IN THE UNITED STATES DISTRICT COURT EASTERN DISTRICT OF CALIFORNIA. Case No. 2:17-cv KJN NOTICE OF PROPOSED CLASS ACTION SETTLEMENT

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1 IN THE UNITED STATES DISTRICT COURT EASTERN DISTRICT OF CALIFORNIA HERNAN GUZMAN-PADILLA, CIPRIANO BENITEZ, CARLOS FABIAN TORRES PEREZ and GUILLERMO BENITEZ SANTOYO individually and on behalf of all others similarly situated. Plaintiffs, vs. Case No. 2:17-cv KJN GERARD VAN DE POL; HENRY VAN DE POL; AND GERARD VAN DE POL AND HENRY VAN DE POL d/b/a G & H DAIRY, Defendants. NOTICE OF PROPOSED CLASS ACTION SETTLEMENT TO: All Hispanic persons born outside of the United States employed by Defendants (Gerard Van de Pol, Henry Van de Pol, and G&H Dairy) at any time between January 27, 2013 through August 16, 2017 (start and end dates inclusive); and All Hispanic persons born outside of the United States employed by Defendants (Gerard Van de Pol, Henry Van de Pol, and G&H Dairy) and their families who were provided housing by the Defendants and lived on property owned or managed by the Defendants between January 27, 2013 through August 16, 2017 (start and end dates inclusive). RE: Settlement of claims for alleged discrimination against Hispanic persons born outside of the United States, violations of employment law (including failure to pay overtime and failure to provide meal periods and rest breaks), and violations of housing law THIS NOTICE MAY AFFECT YOUR LEGAL RIGHTS. PLEASE READ IT CAREFULLY. YOU MAY BE ENTITLED TO MONEY FROM THIS SETTLEMENT. 1. INTRODUCTION The Court authorized this Notice. It is not a solicitation from a lawyer. This NOTICE OF SETTLEMENT is to inform you that the parties to this lawsuit have agreed to settle a class action lawsuit claiming violations of California and federal employment law, and state and federal anti-discrimination and housing laws, during the period between January 27, 2013 through August 16, 2017 (the Class Period ), and that the Court has preliminarily approved the parties settlement. The lawsuit alleges, among other things, that Defendants Gerard Van de Pol, Henry Van de Pol, and G&H Dairy failed to compensate employees for all hours worked, failed to pay overtime, failed to provide all required meal periods and rest breaks, and acted discriminatorily by failing to maintain and repair employee housing. Plaintiffs attorneys believe that the settlement described below is fair, adequate, reasonable, and in the best interests of the Plaintiffs and the Settlement Classes. On August 16, 2017, the United States District Court, Eastern District of California, granted preliminary approval of this class action settlement and certified the Settlement Classes. THIS NOTICE IS TO INFORM YOU ABOUT: A PROPOSED SETTLEMENT OF THIS CLASS ACTION LAWSUIT; YOUR RIGHT TO RECEIVE A PORTION OF THE SETTLEMENT FUNDS; YOUR RIGHT TO CORRECT THE FOLLOWING, WHICH WILL BE USED TO COMPUTE YOUR SHARE OF THE SETTLEMENT FUNDS: (1) YOUR DATES OF EMPLOYMENT AT G&H DAIRY, (2) YOUR JOB CATEGORY AT G&H DAIRY, AND (3) WHETHER OR NOT YOU LIVED IN G&H DAIRY EMPLOYEE HOUSING; YOUR RIGHT TO FILE ANY OBJECTIONS YOU MAY HAVE TO THE SETTLEMENT, INCLUDING: (1) THE TERMS OF THE SETTLEMENT, (2) THE PLAN OF DISTRIBUTION TO THE EMPLOYEE CLASS OR TO THE HOUSING CLASS, (3) THE PROPOSED SERVICE PAYMENTS TO NAMED PLAINTIFFS, AND (4) THE PROPOSED AWARD OF ATTORNEY S FEES; AND 1

2 YOUR RIGHT TO OBJECT OR EXCLUDE YOURSELF FROM THE SETTLEMENT. IF YOU WANT TO OPT OUT OR OBJECT, YOU MUST DO SO BY OCTOBER 7, DESCRIPTION OF THE LAWSUIT Plaintiffs Hernan Guzman-Padilla, Cipriano Benitez, Carlos Fabian Torres Perez, and Guillermo Benitez Santoyo ( Named Plaintiffs ) filed this class action lawsuit claiming that GERARD VAN DE POL and HENRY VAN DE POL, doing business as G&H DAIRY ( Defendants ), violated the following state and federal laws during the Class Period. The lawsuit was filed on January 27, 2017 and later amended. A copy of the complaint can be obtained by contacting Class Counsel listed on Section 11 or at the following website Discrimination against Hispanic persons born outside of the United States under federal law (42 U.S.C. 1981); Failure to pay California minimum wage for all hours worked (Cal. Labor Code , 1197 and Wage Order 14); Failure to pay overtime premiums as required by California law (Cal. Labor Code 510, 1198; Wage Order 14); Failure to pay all wages owed and waiting time penalties under California law (Cal Labor Code 201, 202, 203); Failure to provide meal and rest periods as required by California law (Cal. Labor Code 226.7, 512, Wage Order 14); Failure to reimburse employees for work-related expenses as required by California law (Cal. Labor Code 2802; Wage Order 14); Failure to provide adequate itemized wage statements as required by California law (Cal. Labor Code 226); Penalties for violations under the Private Attorneys General Act (Cal. Labor Code 2698 et. seq.); Failure to repair and maintain housing, in violation of the California Fair Employment and Housing Act (Cal. Gov t Code 12955); and in violation of the Unruh Act (Cal. Civ. Code 51); Violations of the Agricultural Worker Protection Act (29 U.S.C et. seq.); Unfair business practices in violation of the California Business and Professions Code et. seq. On behalf of themselves and similarly situated former and current employees and residents of G&H Dairy employee housing, Plaintiffs sought unpaid wages, damages, civil and statutory penalties, pre- and post-judgment interest, declaratory relief, injunctive relief, and attorneys fees and costs. There have been no findings of any wrongdoing by any of the Defendants. Defendants wish to settle in order to avoid the costs, time, and disruption caused by litigation. Defendants do not admit to any wrongdoing or liability. Under this settlement, the following settlement classes ( Settlement Classes ) will be certified under Federal Rules of Civil Procedure, Rule 23(a) and Rule 23(b)(3): EMPLOYEE CLASS: All Hispanic persons born outside of the United States employed by Defendants at any time between January 27, 2013 through August 16, 2017 (start and end dates inclusive) (the Class Period ), except for those who file a timely request to opt out of the Employee Class. HOUSING CLASS: All Hispanic persons born outside of the United States employed by Defendants and their families who were provided housing by the Defendants and lived on property owned or managed by the Defendants between January 27, 2013 through August 16, 2017 (start and end dates inclusive) ( the Class Period ) except for those who file a timely request to opt out of the Housing Class. This Notice is being sent to you because the Defendants records indicate that you may be a member of the Employee Class and/or the Housing Class. Therefore, you may be entitled to receive compensation. If you are part of the Settlement Classes, this settlement will affect your rights. 3. TERMS OF THE PROPOSED SETTLEMENT Defendants have agreed to pay a total of Six Hundred Thousand Dollars ($600,000) and have agreed to comprehensive injunctive relief (summarized in the next section) to resolve all claims alleged against the Defendants in this Lawsuit by any member of the Settlement Classes during the Class Period. The total settlement amount of $600,000 will be divided as follows: A. THE CLASS SETTLEMENT AMOUNT: Three Hundred and Ninety Thousand Dollars ($390,000) will be used to compensate members of the Settlement Classes after the following deductions have been made: i. Settlement Administration Costs: The parties estimate that the settlement administration costs will be approximately $11, The settlement administrator will be: 2

3 CPT Group, Inc. Irvine, California Telephone: Fax: ii. iii. iv. Service Awards: The four Named Plaintiffs request service awards of Five Hundred Dollars ($500) each to compensate them for the risks, potential liability, and time and effort involved in bringing and prosecuting this action. The total requested for service payments for the four Named Plaintiffs amounts to Two Thousand Dollars ($2,000). The Named Plaintiffs will submit an application to the Court for these service awards, and the Court will decide whether to award them at the final approval hearing. Payment to Labor Workforce Development Agency (LWDA): Under the settlement, Three Thousand Five Hundred Dollars ($3,500) is designated as penalties under the Private Attorney s General Act (PAGA). As required by statute, 75% of this amount, Two Thousand Six Hundred Twenty Five Dollars ($2,625), must be paid to the government through the LWDA. The other $875 will be paid to the Employee Class consistent with the plan of allocation set forth below in section (v). Employer s Payroll Taxes: 50% of the payments made to the Class Members (except the Named Plaintiffs service awards), are treated as damages for lost wages and will be subject to payroll taxes. The employer s share of payroll taxes for these wages will be deducted from the Class Settlement Amount prior to calculating distributions. v. Settlement Shares: All of the amounts listed in sections (i) to (iv) will be deducted from the $390,000 Class Settlement Amount before calculating the amount to be distributed to each eligible Class Member. The remaining funds will be distributed as follows: a. Five (5) percent will be allocated to the Housing Class. The distribution will be done as described in Section 3(C) below. b. The other ninety-five (95) percent (plus the $875 designated as penalties under PAGA) will be allocated to the Employee Class. The specific monetary award that will be paid to each Employee Class Member will depend on that Class Member s job category, number of pay periods worked at G&H Dairy, and dates of employment at G&H Dairy. The distribution will be done as described in Section (3)(B) below. B. PLAN OF DISTRIBUTION TO THE EMPLOYEE CLASS: After the deductions described in Section (3)(A) above, the portion allocated to each member of the Employee Class will be determined as follows: Every Milker will receive one portion for each pay period worked from January 27, 2013 to August 31, 2016, and half a portion for each pay period worked from September 1, 2016 to August 16, Every Herdsmen will receive one portion for each pay period worked from January 27, 2013 to August 31, 2016, and half a portion for each pay period worked from September 1, 2016 to August 16, Every Clerical Worker will receive a 0.3 portion for every pay period worked from January 27, 2013 to August 31, 2016, and a 0.15 portion for each pay period worked from September 1, 2016 to August 16, Every Truck Driver will receive a 0.4 portion for every pay period worked from January 27, 2013 to August 31, 2016, and a 0.2 portion for each pay period worked from September 1, 2016 to August 16, Every Field Worker will receive a 0.4 portion for every pay period worked from January 27, 2013 through August 31, 2016, and a 0.2 portion for each pay period worked from September 1, 2016 to August 16, C. PLAN OF DISTRIBUTION TO THE HOUSING CLASS: The funds allocated to the Housing Class will be divided equally among the members of the Housing Class who are also members of the Employee Class. D. ATTORNEYS FEES AND COSTS: Class Counsel will be paid up to One Hundred Seventy Thousand Dollars ($170,000) to compensate them for their work on the case and to reimburse them for the costs they have incurred. The amount of fees and costs was negotiated separately from the Class Settlement Amount and will not be deducted from the $390,000 Class Settlement Amount. Class Counsel will submit an application to the Court for Attorneys Fees and Costs and ask the Court for up to $170,000, the actual amount of which will be determined by the Court at the final approval hearing. E. SETTLEMENT OF INDIVIDUAL CLAIMS: Forty Thousand Dollars ($40,000) will be distributed among Named Plaintiffs Cipriano Benitez, Carlos Fabian Torres Perez, and Guillermo Benitez Santoyo to resolve their individual nonclass claims for wrongful termination and retaliation. This amount was negotiated separately from the Class Settlement Amount and will not be deducted from the $390,000 Class Settlement Amount. 3

4 F. INJUNCTIVE RELIEF: Defendants have also agreed to change certain practices as detailed in the Consent Decree that was submitted to the Court for approval. A summary of some of these changes is included here. If you would like to see a copy of the Consent Decree, which includes all changes, please contact Class Counsel, whose addresses and phone numbers are listed in Section 11 below or visit i. Employment Provisions a. Defendants will pay class members for all hours worked, including preparatory time before a scheduled shift and hours attending trainings. b. Defendants will pay overtime as required by California law. i. For Milkers, Herdsmen, Fieldworkers/Irrigators/Orchard Workers and Truck Drivers, Defendants will pay overtime at a rate of 1.5 times the class member s regular hourly rate of pay for hours worked over 10 per workday or 60 per workweek. Starting on January 1, 2019, Defendants will pay overtime at a rate of 1.5 times the class member s regular hourly rate of pay for hours worked over 9.5 per workday or 55 per workweek, unless changed by California law. ii. For Clerical Workers, Defendants will pay overtime for hours worked over 8 per workday or 40 per workweek. Defendants will pay overtime at a rate of 1.5 times the class member s regular hourly rate of pay for hours worked in excess of 8 hours up to and including 12 hours in any workday, and double the class member s regular rate of pay for all hours worked in excess of 12 in any workday. iii. Defendants will pay overtime for hours worked on the seventh day of the workweek. This overtime will be at a rate of 1.5 times the class member s regular hourly rate of pay for the first 8 hours worked on the seventh day of the workweek, and double the employee s regular rate of pay for all hours worked in excess of 8 on the seventh day of the workweek. iv. Workers who receive a salary will be paid overtime in addition to their regular pay. c. Defendants will keep track of all employee hours worked, including by requiring every class member to clock in prior to beginning to work and to clock out after completing work; by requiring class members to clock in at the beginning of a meeting or training period and to clock out at the end of the meeting or training period if the employee is not already clocked in; and by requiring class members to clock out at the start of meal periods and to clock back in at the conclusion of meal periods. d. Defendants shall provide class members with a first meal period of 30 minutes for all shifts longer than five hours, within five hours after the start of the employee s shift, i.e. at or before the beginning of the employee s sixth hour of work. Defendants shall provide class members with a second meal period of 30 minutes for all shifts longer than ten hours, which must begin within ten hours after the start of the employee s shift, i.e. at or before the start of the employee s eleventh hour of work. e. Defendants will provide class members with a 10-minute rest period for all shifts longer than 3.5 hours; a second 10-minute rest period for all shifts longer than 6 hours; and a third 10-minute rest break for all shifts that are hours in length. Defendants shall adopt a process by which class members can report any missed rest periods, either through the electronic timekeeping system or through a written form made available at all worksites and to be turned in to the office manager. f. Once per year, Defendants shall provide a $25 gift card for the feed store in Escalon, California, to each Milker employed on the day in which the gift cards are distributed. g. Defendants will not make deductions from any employee s wages, apart from those required by law, without a written agreement in English and in Spanish (or such other language as is spoken by the class member). h. Defendants will provide annual trainings to class members regarding their rights under the California Labor Code. ii. Employee Housing a. Defendants will ensure that all housing provided to employees has the following (among other things): a bathroom; a cooking facility; a functional kitchen sink; hot and cold running water; safe and properly working plumbing, gas, ventilation, and wiring; adequate heating (which does not include space heaters); structurally sound flooring, walls, ceilings/roofs, and building foundations; windows that close properly; no infestations of vermin; and no deteriorated plaster, dampness, or visible mold growth. 4

5 b. Defendants will conduct an inspection each time an employee moves in or out of a residence. A checklist of the most recent repairs will be posted in the housing. Residents will also receive a written policy in English and Spanish that describes how to request housing repairs or maintenance from Defendants, and a written agreement in English and Spanish stating that if they quit employment or are lawfully terminated by Defendants, they have 30 days to vacate the residence. c. Emergency repairs (including for leaks, broken plumbing, heating, electrical issues, or any conditions endangering a resident s health and safety) will be done within 24 hours or as soon as reasonably possible. All other requests for repairs or maintenance will be completed within 10 days. If it is not possible to complete the request in that time frame, Defendants will respond in writing within 10 days and will provide a timeline for finishing the repairs or maintenance. d. Defendants will not evict residents or change the terms of their tenancy in response to requests for repairs or maintenance. iii. Anti-Discrimination Policies a. Defendants will adopt policies that prohibit all managers, supervisors, and owners from predicating their treatment of employees or residents of employee housing on race, ancestry, alienage, and/or national origin. b. Defendants will create a policy and internal reporting system through which employees can report harassment to someone other than their direct supervisor and receive written documentation of their complaint. The reporting and subsequent documentation will be done in the class member s native language. PLEASE NOTE: This Notice provides only a summary of some of the terms and conditions of the settlement. The complete terms of the proposed settlement are stated in the actual Stipulation of Settlement and [Proposed] Consent Decree that has been tentatively approved by and filed with the Court. You may obtain a copy of the Stipulation of Settlement and [Proposed] Consent Decree from Class Counsel, whose contact information is listed in Section 11 below or visit 4. CORRECTIONS TO INFORMATION OR REQUEST FOR WIRE TRANSFER The Information and Correction Form enclosed with this Notice sets forth: (a) Your job category; the dates you worked at G&H Dairy during the Class Period, according to G&H Dairy s records; and an estimate of your share of the monetary settlement as a member of the Employee Class, based on your job category and dates of employment. The estimated value of your share is based on the assumption that all eligible Employee Class Members will receive a share of the settlement. However, if some Employee Class Members choose to opt out of the settlement, or if some Employee Class Members job categories and dates of employment need to be corrected, your final share of the settlement amount will be different from the estimated amount reported on your Information and Correction Form. (b) Whether you are considered a member of the Housing Class, and if so, the estimated value of your share of the monetary settlement as a member of the Housing Class. The estimated value of your share is based on the assumption that all eligible Housing Class Members will receive a share of the settlement. However, if some Class Members choose to opt out of the settlement, or if some Class Members inclusion in or exclusion from the Housing Class needs to be corrected, your final share of the settlement amount will be different from the estimated amount reported on your Information and Correction Form. Please review the information on the Information and Correction Form carefully. (1) If you agree with the information on the Information and Correction Form and want to receive your funds through a check: You do not need to do anything. You do not have to return the Information and Correction Form in order to receive a share of the Settlement funds. A check will be mailed to the address that is included on your Information and Correction Form if the court grants final approval of the settlement. (2) If you agree with the information on the Information and Correction Form, but want to receive your funds through a wire transfer: Please write your bank information, including the 18-digit CLABE (Clave Bancaria Estandarizada) number if applicable, on the form and mail or fax it to the Settlement Administrator by October 7, (3) If you disagree with the information on the Information and Correction Form: If you believe that any of the information on your Information and Correction Form, including your job category, the dates you worked at G&H Dairy during the Class Period, or whether you are part of the Housing Class, is incorrect, you may challenge that information. To file a challenge, you must write the correct information (i.e., your job category, the dates you worked at G&H Dairy, and/or whether you lived in G&H Dairy housing) on the Information and Correction Form. If you believe that you should be included in the Housing Class, please include the dates for which you lived in G&H Dairy housing and the address or a description of the housing. Please mail or fax the form to the Settlement Administrator by October 7, If you submit an Information and 5

6 Correction Form, you should simultaneously submit any documentation that you have supporting your challenge, such as wage statements or documents or photos showing that you lived in G&H Dairy employee housing. If you challenge the information on your Information and Correction Form, the Settlement Administrator will investigate and review any documentation you submit, as well as any records available from the Defendants, to determine whether the information is correct. Your submission of an Information and Correction Form will be your authorization for the Defendants to release any employment or housing records they have for you to the Settlement Administrator for the limited purpose of making a determination on your challenge, and for the Settlement Administrator to review those records. The Settlement Administrator s decision regarding the information you challenge will be based on the Defendants records and will prevail over what you state on the Information and Correction Form unless you provide persuasive documentation showing that the Defendants records are wrong. The decision of the Settlement Administrator will be final and will not be subject to appeal. 5. BINDING EFFECT AND CLASS RELEASE If the Court grants final approval of the proposed Settlement, it will be binding on all members of the Employee Class and Housing Class who do not opt out, and those class members will release certain claims (meaning they are barred from bringing those claims) as follows: The Released Claims of the Employee Class are all claims of Participating Settlement Class Members of the Employee Class asserted in the Second Amended Complaint on behalf of the Employee Class (including, but not limited to, claims for violations of the California Labor Code, the Private Attorneys General Act, 42 U.S.C. 1981, the California Business and Professions Code et. seq., and the federal Agricultural Worker Protection Act), and any claims that could have been brought, whether known or unknown, based on or arising out of the facts alleged in the Second Amended Complaint arising during the Class Period. The Released Claims of the Housing Class are all claims of Participating Settlement Class Members of the Housing Class asserted in the Second Amended Complaint on behalf of the Housing Class (including, but not limited to, claims for violations of the California Fair Employment and Housing Act, the California Unruh Act, and the federal Agricultural Worker Protection Act), and any claims that could have been brought, whether known or unknown, based on or arising out of the facts alleged in the Second Amended Complaint arising during the Class Period. The Employee Class and Housing Class shall release all of their respective Released Claims, whether known or unknown, suspected or unsuspected, upon any legal theory, and to that extent waive the provisions of Cal. Civil Code OPT-OUT PROCEDURE You have the right to opt out if you do not want to be part of this settlement. If you opt out, you (a) will not receive any money under the settlement; (b) will not be bound by the terms of this settlement, including its release provisions; and (c) may, subject to applicable statutes of limitations, bring a separate individual legal action for any claims you may have arising against Defendants during the Class Period. If you opt out of this lawsuit and bring a separate individual legal action, you may lose your case and receive nothing, or you may obtain more or less money than you would receive under this Settlement, and it may take several years to obtain any such money. To opt out of this lawsuit, you must send a signed letter to the settlement administrator: Guzman-Padilla, et al. v. Gerard Van de Pol, et al. Administrator c/o CPT Group, Inc. Irvine, CA In your letter, include your full name, address, phone number, and social security number or taxpayer identification number. To be timely, your opt-out request must be delivered or postmarked on or before October 7, OBJECTIONS TO THE PROPOSED SETTLEMENT You have the right to object to the settlement if (1) you believe for any reason that the Court should not grant final approval of the proposed settlement, or if you object to (2) the plan for allocation of the monetary shares of the Class Settlement Amount, (3) the service payments to the Named Plaintiffs, or (4) the proposed award of attorneys fees. If you want to object to the settlement, you must file an objection in writing with the Claims Administrator: 6

7 Guzman-Padilla, et al. v. Gerard Van de Pol, et al. Administrator c/o CPT Group, Inc. Irvine, CA In the written statement, you must state the basis of your objection, and you must state the name and number of the case (Guzman-Padilla, et al. v. Gerard Van de Pol, et al., United States District Court, Eastern District of California, Case No. 2:17-cv JAM-KJN). You must also include your full name, address, and phone number. To be timely, your written objection(s) must be delivered or postmarked on or before October 7, If you have filed a timely and proper objection, you also may appear and present argument at the final approval hearing scheduled for October 12, 2017, at 10:00 am in Courtroom 25 of the United States District Court, located at Robert T. Matsui Federal Courthouse, 501 I Street, Room 4-200, Sacramento, CA 95814, to have your objection heard by the Court. Objections not timely postmarked or delivered to the Class Administrator by October 7, 2017 will not be considered by the Court. If you file an objection that is not timely, or that does not include the information specified above, you will have no right to appear and present any argument at the final approval hearing. You may be represented by an attorney at the final approval hearing. Any attorney who will represent an individual objecting to the settlement must file a notice of appearance with the Court and serve counsel for all parties on or before October 7, All objections or other correspondence must state the name and number of the case Guzman-Padilla, et al. v. Gerard Van de Pol, et al., United States District Court, Eastern District of California, Case No. 2:17-cv JAM-KJN. 8. RESCISSION OF OPT-OUT AND WITHDRAWAL OF OBJECTION If you file a timely letter indicating that you want to opt-out of this lawsuit, and you change your mind, you may rescind your opt-out request. Likewise, if you file a timely and proper objection to the lawsuit, and you later change your mind, you may withdraw your objection. To rescind your opt-out request or withdraw your objection, you must sending or delivering a written letter to the Settlement Administrator at: Guzman-Padilla, et al. v. Gerard Van de Pol, et al. Administrator c/o CPT Group, Inc. Irvine, CA In your letter, include your full name, address, phone number, and social security number or taxpayer identification number. To be timely, your letter rescinding your opt-out request or withdrawing your objection must be delivered or postmarked on or before October 2, NOTICE OF HEARING ON FINAL APPROVAL AND OBJECTIONS The Court has preliminarily approved the settlement and will hold a Final Approval hearing (also called a Fairness Hearing) to decide whether to give final approval to the settlement. This Final Approval Hearing will be held on October 12, 2017, at 10:00 am in Courtroom 25 of the United States District Court, located at Robert T. Matsui Federal Courthouse, 501 I Street, Room 4-200, Sacramento, CA At this hearing, the Court will consider whether the proposed settlement is fair, reasonable, and adequate. If there are objections, the Court will consider them. The Court will listen to people who have asked to speak at the hearing. The Court may also decide how much to pay Class Counsel. After the hearing, the Court will decide whether to approve the settlement. 10. ATTORNEYS FEES AND COSTS You will not have to pay the attorneys who represented you as a class member in this lawsuit. As part of the settlement, the Defendants have agreed to pay class counsel for attorneys fees and costs. As stated above in Section III, the Court has preliminarily approved that up to $170,000 shall be paid to Class Counsel for attorneys fees and costs, and it will make a final decision regarding how much Class Counsel should receive at the final approval hearing. 11. FURTHER INFORMATION AND ADDRESS OF CLASS COUNSEL Please do not call or contact the court. You may find additional information about the settlement at If you have any questions about the settlement, you may contact the Settlement Administrator at You also may contact Class Counsel at the addresses or phone numbers listed below: 7

8 James M. Finberg ALTSHULER BERZON LLP 177 Post Street, Suite 300 San Francisco, CA Telephone: (415) Dawson Morton CRLA FOUNDATION 2210 K Street, Suite 201 Sacramento, CA Telephone: (916) Robert J. Wasserman MAYALL HURLEY P.C Grand Canal Boulevard Stockton, California Telephone: (209) IF THE CLASS ACTION SETTLEMENT AND RELEASE IS NOT APPROVED If the Stipulation of Settlement and [Proposed] Consent Decree is not approved by the Court, the conditional settlement will be voided, no money will be paid, and the parties will continue to litigate this case. If that happens there is no assurance: (a) that any decision at trial would be in favor of Class Members; (b) that a trial decision, if any, would be as favorable to the Class Members as this settlement; or (c) that any favorable trial decision would be upheld if an appeal is filed. 13. NO RETALIATION OR DISCRIMINATION California and federal law prohibit the Defendants from discharging you or in any other manner retaliating or discriminating against you because you have exercised your right under California or federal law to participate in, and receive a share of, this settlement. 14. ADDRESS AND PHONE NUMBER CHANGES It is your responsibility to keep the Settlement Administrator apprised of your correct address and phone number until the settlement has been approved and payments have been made. Please sign and mail any change of address (including former and new address) or change of phone number (including former and new phone number) to: Guzman-Padilla, et al. v. Gerard Van de Pol, et al. Administrator c/o CPT Group, Inc. Irvine, CA Telephone: Fax: