Construction Companies Settle California Class Action Lawsuit

March 10, 2009

LOS ANGELES, CA - A settlement in an employment-related class action for construction workers was granted final approval by U.S. District Court Judge Dale Fischer of the Central District of California, in Gutierrez et al. v. Schmid et al yesterday. Workers will begin receiving settlement checks by mail in mid-April.

The suit was filed on behalf of certain current and former California employees. The settlement resolves all of the named plaintiffs’ and affected employees’ wage claims against defendants in exchange for an $8.5 million payment.

While the Companies deny any liability, the suit alleged violations of California’s wage and hour laws. The lawsuit did not involve any claims or allegations of unlawful discrimination.

The class, as finally approved by the Court, includes current and former California installers who worked for Western Insulation, L.P., and Schmid Insulation Contractors, Inc., at any time from October 13, 2002, to September 30, 2008, and who worked for Masco Contractor Services of California, Inc., at any time from January 1, 2008, until September 30, 2008.

The measures contained in the settlement include:

  • Affected current and former employees will be entitled to monetary compensation from a fund created by the settlement.
  • The amount received by the affected employees will depend on the individual employee’s length of covered employment and his or her specific job and wage rate.
  • Affected employees will begin receiving their checks by mail, without having to fill out any claim forms.
  • Affected employees are encouraged to call 888-546-7439, with any questions about the settlement.

For all media inquiries, please contact Laura Rodriguez.

Copyright 2009 MALDEF — Mexican American Legal Defense and Educational Fund