Frequently Asked Questions

1. Am I a Settlement Class Member?

You may be a Settlement Class Member if you were hired as a fish processor and: (1) after December 2019 you spent time in mandatory COVID-19 quarantine, and/or (2) after May 2019, you were paid less frequently than every two weeks (or biweekly). One or both of these may make you eligible to receive benefits under the settlement. The information on this FAQ page and website explain that the Court has preliminarily approved the proposed class action settlement. If you are a Settlement Class Member, you have legal rights and options that you may exercise before October 7, 2024. A judge of the United States District Court for the Western District of Washington is overseeing this class action settlement. The lawsuit is known as Paunovic & Paunovic v. OBI Seafoods LLC & Ocean Beauty Seafoods LLC, Case No. 2:21-cv-00884-MJP.

2. What if I already got a similar notice?

As part of this same lawsuit, the Court previously authorized notice to be given to people hired by Defendants as fish processors who were paid less than biweekly after May 2018 because they may have federal law claims. That notice concerned the right to opt into the federal wage law claims. This is a separate notice informing you that the parties have reached a settlement in this case.

If you did not previously receive notice or decided not to join the FLSA collective, you must now make a decision about whether to (a) stay in the Settlement Class (by doing nothing); (b) opt out if you do not wish to be part of the settlement (by following the opt-out procedures described in Section 11 of the FAQs page); or (c) stay in the Settlement Class but object to the terms of the settlement (by following the objection procedures described in Section 11 of the FAQs page).

If you previously decided to join the FLSA collective, you can still choose to opt out or object to this settlement, but if the settlement is ultimately approved, you will release all of your claims in exchange for settlement of your federal claim.

3. What is this lawsuit about?

Plaintiffs claim Defendants violated Alaska state wage and hour laws by (a) paying fish processors less than the minimum wage during periods of quarantine and (b) paying fish processors less frequently than every two weeks. Defendants deny the claims.

4. Why is there a settlement?

The Court did not decide in any party’s favor. Instead, both sides agreed to a settlement. This allows the parties to avoid the cost and risk of a trial, and the people affected will be entitled to compensation. The Settlement Class Representatives and their attorneys think the settlement is best for all Settlement Class Members under the circumstances. Defendants have not admitted fault or that it violated any laws, but they and their attorneys agree that a settlement is in the best interest of all parties.

5. What claims are resolved by the settlement?

The settlement will resolve all claims and allegations that Plaintiffs made against Defendants on behalf of Settlement Class Members, including the following claims:

• Failure to pay fish processing workers at least the Alaska minimum wage for time spent in mandatory quarantine after December 2019 in violation of Alaska Statute 23.10.065;
• Failure to pay fish processing workers at least the Alaska minimum wage at intervals no greater than every two weeks after May 2019 in violation of Alaska Statute 23.10.065; and
• Failure to pay fish processing workers at least the federal minimum wage at intervals no greater than every two weeks after May 2018 in violation of the Fair Labor Standards Act, 29 U.S.C. § 206.

More information about the claims in this lawsuit can be found in Plaintiffs’ Class and Collective Action Complaint, which is available at here.

6. What are the basic terms of the settlement?

Subject to Court approval, the essential terms of the settlement are as follows:

Settlement Fund: The settlement requires Defendants to pay $2,100,000 to establish a Settlement Fund. Under the settlement, a portion of this fund will be distributed to Participating Settlement Class Members as compensation for releasing the claims resolved by the settlement as described above.

Settlement Administrator: The settlement requires Simpluris to act as and effectuate the duties of the Settlement Administrator in accordance with the Settlement Agreement. Plaintiffs will ask the Court to approve the payment of fees, costs, and other charges imposed by the Settlement Administrator, which will be paid from the Settlement Fund.

Settlement Class Representative Service Awards: Class Counsel will ask the Court to approve Service Award payments of up to $10,000 to each of the Plaintiffs to compensate them for their time and effort in pursuing this case on behalf of the Settlement Class. The Settlement Class Representative Service Awards will be paid from the Settlement Fund.

Attorneys’ Fees and Costs: Class Counsel have been working on this case for more than three years but have not received any fees or reimbursements for the costs of the lawsuit. Plaintiffs will ask the Court to approve a payment of $630,000 to Class Counsel to compensate them for their reasonable attorneys’ fees. Plaintiffs will also ask the Court to reimburse Class Counsel for out-of-pocket litigation costs in the amount of $100,000.

Distribution of the Settlement Fund: The Settlement Administrator will make payments directly to Participating Settlement Class Members. If you have recently moved, plan to move within the next 90 days, or move before you have received all payments owed to you, please contact the Settlement Administrator to provide an updated address. Contact information is provided in Section 18 below.

Tax Treatment of Settlement Payments: Settlement payments made to each Participating Settlement Class Member will be treated as 25% wages and 75% non-wages. For the wage portion of each settlement payment, the Settlement Administrator will withhold the appropriate payroll taxes and other tax withholding and will disburse those funds directly to the IRS or appropriate state agency. The Settlement Administrator will report the wage portion as taxable income on an IRS Form W-2. For the non-wage portion, the Settlement Administrator will not withhold any taxes, but this portion will still be considered taxable income. The Settlement Administrator will report the non-wage portion as taxable income on an IRS Form 1099.

Please consult with your accountant or tax advisor regarding potential tax consequences of the settlement payment.

Release of Claims: Upon final approval by the Court, Plaintiffs and Participating Settlement Class Members will dismiss the lawsuit and release Defendants from all claims that were or could have been brought against them based on the allegations asserted in the complaint filed in this lawsuit. This releases Defendants from liability related to any claims for unpaid wages, exemplary damages, interest, fees, costs, attorneys’ fees, and all other claims made in this lawsuit or that could have been made in this lawsuit for events occurring after May 2018 (as to the FLSA claim), May 2019 (as to the Alaska state law pay delay claim), and December 2019 (as to the Alaska state law quarantine claim).

For a full copy of the Settlement Agreement, please visit the Important Documents page.

Dismissal of the Action: Upon final approval of the settlement, the Court will dismiss the lawsuit with prejudice but will retain jurisdiction to enforce the terms of the settlement.

7. I am a Settlement Class Member. How can I get a payment?

Each Settlement Class Member who does not submit a valid and timely request for exclusion will automatically become a Participating Settlement Class Member and will receive a settlement payment in an amount based on damages calculations made by Plaintiffs’ damages expert. You may choose to receive your payment electronically or by check.

If you would like to receive your payment electronically, please complete the payment election form here. This form is optional. If no payment method is selected, the payment will be issued as a check to the address on file.

8. If I stay in the Settlement Class, when will I get my payment?

The Court will hold a hearing on December 3, 2024, at 10:00 a.m., to decide whether to approve the settlement. If the Court approves the settlement, the parties will then have to wait to see if there is an appeal. This will take at least thirty (30) days and, if there is an appeal, can take up to a year or more to resolve. In the event of an appeal, information regarding the appeal’s progress will be posted here. If there is no appeal, Class Counsel expect the payment to go out within ninety (90) days of the Court’s approval of the settlement.

9. What if I am a Settlement Class Member and I do nothing at all?

You don’t have to do anything now if you want to receive a settlement payment. By doing nothing, you will become a Participating Settlement Class Member and will automatically receive a settlement payment. Keep in mind that if you do nothing now, you will not be able to sue Defendants—as part of any other lawsuit—about the same legal claims that are the subject of this lawsuit. You will also be legally bound by the Release of Claims (see Section 6) and the orders and judgments the Court makes in this lawsuit.

10. What if I am a Settlement Class Member and I request exclusion?

Unless you previously joined this lawsuit as a member of the FLSA Collective by submitting your request to opt in, if you exclude yourself from the settlement, you will retain your right to separately sue the Defendants for the same or similar claims at issue in the claim brought on behalf of any class from which you are excluded without the claims being barred by this case. If you exclude yourself (or “opt out”) from either Class, you won’t get any money or benefits from this settlement. However, you may then be able to sue Defendants for alleged wage and hour violations. If you exclude yourself, you will not be legally bound by the Release of Claims or any orders or judgments the Court makes in this lawsuit.

If you previously joined this lawsuit as a member of the FLSA Collective by submitting your request to opt in, then you may request exclusion from the settlement of the class action claims, but you will still release your claims in exchange for settlement of your federal claim if the settlement is approved.

11. What if I am a Settlement Class Member and I don’t like the settlement?

If you don’t like the settlement, you have two options: you can choose to exclude yourself or you can choose to object.

How to Exclude Yourself:

If you exclude yourself, you will not be paid under the Settlement Agreement unless you previously joined the FLSA collective in which case you will receive compensation for your federal claim if the settlement is approved. If you exclude yourself, you may not object to the settlement.

To ask to be excluded, you must mail a written letter to the Settlement Administrator at the address provided below. The letter must include your name, current address, and telephone number, as well as a statement clearly asking to be excluded (for example: “I want to be excluded from the settlement in Paunovic & Paunovic v. OBI Seafoods LLC & Ocean Beauty Seafoods LLC”). The letter must be signed by you and postmarked no later than October 7, 2024.

How to Object to the Settlement:

If you wish to object, you must submit a written letter to the Settlement Administrator by mail. The letter must include (1) your name, address, and telephone number; (2) the name of the case, Paunovic & Paunovic v. OBI Seafoods LLC & Ocean Beauty Seafoods LLC, Case No. 2:21-cv-00884-MJP; (3) the reasons why you think the Court should not approve the settlement; (4) any supporting documentation you wish the Court to consider; (5) a request to appear at the Final Approval Hearing if you or your attorney wish to appear; and (6) your signature. The letter must be postmarked no later than October 7, 2024.

If the settlement is approved, you will still receive a payment under the settlement.

The Settlement Administrator is Simpluris. You can mail exclusion requests or objections to Simpluris at the following address:

Paunovic et al. v. OBI Seafoods LLC
c/o Settlement Administrator
P.O. Box 26170
Santa Ana, CA 92799

12. If I am a Settlement Class Member, will Defendants retaliate against me for staying in the Settlement Class, excluding myself, or objecting to the settlement?

No. The law does not allow retaliation or discrimination by an employer or former employer against anyone who chooses to stay in, be excluded from, or object to a class action settlement.

Defendants’ Statement of Non-Retaliation: OBI Seafoods LLC and Ocean Beauty Seafoods LLC affirm they will not retaliate against you for participating in this settlement, for excluding yourself, or for objecting, whatever your choice may be.

The choice of whether to remain in the Settlement Class, exclude yourself, or object is entirely up to you.

13. If I am a Settlement Class Member, do I have a lawyer in this case?

The Court has decided that the Seattle, Washington law firm of Terrell Marshall Law Group PLLC and the New York City, New York law firm of Kenworthey Law PLLC are qualified to represent you and all Settlement Class Members. Together the lawyers are called “Class Counsel.” They are experienced in handling similar cases against other employers. More information about the law firms, their practices, and their lawyers’ experience is available at www.terrellmarshall.com and www.kenwortheylaw.com.

14. If I am a Settlement Class Member, may I retain my own lawyer?

You do not need to hire your own lawyer because Class Counsel is working on your behalf. But if you choose to remain in the Class and you want your own lawyer, you have the right to hire a lawyer at your own expense. For example, you can ask him or her to appear in Court for you if you want someone other than Class Counsel to speak for you.

15. How will the lawyers be paid?

Plaintiffs will ask the Court to approve a payment of $630,000 from the Settlement Fund to compensate Class Counsel for their reasonable attorneys’ fees. Plaintiffs will also ask the Court to reimburse Class Counsel for out-of-pocket litigation costs in the amount of $100,000.

16. When and where will the Court decide whether to approve the settlement?

The Court will hold a Fairness Hearing at 10:00 a.m. on December 3, 2024, in the courtroom of:

The Honorable Marsha J. Pechman
United States Courthouse
Courtroom: Suite 14206
700 Stewart Street
Seattle, WA 98101-9906

At this hearing, the Court will consider whether the settlement is fair, reasonable, and adequate. If there are objections, the Court will consider them. You and/or your personal attorney may attend the hearing if you wish, but it is not required. If you or your attorney wish to be heard by the Court at the hearing, you must request in writing to do so. See “How to Object to the Settlement” in Section 11 for more information.

17. If I am a Settlement Class Member, do I have to come to the Fairness Hearing?

You do not need to attend the Fairness Hearing, but you may do so if you want. If you or your attorney wish to be heard by the Court at the hearing, you must request in writing to do so. See Section 11, “How to Object to the Settlement.” If you want to merely observe the hearing, you do not need to make a request to do so.

18. Are more details available?

You may get more information by emailing, calling, or writing to the Settlement Administrator at:

Paunovic et. al. v. OBI Seafoods LLC
c/o Settlement Administrator
P.O. Box 26170
Santa Ana, CA 92799
Email: info@OceanBeautyWageClassAction.com
Telephone: (844) 804-5315

You may also find key documents, including the Court’s Orders granting preliminary approval of the settlement and Plaintiffs’ motions for certification of the classes and collective; Plaintiffs’ Complaint; and Defendants’ Answer to the Complaint on the Important Documents page of this website.

Plaintiffs’ Motion for Final Approval and Attorneys’ Fees and Costs will be posted on the Important Documents page no later than September 23, 2024, fourteen (14) days before the deadline to submit a request for exclusion or objection.