Court approves $800K settlement in wage class action against Interstate Hotel & Resorts

By Takesha Thomas | Mar 7, 2019

SAN FRANCISCO – A federal district court has approved a class action settlement in a wage suit filed by employees of Interstate Hotels & Resorts.

On Feb. 21, U.S. District Judge William Alsup of the Northern District of California granted final approval to Dina Rae Richardson and 350 other class members in a settlement worth $800,000. 

The funds, Alsup ruled, will be distributed as such: "41.5 percent will be allocated to room attendant class members and 58.5 percent will be allocated to nonroom attendant class members." 

Richardson will receive an additional $2,000 as an award for the "numerous hours and efforts invested in this action," Alsup ruled. 

Richardson brought suit against Interstate Hotels alleging that the company failed to allow employees meal breaks and rest periods. The class action further alleged that employees were not paid minimum and overtime wages and Interstate failed to provide "accurate itemized wage statements, and did not pay all wages due upon separation." 

The class action suit stated that Interstate "maintained policies and practices that pressured employees to work off the clock and through rest periods and meal periods without compensation." 

Additionally, Interstate was alleged to have undercompensated employees by "rounding employee time punches to the quarter hour."

Alsup also granted in part the request for attorney's fees and reimbursements to the class action counsel. 

Attorneys for the employees asked that they receive $127,666.44 in unreimbursed expenses. Alsup, however, reduced that figure to $115,861.22. He also awarded $200,000 in attorney’s fees. 

"Half of this amount shall be paid immediately. The other half shall be paid when class counsel certify that all funds have been properly distributed and the file can be completely closed," the ruling states.

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