Chime v. Peak Security – Case Status

  • Posted on: Jan 22 2018
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On January 28, 2013, Paul Chime filed a putative class and collective action Complaint against Peak Security Plus, Inc. in the U.S. District Court Eastern District of New York, which is assigned case number 1:13-cv-470 (AMD).

Who Are The Class And Collective Action Members?

The lawsuit is brought on behalf of all individuals whom Peak Security employs or has employed as security guards at any time since January 28, 2007.

What Are The Claims In The Lawsuit?

The lawsuit alleges five causes of action on behalf of the class and collective action members.

  1. Failure to pay overtime under the Fair Labor Standards Act (“FLSA”) and New York Labor Law (“NYLL”). These claims are based on the allegations that Peak Security did not pay the putative class and collective action members one and one-half their regular hourly rate for every hour they worked above 40 in a week, as the FLSA and NYLL require. Peak Security, instead, paid them the below their regular hourly rate for every hour worked above 40 in a week and paid them a maximum of 80 hours every two weeks, violating the FLSA and NYLL. These two claims seek to recover the unpaid compensation and liquidated damages for these violations.
  2. Failure to pay for all hours worked under the FLSA and NYLL. These two claims are based on the allegations that Peak Security did not pay the security guards for every hour worked: for the 15 minutes they were required to arrive before their shift started to assure a smooth transition. Peak Security, instead, paid them according just to their scheduled hours – not their actual hours worked. These claims seek to recover this unpaid compensation and liquidated damages for these violations.
  3. Recordkeeping violations under the NYLL. This claim alleges that Peak Security would give the security guards an envelope with cash to compensate them (partially) for their work and when doing so did not give them a written statement setting forth their rate of pay, whether they were paid by the hour, shift, day or week, or the hours the compensation covered. This violates the NYLL. This claim therefore seeks to recover for each class member a civil penalty of $100.00 for each workweek that this violation occurred, with a maximum of $2,500.00 per class member.

Case Status:

  • A trial was held from August 16 to 19, 2016 on liability. The jury found for the Plaintiffs on all claims. A damages trial was then scheduled for a later date.
  • The parties reached a classwide settlement to settle the claims for $200,000.
  • On June 12, 2017, the parties submitted to the Court the settlement agreement for preliminary approval.
  • On April 26, 2018 at 10:30 a.m., Judge Donnelly of the U.S. District Court for the Eastern District of New York held a hearing on whether to grant preliminary approval of the agreement. The Court granted preliminary approval.
  • On June 29, 2018, the Court granted preliminary approval of the settlement, meaning a notice will soon be mailed to the class members, advising them on the settlement terms.
  • The notice was mailed by August 2, 2018. If you are a class member, you should make sure the United States Post Office has your most current address. As explained in the notice, the court scheduled a final fairness hearing for December 6, 2018 at 11:30 a.m.
  • If you have not received the notice, please contact the Claims Administrator and provide them your address: Optime Administration 1 (844) 625-7313
  • NO money has been dispersed. The court must first grant final approval of the settlement, which occurs after the class members have had an opportunity to receive the settlement notice and decide how they want to proceed.

*This update is current as of August 14, 2018.

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