Frequently Asked Questions

1. What are the Actions about?

Plaintiffs are former employees of the Company. Plaintiffs accuse the Company of violating California labor laws by failing to pay overtime wages, timely wages during employment, vacation time wages, and wages due upon termination and failing to provide meal periods, rest breaks, reimbursement for necessary business expenses, accurate itemized wage statements, as well as for unfair business practices. Based on the same claims, Plaintiffs have also asserted a claim for civil penalties PAGA.

2. What does it mean that the Action has settled?

So far, the Court has made no determination whether the Company or Plaintiffs are correct on the merits. In the meantime, Plaintiffs and the Company hired an experienced, neutral mediator in an effort to resolve the Action by negotiating an to end the case by agreement (settle the case) rather than continuing the expensive and time-consuming process of litigation. The negotiations were successful. By signing a lengthy written settlement agreement (“Agreement”) and agreeing to jointly ask the Court to enter a judgment ending the Action and enforcing the Agreement, Plaintiffs and the Company have negotiated a proposed Settlement that is subject to the Court’s Final Approval Order. Both sides agree the proposed Settlement is a compromise of disputed claims. By agreeing to settle, the Company does not admit any violations or concede the merit of any claims.

Plaintiffs and Class Counsel strongly believe the Settlement is a good deal for you because they believe that: (1) the Company has agreed to pay a fair, reasonable and adequate amount considering the strength of the claims and the risks and uncertainties of continued litigation; and (2) Settlement is in the best interests of the Class Members and Aggrieved Employees. The Court preliminarily approved the proposed Settlement as fair, reasonable and adequate, authorized the Notice, and scheduled a hearing to determine Final Approval.

3. What are the important terms of the proposed Settlement?

1. The Company Will Pay $2,500,000.00 as the Gross Settlement Amount (“Gross Settlement Amount”). The Company has agreed to deposit the Gross Settlement Amount into an account controlled by the Administrator of the Settlement. The Administrator will use the Gross Settlement Amount to pay the Individual Class Payments, Individual PAGA Payments, Class Representative Service Payments, Class Counsel’s attorney’s fees and expenses, the Administrator’s expenses, and penalties to be paid to the LWDA. Assuming the Court grants Final Approval, the Company will fund the Gross Settlement Amount not more than 30 days after the Judgment entered by the Court becomes final. The Judgment will be final 65 days after the date the Court enters Judgment, or a later date if Participating Class Members object to the proposed Settlement or the Judgment is appealed.

2. Court Approved Deductions from Gross Settlement Amount. At the Final Approval Hearing, Plaintiffs and/or Class Counsel will ask the Court to approve the following deductions from the Gross Settlement Amount, the amounts of which will be decided by the Court at the Final Approval Hearing:

1. Up to $833,333.33 (One-Third of the Gross Settlement Amount) to Class Counsel for attorneys’ fees and up to $62,000.00 for their litigation expenses. To date, Class Counsel have worked and incurred expenses on the Action without payment.

2. Up to $10,000.00 as a Class Representative Service Payment per Class Representative for filing the Action and working with Class Counsel and representing the Class. A Class Representative Service Payment will be the only monies Plaintiffs will receive other than Plaintiffs’ Individual Class Payment and any Individual PAGA Payment.

3. Up to $20,000.00 to the Administrator for services administering the Settlement.

4. Up to $125,000.00 for PAGA Penalties, allocated 75% to the LWDA PAGA Payment and 25% in Individual PAGA Payments to the Aggrieved Employees based on their PAGA Pay Periods.

Participating Class Members have the right to object to any of these deductions. The Court will consider all objections.

3. Net Settlement Amount Distributed to Participating Class Members. After making the above deductions in amounts approved by the Court, the Administrator will distribute the rest of the Gross Settlement Amount (the “Net Settlement”) by making Individual Class Payments to Participating Class Members based on their Workweeks.

4. Taxes Owed on Payments to Class Members. The Settlement shall be broken down as follows: 20% (“Wage Portion”) of each Individual Class Payment to taxable wages and 80% (“Non-Wage Portion”) to penalties. The Wage Portion is subject to withholding and will be reported on IRS W-2 Forms. The Company will separately pay employer payroll taxes it owes on the Wage Portion. The Individual PAGA Payments are counted as penalties rather than wages for tax purposes. The Administrator will report the Individual PAGA Payments and the Non-Wage Portions of the Individual Class Payments on IRS 1099 Forms.

   Although Plaintiffs and the Company have agreed to these allocations, neither side is giving you any advice on whether your payments are taxable or how much you might owe in taxes. You are responsible for paying all taxes (including penalties and interest on back taxes) on any payments received from the proposed Settlement. You should consult a tax advisor if you have any questions about the tax consequences of the proposed Settlement.

5. Need to Promptly Cash Payment Checks. The front of every check issued for Individual Class Payments and Individual PAGA Payments will show the date when the check expires (the void date). If you don’t cash it by the void date, your check will be automatically cancelled, and the monies will be transmitted to the Bay Area Legal Aid, the Court-approved cy pres.

6. Requests for Exclusion from the Class Settlement (Opt-Outs). You will be treated as a Participating Class Member, participating fully in the Class Settlement, unless you notify the Administrator in writing, not later than 60 days after the Administrator mails the Class Notice (plus an additional 14 days for Class Members whose Class Notice is re-mailed), that you wish to opt-out. The easiest way to notify the Administrator is to send a written and signed Request for Exclusion by the Response Deadline. The Request for Exclusion should be a letter from a Class Member or his/her representative setting forth the Class Member’s full name, present address, email or telephone number, and a simple statement electing to be excluded from the Class Settlement. Excluded Class Members (i.e., Non-Participating Class Members) will not receive Individual Class Payments but will preserve their rights to personally pursue wage and hour claims against the Company.

7. You cannot opt-out of the PAGA portion of the Settlement. Class Members who exclude themselves from the Class Settlement (Non-Participating Class Members) remain eligible for Individual PAGA Payments.

8. The Proposed Settlement Will be Void if the Court Denies Final Approval. It is possible the Court will decline to grant Final Approval of the Settlement or decline to enter a Judgment. It is also possible the Court will enter a Judgment that is reversed on appeal. Plaintiffs and the Company have agreed that, in either case, the Settlement will be void: the Company will not pay any money and Class Members will not release any claims against the Company.

9. Administrator. The Court has appointed a neutral company, Simpluris, Inc. (the “Administrator”) to send the Notice, calculate and make payments, and process Class Members’ Requests for Exclusion, challenges to Workweeks and/or PAGA Pay Periods, and objections. The Administrator will also mail and re-mail settlement checks and tax forms, and perform other tasks necessary to administer the Settlement. The Administrator’s contact information is contained in Question 9.

10. Participating Class Members’ Release. After the Judgment is final and the Company has fully funded the Gross Settlement and separately paid all employer payroll taxes, Participating Class Members will be legally barred from asserting any of the claims released under the Settlement. This means that unless you opted out by validly excluding yourself from the Class Settlement, you cannot sue, continue to sue, or be part of any other lawsuit against the Company or related entities for wages based on the Class Period facts and PAGA penalties based on PAGA Period facts, as alleged in the Actions and resolved by this Settlement.

    The Participating Class Members will be bound by the following release:

    Participating Class Members will release and discharge the Released Parties from all claims (with the exception of the PAGA Released Claims defined below), arising during the Class Period, alleged in the Operative Complaint under any federal, state or local law or administrative order that were pled in the Operative Complaint against Defendant, including but not limited to the failure to pay overtime compensation (Labor Code sections 510, 1194, 1198), the failure to pay at the minimum wage (Labor Code sections 1194, 1197, and 1197.1), the failure to provide meal periods (Labor Code sections 226.7 and 512), the failure to pay meal period premium pay (Labor Code section 226.7), the failure to provide rest periods (Labor Code section 226.7), the failure to pay rest period premium pay (Labor Code section 226.7), the failure to timely pay wages throughout employment (Labor Code sections 201-204, and 210), the failure to timely pay final wages upon separation of employment (Labor Code sections 201- 203), the failure to provide complete and accurate itemized wage statements (Labor Code sections 226), the failure to pay for accrued and vested vacation days (Labor Code section 227.30), unlawful and unfair business practices, the failure to reimburse reasonable and necessary business expenses (Labor Code sections 2800 and 2802), and any other claims whatsoever that were alleged in the Operative Complaint, including without limitation all related claims for restitution and other equitable relief under Business and Professions Code section 17200 et seq.

11. The State of California on behalf of the Aggrieved Employees’ PAGA Release. After the Court’s judgment is final, and the Company has fully funded the Gross Settlement and separately paid all employer payroll taxes, all Aggrieved Employees will be barred from asserting PAGA claims against the Company, whether or not they exclude themselves from the Settlement. This means that all Aggrieved Employees, including those who are Participating Class Members and those who opt-out of the Class Settlement, cannot sue, continue to sue, or participate in any other PAGA claim against the Company or its related entities based on the PAGA Period facts alleged in the Actions and resolved by this Settlement.

    The Aggrieved Employees’ Releases for Participating and Non-Participating Class Members are as follows:

    Aggrieved Employees will be deemed to release and discharge the Released Parties from all PAGA claims for civil penalties, arising during the PAGA Period, that are based on the Labor Code violations pled in the PAGA Notice.

4. How will the Administrator calculate my payment?

1. Individual Class Payments. The Administrator will calculate Individual Class Payments by (a) dividing the Net Settlement Amount by the total number of Workweeks worked by all Participating Class Members, and (b) multiplying the result by the number of Workweeks worked by each individual Participating Class Member.

2. Individual PAGA Payments. The Administrator will calculate Individual PAGA Payments by (a) dividing $31,250.00 by the total number of PAGA Pay Periods worked by all Aggrieved Employees and (b) multiplying the result by the number of PAGA Pay Periods worked by each individual Aggrieved Employee.

3. Workweek/PAGA Pay Period Challenges. The number of Workweeks you worked during the Class Period and the number of PAGA Pay Periods you worked during the PAGA Period, as recorded in the Company’s records, are stated on the first page of the Notice. You have until May 8, 2026, to challenge the number of Workweeks and/or PAGA Pay Periods credited to you. You can submit your challenge by signing and sending a letter to the Administrator via mail, email or fax. Question 9 has the Administrator’s contact information.

   You need to support your challenge by sending copies of pay stubs or other records. The Administrator will accept the Company’s calculation of Workweeks and/or PAGA Pay Periods based on the Company’s records as accurate unless you send copies of records containing contrary information. You should send copies rather than originals because the documents will not be returned to you. The Administrator will resolve Workweek and/or PAGA Pay Period challenges based on your submission and on input from Class Counsel (who will advocate on behalf of Participating Class Members) and the Company’s counsel. The Administrator’s decision is final. You can’t appeal or otherwise challenge its final decision.

5. How will I get paid?

1. Participating Class Members. The Administrator will send, by U.S. mail, a single check to every Participating Class Member (i.e., every Class Member who doesn’t opt-out) including those who also qualify as Aggrieved Employees. The single check will combine the Individual Class Payment and the Individual PAGA Payment.

2. Non-Participating Class Members. The Administrator will send, by U.S. mail, a single Individual PAGA Payment check to every Aggrieved Employee who opts out of the Class Settlement (i.e., every Non-Participating Class Member).

Your check will be sent to the same address as in the Notice. If you change your address, be sure to notify the Administrator as soon as possible. Question 9 has the Administrator’s contact information.

6. How do I opt-out of the Class Settlement?

Submit a written and signed letter with your full name, present address, telephone number, and a simple statement that you do not want to participate in the Settlement. The Administrator will exclude you based on any writing communicating your request be excluded. Be sure to personally sign your request, identify the Action as Harris/Burghart v. Watermark Services IV, LLC, and include your identifying information (full name, address, telephone number, approximate dates of employment, and social security number for verification purposes). You must make the request yourself. If someone else makes the request for you, it will not be valid.

The Administrator must be sent your request to be excluded by May 8, 2026, or it will be invalid. Question 9 has the Administrator’s contact information.

7. How do I object to the Settlement?

Only Participating Class Members have the right to object to the Class action portions of the Settlement. Before deciding whether to object, you may wish to see what Plaintiffs and the Company are asking the Court to approve. At least 16 court days before the July 14, 2026 Final Approval Hearing, Class Counsel and/or Plaintiffs will file in Court (1) a Motion for Final Approval that includes, among other things, the reasons why the proposed Settlement is fair, and (2) a Motion for Fees, Litigation Expenses and Service Awards stating (i) the amount Class Counsel is requesting for attorneys’ fees and litigation expenses; and (ii) the amounts Plaintiffs are requesting as Class Representative Service Payments. Upon reasonable request, Class Counsel (whose contact information is Question 9 ) will send you copies of these documents at no cost to you. You can also view them here or the Court’s website https://eportal.alameda.courts.ca.gov/?q=node/388.

A Participating Class Member who disagrees with any aspect of the Settlement, the Motion for Final Approval and/or Motion for Fees, Litigation Expenses and Service Awards may wish to object, for example, that the proposed Settlement is unfair, or that the amounts requested by Class Counsel or Plaintiffs are too high or too low. The deadline for sending written objections to the Administrator is May 8, 2026. Be sure to tell the Administrator what you object to, why you object, and any facts that support your objection. Make sure you identify the Action as /Burghart v. Watermark Services IV, LLC and include your full name, current address, telephone number, and approximate dates of employment for the Company and sign the objection. Question 9 has the Administrator’s contact information.

Alternatively, a Participating Class Member can object (or personally retain a lawyer to object at your own cost) by attending the Final Approval Hearing. You (or your attorney) should be ready to tell the Court what you object to, why you object, and any facts that support your objection. See Question 8 (immediately below) for specifics regarding the Final Approval Hearing.

8. Can I attend the Final Approval Hearing?

You can, but don’t have to, attend the Final Approval Hearing on July 14, 2026, at 2:30 p.m. in Department 21 of the Alameda Superior Court, located at 1221 Oak Street Oakland, CA 94612. At the Hearing, the judge will decide whether to grant Final Approval of the Settlement and how much of the Gross Settlement Amount will be paid to Class Counsel, Plaintiffs, and the Administrator. The Court will invite comments from objectors, Class Counsel and Defense Counsel before making a decision. You can attend (or hire a lawyer to attend) either personally or virtually via Alameda County’s Zoom link (https://www.alameda.courts.ca.gov/general-information/remote-appearances). Check the Court’s website for the most current information.

It’s possible the Court will reschedule the Final Approval Hearing. You should check this website beforehand or contact Class Counsel to verify the date and time of the Final Approval Hearing.

9. How can I get more information?

The Agreement sets forth everything the Company and Plaintiffs have promised to do under the proposed Settlement. The easiest way to read the Agreement, the Judgment or any other Settlement documents is to visit the Important Documents page. You can also telephone or send an email to Class Counsel or the Administrator using the contact information listed below or consult the Superior Court of Alameda County website by going to https://eportal.alameda.courts.ca.gov and entering the Case Number for the Action, Case No. 23CV035212. You can also make an appointment to personally review court documents in the Clerk’s Office at the Rene C. Davidson Courthouse by calling (510) 891-6000.

The Contact information for Class Counsel and the Administrator is as follows:

Do not telephone the Superior Court to obtain information about the Settlement.

10. What if I lose my settlement check?

If you lose or misplace your settlement check before cashing it, the Administrator will replace it as long as you request a replacement before the void date on the face of the original check.

11. What if I change my address?

To receive your check, you should immediately notify the Administrator if you move or otherwise change your mailing address. Question 9 has the Administrator’s contact information.