to make payments to individuals who were not originally identified as Class Members, but who are Class Members and who are identified as Class Members before the Reserve Fund is paid to the cy pres recipient as set forth below.  The Settlement Administrator will maintain the Reserve Fund for sixty (60) days following expiration of the Check Cashing Deadline (i.e., 150-days after Individual Settlement Payments and PAGA Payment Shares, if applicable are mailed).  Class Members receiving payment from the Reserve Fund must cash his or her check within sixty days of the expiration of the Check Cashing Deadline.  The Settlement Administrator will distribute any remaining money in the Reserve Fund not allocated after sixty (60) days following expiration of the Check Cashing Deadline to St. Christopher’s Fund as the cy pres recipient.

c. PAGA Payment Share 

Thirty-Seven Thousand Five Hundred Dollars ($37,500) shall be divided among the PAGA Group Members proportionally. PAGA Payment Shares to the PAGA Group Members shall be determined based on the number of PAGA Workweeks for Motor Carrier Group Members and PAGA Workweeks for Non-Carrier Group Members during the PAGA Period.  The $37,500 PAGA Payment shall be divided by the total number of PAGA Workweeks for Motor Carrier Group Members times 4 and PAGA Workweeks for Non-Carrier Group Members times 1 for the PAGA Group Members during the PAGA Period.  The result of this division shall yield a Workweek Payment Rate for the PAGA Group.  

(i) The gross amount of each PAGA Motor Carrier Group Member’s PAGA Payment Share shall be calculated by multiplying the number of PAGA Workweeks for Motor Carrier Group Members applicable to that individual times 4 times the Workweek Payment Rate for the PAGA Group.  

(ii) The gross amount of each PAGA Non-Carrier Group Member’s PAGA Payment Share shall be calculated by multiplying the number of PAGA Workweeks for Non-Carrier Group Members applicable to that individual times 1 times the Workweek Payment Rate for the PAGA Group.

d. The Claims Compensation Fund

In addition to your Individual Settlement Payment based on the number of your Qualifying Motor Carrier Workweeks, as described above, and PAGA Payment Share if applicable, Class Members may also request a share of the Claims Compensation Fund.  One Hundred Thousand Dollars ($100,000) shall be placed into a Claims Compensation Fund to be used to compensate Settlement Class Members who have had to personally pay costs, charges, fees, or expenses (collectively “costs”) and/or have an enforceable judgment against them on claims made against them arising out of providing transportation and delivery services for Defendants in California at any time from December 12, 2014 through July 26, 2020. Funds from the Claims Compensation Fund will be distributed as follows:

To qualify to share in this Claims Compensation Fund, you must provide Proof of Costs to the Settlement Administrator evidencing that (a) you had one or more claim(s) made against you arising out of providing transportation and delivery services to Defendants in California during the Class Period; (b) you paid the costs on one or more claim(s) and/or have an enforceable judgment against you to pay such costs; and (c) the amount paid.  This proof must be submitted in writing to the Settlement Administrator before December 28, 2020.  Please mail your submission to:

Joseph Kimbo, et al. v. MXD Group Inc., et al.
c/o Settlement Administrator
PO Box 42594
Philadelphia, PA 19101-2594

If the total amount of Proof of Costs submitted to the Settlement Administrator for payment from the Claims Compensation Fund is equal to or less than One Hundred Thousand Dollars ($100,000), then each Settlement Class Member who submitted Proof of Costs to the Claims Compensation Fund will receive the actual amount of the costs on claim(s) evidenced in the Proof of Costs submitted to the Settlement Administrator.  In addition, if the total amount of Proof of Costs for costs on claim(s) submitted to the Claims Compensation Fund is less than One Hundred Thousand Dollars ($100,000), then the amount remaining in the Claims Compensation Fund shall be added to the Net Settlement and distributed as set forth above.  If the total amount of Proof of Costs for costs on claims submitted to the Claims Compensation Fund is greater than One Hundred Thousand Dollars ($100,000), then each Settlement Class Member who submitted Proof of Costs to the Claims Compensation Fund will receive a pro-rata amount of the Claims Compensation Fund.  The pro-rata amount shall be calculated by dividing the Settlement Class Member’s total amounts of costs on claims evidenced by the Proof of Costs submitted by all Settlement Class Members who submit Proof of Costs, which will yield a percentage value.  The Settlement Class Member shall receive that percentage value of the total Claims Compensation Fund. 

***You MUST submit Proof of Costs in writing to the Settlement Administrator no later than December 28, 2020 to be eligible to receive a share of the Claims Compensation Fund.***

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8. How Much of The Settlement Will I Receive?

As explained in FAQ 7, Settlement Class Members will receive a proportionate share of the Settlement based on the number of Adjusted Qualifying Motor Carrier Workweeks or Qualifying Non-Carrier Workweeks during which the Settlement Class Members were authorized to provide transportation services to Defendants in California from December 12, 2014 through July 26, 2020. 

Please note that because tax withholdings and payments must be made with respect to a portion of your gross amount, your net payments will be less than your gross shares.  

You will need to speak with an accountant or other tax professional about any tax implications of your Settlement check.

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9. What If The Information About My Workweeks Printed On The Notice Is Incorrect?

The workweek information Defendants provided for you is presumed to be accurate.  If you disagree with the number of eligible workweeks printed on the mailed Notice, you may dispute it.  If you dispute the number of workweeks shown in Defendants’ records, you must inform the Settlement Administrator in writing of the basis for contesting any of the assigned workweeks and timely submit any Proof of Work that you may have no later than December 28, 2020.  “Proof of Work” means document(s) (such as settlement statements, payment history reports, invoices, 1099s, tax returns, or other records showing your total workweeks with Defendants) that a Class Member may submit to the Settlement Administrator to show that he or she is entitled to payment based upon a different number of Qualifying Motor Carrier Class Workweeks or Qualifying Non-Carrier Class Workweeks and/or different number of PAGA Workweeks for Motor Carrier Group members or PAGA Workweeks for Non-Carrier Group Members than the numbers calculated by the Settlement Administrator based on Defendants’ data.  If you wish to contest or dispute the number of eligible workweeks printed on the mailed Notice, you must submit Proof of Work contesting the data.  To be accepted, the Proof of Work must: (1) be sufficient to allow identification of your full name, address, and the last four digits of your Social Security Number (for identification purposes only); (2) state, in writing, the reasons why you believe an additional amount is owed; (3) be signed by you or your legal representative; and (4) be postmarked on or before the Response Deadline and returned to the Settlement Administrator.  Please mail your Proof of Work to:

Joseph Kimbo, et al. v. MXD Group Inc., et al.
c/o Settlement Administrator
PO Box 42594
Philadelphia, PA 19101-2594

Defendants’ records and determination will be presumed correct.  Nonetheless, the Settlement Administrator will review any Proof of Work submitted, investigate the dispute, consult with Defendants’ Counsel and Class Counsel as necessary and make a final determination of whether any additional amount is owed. 


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10. How Are Settlement Payments Reported For Tax Purposes?

For Settlement Class Members, the Individual Settlement Payments shall be allocated for tax purposes as follows: (a) Twenty Percent (20%) of the amount of each Individual Settlement Payment shall be allocated to their respective alleged unpaid wage claims and shall be paid after deduction of all applicable employment taxes, including any federal, state, and/or local in issue tax withholding requirements and the employee share of FICA taxes; (b) Forty Percent (40%) of the amount of each Individual Settlement Payment shall be allocated to expense reimbursement and shall not be subject to withholding; and (c) Forty Percent (40%) of the amount of each Individual Settlement Payment shall be allocated to alleged penalties and interest and shall not be subject to withholding.  PAGA Payment Shares will be allocated entirely as penalties and will be included on an IRS Form 1099 to the PAGA Group.  

The employee portion of all applicable income and payroll taxes will be the responsibility of the Settlement Class Members.  Neither Class Counsel nor Defendant’s Counsel intend anything contained in the Notice to constitute advice regarding taxes or taxability.  The tax issues for each Settlement Class Member may be unique to him or her, and each Settlement Class Member may wish to consult a tax advisor concerning the tax consequences of the payments received under the Settlement.

Class Members will need to speak with an accountant or other tax professional about any tax implications of Class Member Settlement checks.

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11. What Am I Giving Up To Stay In The Class And Get Compensation?

You do need not submit anything to receive compensation under the Settlement.  Unless you submit a signed and timely Opt Out, you will be bound by the Settlement and will release all Released Class Claims and Released PAGA Claims.  This means that, if you do not submit a valid Opt Out from the Class, you can’t sue, continue to sue, or be part of any other lawsuit or adjudicatory proceeding making any of the same allegations made in this Action against Defendants and any other Released Party (defined below) for the Released Class Claims that accrued between December 12, 2014 and July 26, 2020 (defined below) and Released PAGA Claims that accrued between August 16, 2017 and July 26, 2020 (defined below).  It also means that all of the Court’s orders in this Action will apply to you and legally bind you. 

If you are in the PAGA Group, you will still receive your PAGA Payment Share and will release the Released PAGA Claims regardless of a valid Opt Out from the Class.  A judgment in a PAGA case is binding not only on the named plaintiff but also on the government agencies and any “aggrieved employee” that is not a party to the proceeding.  Accordingly, subject to Court approval of the Settlement, Plaintiff binds the PAGA Group and the state of California to the Settlement and binds all potentially “aggrieved employees”, even those not a party to the proceeding, as well as the government, with respect to civil penalties alleged in the action.  Here, subject to Court approval of the Settlement, Plaintiff, on behalf of the state of California and the PAGA Group, releases all Released PAGA Claims, which means that the PAGA Group is prevented from filing future PAGA claims based on the same alleged violations for the same time period. 

Released Class Claims with Respect to the Settlement Class Members.  Provided there is final approval of this Settlement, then as of the date that Defendants transmit the Gross Settlement Amount to the Settlement Administrator, each Settlement Class Member, individually and on behalf of their respective successors, assigns, agents, attorneys, executors, heirs and personal representatives and/or their affiliated business entities (if any), shall fully and finally release and discharge the Released Parties, and each of them from the Released Class Claims.  The Released Class Claims with respect to the Settlement Class Members are all wage and hour claims, rights, demands, liabilities, causes of action, and theories of liability, whether known or unknown, that were or could have been alleged against any of the Released Parties arising out of, in connection with, or based on the facts alleged in the Complaint and/or the PAGA Letter.  This includes, but may not be limited to, misclassification, failure to pay wages including, but not limited to, overtime wages and minimum wages, failure to provide meal and rest periods, unpaid compensation or premium pay arising out of missed, late, on-duty and/or short meal and/or rest periods, failure to pay wages semi-monthly at designated times, failure to reimburse for business expenses, failure to pay wages upon termination and failure to provide accurate itemized wage statements, conversion, penalties, damages, interest, costs or attorneys’ fees, and violations of any other state or federal law, whether for economic damages, non-economic damages, liquidated or punitive damages, restitution, tort, contract, equitable relief, injunctive or declaratory relief, to the extent necessary to effect a full and complete release of the Released Class Claims, including but not limited to, all wage and hour claims under any common laws, the Fair Labor Standards Act (“FLSA”), Cal. Code of Regulations, Title 8, Sections 11000, et seq., Wage Order 9 or any other applicable Wage Order, California Labor Code Sections 96-98.2, et seq., 200-204, 208, 210, 216, 218.5, 218.6, 221-224, 225.5, 226, 226.3, 226.7, 226.8, 229, 400-410, 510, 511, 512, 515, 551, 552, 558, 1174, 1174.5, 1175, 1194-1197.1, 1198, 1199, 2800, 2802, 2804, 3294 and 3336 and any related provisions, the California Code of Civ. Proc. Section 1021.5, and/or the California Business & Professions Code Sections 17200, et seq., provided they were or could have been alleged against any of the Released Parties arising out of, in connection with, or based on the facts alleged in the Complaint and/or the PAGA Letter.  This release shall extend to all such claims that accrued between December 12, 2014 and July 26, 2020.  Notwithstanding the foregoing, Released Class Claims do not include any individual claim under Section 216(b) of the FLSA, 29 U.S.C. § 216(b), as to a Settlement Class Member who does not opt-in to the Settlement by cashing, depositing, or endorsing his or her Individual Settlement Payment check, to the extent that opting-in is required to release such FLSA claims.

Released PAGA Claims with Respect to the PAGA Group.  Provided there is final approval of this Settlement, then as of the date that Defendants transmit the Gross Settlement Amount to the Settlement Administrator, Plaintiff on behalf of himself, the State of California, and each PAGA Group Member shall fully and finally release and discharge the Released Parties, and each of them from the Released PAGA Claims, which shall extend to claims for civil penalties applicable to Plaintiff and each PAGA Group Member individually and on behalf of their respective successors, assigns, agents, attorneys, executors, heirs and personal representatives and/or their affiliated business entities (if any).  The Released PAGA Claims means all claims, rights, demands, liabilities, causes of action, and theories of liability of every nature and description under the California Labor Code Private Attorneys General Act of 2004, Labor Code Sections 2698, et seq., whether known or unknown, that were or could have been alleged against any of the Released Parties arising out of, in connection with, or based on the facts alleged in the Complaint, and/or PAGA Letter, including but not limited to, all claims for civil penalties for violation of the California Labor Code for misclassification, failure to pay wages including, but not limited to, overtime wages and minimum wages, failure to provide meal and rest periods, unpaid compensation or premium pay arising out of missed, late, on-duty and/or short meal and/or rest periods, failure to pay wages semi-monthly at designated times, failure to reimburse for business expenses, failure to pay wages upon termination and failure to provide accurate itemized wage statements, conversion, penalties, costs or attorneys’ fees, to the extent necessary to effect a full and complete release of the Released PAGA Claims, including all claims for penalties based on the Cal. Code of Regulations, Title 8, Sections 11000, et seq., Wage Order 9 or any other applicable Wage Order, California Labor Code Sections 96-98.2, et seq., 200-204, 208, 210, 216, 218.5, 218.6, 221-224, 225.5, 226, 226.3, 226.7, 226.8, 229, 400-410, 510, 511, 512, 515, 551, 552, 558, 1174, 1174.5, 1175, 1194-1197.1, 1198, 1199, 2800, 2802, 2804, 3294 and 3336 and any related provisions.  This release shall extend to all such claims accrued between August 16, 2017 and July 26, 2020.  This release shall be binding on the PAGA Group regardless of whether they submit a valid Opt Out from the Class. 

Released Parties means Defendants Ryder Last Mile, Inc. (f/k/a MXD Group, Inc.) and Ryder System, Inc. and each of their respective present and former parents, affiliates, divisions and subsidiaries, acquired companies, and each of their respective present and former directors, officers, shareholders, agents, representatives, employees, partners, attorneys, insurers, predecessors, successors, assigns, affiliated companies and entities and any individual or entity that could be jointly liable with any of the foregoing.

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12. How Do I Exclude Myself From This Settlement?

If you want to be excluded from the Class and Settlement, you must send a written Opt Out by U.S. mail (or express mail carrier) to the Settlement Administrator clearly stating you want to be excluded from the Settlement Class in Joseph Kimbo, et al. v. MXD Group Inc., et al.  Case No. 2:19-CV-00166-WBS-KJN.  Your Opt Out must be postmarked on or before December 28, 2020, to:

Joseph Kimbo, et al. v. MXD Group Inc., et al.
c/o Settlement Administrator
PO Box 42594
Philadelphia, PA 19101-2594

You cannot exclude yourself on the phone or by e-mail.  For an Opt Out to be valid, it must (1) contain the name, address, and the last four digits of the Social Security Number of the person requesting exclusion (for identification purposes only); (2) state your request to exclude yourself from the Settlement; (3) be signed by you or your lawful representative; and (4) be postmarked on or before December 28, 2020 and submitted to the Settlement Administrator at the address specified above.  The postmark date will be the exclusive means to determine whether an Opt Out has been timely submitted.

Any Class Member, who submits a completed, signed and timely written Opt Out shall not be a member of the Settlement Class, shall be barred from participating in this Settlement, shall be barred from objecting to this Settlement, and shall receive no benefit from this Settlement, except that Class Members who are in the PAGA Group will still receive his or her PAGA Payment Share and will release the Released PAGA Claims even if they Opt Out.  However, if you request to Opt Out be aware that there will be a time limit to bring your claims that may expire.  Any untimely or materially incomplete Opt Out may be considered null and void.

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13. If I Don’t Exclude Myself, Can I Sue Later?

No.  Unless you exclude yourself, you give up the right to sue Defendants for the claims that this Settlement resolves as described in FAQ 11.  You can still sue for other claims, just not for those claims that this Settlement resolves.

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14. If I Exclude Myself, Can I Get The Benefits Of This Settlement?

No.  If you exclude yourself from the Settlement Class, you won’t get payments or benefits from this Settlement, except that if you are in the PAGA Group, you will still receive a PAGA Payment Share and will release the Released PAGA Claims.

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15. Do I Have A Lawyer In This Case?

The Court has decided that the law firm of Schneider Wallace Cottrell Konecky LLP is qualified to represent you and all Settlement Class Members.  The law firm is called “Class Counsel.”  If you want to be represented by your own lawyer, you may hire one at your own expense.

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16. Should I Get My Own Lawyer?

If you remain in the Class, you will be represented by Class Counsel.  You do not need to hire your own lawyer because Class Counsel is working on your behalf.  But, if you want your own lawyer, you may hire one at your own expense.

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17. How Will The Lawyers Be Paid?

Class Counsel will ask the Court for attorneys’ fees of twenty-five percent (25%) of the total Gross Settlement Amount. Class Counsel will also seek reimbursement from the Gross Settlement Amount of actual expenses they incurred in pursuing the lawsuit, such as filing fees, mediation fees, and travel expenses.  Class Counsel will file an application to the Court no later than November 20, 2020 setting forth their actual hours worked and 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 November 20, 2020 by visiting the Documents page of this website or by contacting Class Counsel at (415) 421-7100.

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18. Will There Be A Service Award To The Named Plaintiff?

The Settlement also provides that Plaintiff may seek a Service Award of up to $15,000, subject to Court approval.  The Service Award is intended to compensate the Plaintiff who greatly helped the case by starting the lawsuit, investing time to assist with Counsel’s investigation and presentation of the case, and appearing in person at the mediation to help negotiate the Settlement. You can obtain a copy of this application after November 20, 2020 by visiting the Documents page of this website or by contacting Class Counsel at (415) 421-7100.

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19. How Do I Tell The Court That I Like Or Don’t Like The Settlement?

If you are a Settlement Class Member, you can tell the Court that you object to the Settlement or any aspect of it that you think is not fair, reasonable or adequate in any way, and think the Court should not approve it.  You can also tell the Court that you like the Settlement, and that it should be approved.  The Court will consider your views.

You can’t ask the Court to order a different settlement; the Court can only approve or reject this Settlement. If the Court denies approval, no settlement payments will be sent out and the lawsuit will continue.

To object, you will need to send a written Objection to the Settlement Administrator saying that you object to the settlement in Joseph Kimbo, et al. v. MXD Group Inc., et at.,, Case No. 2:19-CV-00166-WBS-KJN.  All Objections and supporting papers must (1) state the Class Member’s full name, address, and the last four digits of his or her Social Security Number (for identification purposes only); (2) state the grounds for the Objection; (3) be signed by you or your  lawful representative; and (4) be postmarked on or before December 28, 2020 and returned to the Settlement Administrator at:

Joseph Kimbo, et al. v. MXD Group Inc., et al.
c/o Settlement Administrator
PO Box 42594
Philadelphia, PA 19101-2594

If you intend to appear at the Final Fairness and Approval Hearing through counsel, please state the identity of any attorneys representing you who will appear at the Final Fairness and Approval Hearing.

If you do not submit a written Objection to the proposed Settlement or the application of Class Counsel for attorneys’ fees, expenses, and Service Awards in accordance with the deadline and procedure set forth above, you will waive your right to object to the Settlement, be heard at the Final Fairness and Approval Hearing and to appeal from any order or judgment of the Court concerning the matter.

If the Court approves the Settlement despite your Objection, you will be bound by all of the terms of the Settlement in the same way as Settlement Class Members who do not object, including without limitation, the release and discharge of the Released Class Claims, and you will still be mailed a check for your Individual Settlement Payment.  If you do not submit an Objection in the manner provided in the Notice, you will be deemed to have waived any Objection to the Settlement, and will be foreclosed from making an Objection whether in writing, orally, by appeal or otherwise.

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20. What Is The Difference Between Objecting And Excluding Myself?

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.

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21. When And Where Will The Court Decide Whether To Approve The Settlement?

The Court will hold a Final Fairness and Approval Hearing on February 8, 2021 at 1:30 p.m., in Courtroom 5, 14th Floor, United States District Court for the Eastern District of California, Robert T. Matsui United States Courthouse, 501 I Street, Sacramento, CA 95814. The Final Fairness and Approval Hearing may be continued without further notice to Class Members.  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.

If you do not object in the manner provided in FAQ 19, you shall be deemed to have approved the Settlement and to have waived any Objections, and shall be forever foreclosed from objecting to the fairness or adequacy of the proposed Settlement, including the plan of distribution, the payment of attorneys’ fees and costs, the Service Award to the Class Representative, the PAGA Payment, or any other aspect of the Settlement.

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22. Do I Have To Come To The Final Fairness and Approval Hearing?

No.  You are not required to attend the Final Fairness and Approval Hearing to receive an Individual Settlement Payment and PAGA Payment (if applicable).  Class Counsel will answer questions that the Judge may have.  But you are welcome to come at your own expense.  If you file an Objection, you do not have to come to Court to talk about it.  As long as you postmark your written Objection on time, the Court will consider it.  You may pay your own lawyer to attend the hearing, but it is not necessary.

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23. May I Speak At The Final Fairness and Approval Hearing?

If you do not exclude yourself, you may ask the Court’s permission to speak at the hearing about the proposed Settlement or the application of Plaintiff’s counsel for attorneys’ fees, expenses and Service Award.  To do so, you must send a letter saying that it is your intention to appear at the Final Fairness and Approval Hearing in Joseph Kimbo, et al. v. MXD Group Inc., et al., Case No. 2:19-CV-00166-WBS-KJN.  The letter must state the position you intend to present at the hearing, state the identities of all attorneys who will represent you (if any), and include your full name, address, telephone number, and signature.  You must send your notice to the address identified in FAQ 19, such that it is postmarked no later than December 28, 2020.

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24. What Happens If I Do Nothing At All?

If you do nothing, you will receive the Settlement payments if the Court approves the Settlement.

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25. Are There More Details About The Settlement?

The Notice summarizes the proposed Settlement. For the precise terms and conditions of the Settlement, please see the Settlement Agreement or contact Class Counsel at (415) 421-7100.  You may also access the Court docket in this case, for a fee, through the Court’s Public Access to Court Electronic Records (PACER) system at https://ecf.cand.uscourts.gov, or by visiting the office of the Clerk of the Court for the United States District Court for the Eastern District of California, Robert T. Matsui United States Courthouse, 501 I Street, Sacramento, CA 95814 between 9:00 a.m. and 4:00 p.m., Monday through Friday, excluding Court holidays.

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26. How Do I Get More Information?

You can receive more information about this litigation and Settlement by calling 1-844-367-8805.

You must inform the Settlement Administrator of any change of address to ensure receipt of your Individual Settlement Payment and PAGA Payment Share if applicable.

PLEASE DO NOT TELEPHONE THE COURT OR THE COURT CLERK’S OFFICE TO INQUIRE ABOUT THIS SETTLEMENT OR THE CLAIMS PROCESS.

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This website is authorized by the Court, supervised by counsel and controlled by the Settlement Administrator approved by the Court. This is the only authorized website for this case.

For more information please call 1-844-367-8805

Documents

Please read for a full explanation of the settlement and your options and all applicable timelines.

Contact

Contact us with any inquiries, comments, and/or requests.

Important Dates

  • Exclusion Deadline

    Monday, December 28, 2020
    You must complete and mail your request for exclusion so that it is postmarked no later than Monday, December 28, 2020.
  • Objection Deadline

    Monday, December 28, 2020
    You must mail your objection(s) and/or notice of intent to appear at the Final Fairness and Approval Hearing so that it/they are postmarked no later than Monday, December 28, 2020. 
  • Final Fairness and Approval Hearing Date

    Monday, February 8, 2021
    The Final Fairness and Approval Hearing is scheduled for Monday, February 8, 2021. Please check this website for updates.

Important Documents

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