Classaction Lawsuit Working Off Clock

[Corlan]

I worked for a company for 6 years.  The first year I caught the store manager shaving employee time, deleting worked shifts and clocking in unpaid lunches never taken.  Two of us as asst managers confronted her and asked her not to allow herself to be put in a situation by higher ups that resulted in breaking the law and basically stealing from hourly employees.  She was very angry and didn't stop.  We gathered all the evidence and went to an inhouse careline to report the manager and DM for time shaving and theft.  They sent the DM to investigate himself and the store manager.  As a result they made all of our evidence vanish, never reimbursed any employee and started making us clock ourselves out for unpaid lunch breaks we were forced to work through.  Took it all the way to the top of the company.  We were basically asked if we didn't like working there.  Why were we there.  In a town where it seems there are more unemployed than employed.  We complied.  We were threatened at every turn and  told they didn't care it was against the law to force us to work unpaid.  That 20 people wanted our jobs.  It was the cost of doing business if we wanted to keep our jobs.

There is now a classaction lawsuit against this corporation.  Apparently, it wasn't just our 'town'.  It was a nationwide problem.  I've already spoken with the lawyers on joining, but the papers they sent me concern me.  They told me on the phone I was entitled to all backpay of lunches, including unpaid overtime, plus double damages.  For instance on the unpaid lunches alone I'm owed 5,000 so I'm entitled to 10,000.  I'm gathering the amounts owed on overtime and what I can prove.  They said that the company I worked for would have to pay all their expenses and I would owe nothing.  According to the papers this lawfirm sent me to sign it says in my name and at my expense I'm responsible for the services of all accountants, witnesses, investigators, etc. etc. within a contingency fee basis.  In the event I'm not awarded costs I'm responsible for all fees.  That the firm may advance these costs during the course of litigation.  That if we lose I'm responsible for any fees and costs incurred by the opposing party.

Is that saying I'm responsible for fees even if they are saying on the phone I will not be responsible for anything unless we win and that it will be covered by the company we are suing?  I'm definitely owed for being forced to work off the clock and have witnesses to the fact.  I'm concerned to sign these papers with this law firm as I'm not being told what I'm entitled to.  Only what they are going to hold me responsible for.  Can I negotiate with the law firm what I'm entitled to?  As I don't know exactly under the law what I can expect.  Are there punitive damages that I'm entitled to in anyway and if so what are they?  Is what they want me to sign considered a standard Contingency Agreement?  Or am I maybe signing my life away in the event this law firm doesn't perform to snuff and we lose?  At this point I don't really see how that would be possible as the evidence against my old company is pretty much insurmountable.

[Stanly]

Denise - Those forms are scary, aren't they?  That is a drawback to working with counsel you personally do not know.  However, the forms are undoubtedly standard, and everyone else in the litigation has signed on the dotted line.

Some facts = Employment law firms only take these cases if they think they can win them.  That is the nature of the contingency fee case.  The lawyers really do not get a dime if they lose, and the costs can run into the hundreds of thousands of dollars the firm has to advance while the case is being litigated.  

As a successful plaintiff, you are entitled to all of the money you should have been paid for three years retroactively.  It can be two years, but with the evidence of bad faith shown by the company, I think the courts will go to the three year maximum.  They you are entitled to "liquidated damages," which is where the doubling of the amount comes in.  This is like punitive damages - it is just at a set amount, double the actual money owed to each plaintiff. The way it would work if you won is that the fees the firm had to pay for things like depositions, experts, etc. would come off the top of the award. The remaining funds would be distributed to the plaintiff class based on how much they were owed by the company.  Because the prevailing party - you and the other plaintiffs in my hypothetical - is entitled to attorneys fees, the company would also have to pay the bill for your attorneys.  Their fees, separate from their expenses, would be an amount added to the award for the plaintiffs.  Your share of the actual expenses would depend on the number of plaintiffs in the case - the more of them, the less it would cost you.

Sometimes there is a civil penalty in addition to the damages awarded.  If there is a penalty, it is more money the defendant has to pay, but it goes to the Department of Labor, not the plaintiffs.  It does not reduce the money available to you and your former coworkers.

I think you need to speak with one of the attorneys handling the class action to have the opportunity to reassure yourself about all of your concerns.  It is important to trust the lawyers handling your case.  Schedule an appointment to speak with one or more of them by phone or conference call.  Ask all of your questions.  This matter is important to you; you should be able to relax about having someone represent you.  

You were brave to do what you did.  Many people are afraid to speak up when their job could be on the line.  I hope you feel vindicated when this is over and you have prevailed.