Because the settlement preliminarily approved by the Court would affect Class Members’ legal rights, the Court ordered that this Website be created. This website provides a brief description of the Lawsuit, informs you of the settlement terms preliminarily approved by the Court, and advises you of your legal rights with respect to the settlement. If finally approved by the Court, the settlement will fully resolve the Lawsuit and your legal rights may be affected by the settlement.

The terms of the settlement are set forth in detail in the Class Action and PAGA Settlement Agreement (“Settlement Agreement”). You may obtain a copy of the Settlement Agreement from the neutral third-party appointed by the Court to administer the settlement (the “Settlement Administrator”). Details about how to get additional information about the Settlement Agreement are provided at the end of this California Notice.

On May 9, 2023, Plaintiff, on behalf of himself and all others similarly situated, filed the initial complaint in this Lawsuit in the Superior Court of California for the County of Sacramento. The operative complaint alleges the following claims under California and federal law: (1) failure to reimburse for necessary business expenses and (2) violations under the PAGA.

BMO denied and continues to deny (i) all of the allegations made by Plaintiffs, (ii) that it violated any applicable laws, (iii) that it is liable or owes damages, penalties, or other compensation or remedies to anyone with respect to the alleged facts or claims asserted in the Lawsuit, and (iv) that class certification or representative treatment of the Lawsuit or any of Plaintiffs’ alleged claims is proper. Nonetheless, without admitting or conceding any liability or wrongdoing whatsoever and without admitting or conceding that class certification or representative treatment is appropriate for any purpose other than settlement purposes alone, BMO has agreed to settle the Lawsuit on the terms and conditions set forth in this Settlement Agreement, to avoid the burden, expense, and uncertainty of continuing the Lawsuit.

The Court has preliminarily approved Plaintiffs’ counsel Justin M. Swartz and Kaelyn Mahar of Outten & Golden LLP, and Camar R. Jones of Shavitz Law Group, P.A., as Class Counsel. Based on their investigation and evaluation, Class Counsel is of the opinion that the terms set forth in the Settlement Agreement are fair, reasonable, adequate, and in the best interests of Class Members.

a. Overall Summary of Settlement Payments

BMO agrees to pay a maximum potential settlement amount of Four Hundred Sixty-Three Thousand Sixty-Six Dollars and Zero Cents ($463,066.00) (the “Gross Settlement Amount”). The $463,066.00 Gross Settlement Amount is inclusive of (i) any award by the Court to Class Counsel for attorneys’ fees and costs associated with the litigation (“Attorneys’ Fees and Litigation Expenses”), (ii) any award by the Court to Plaintiffs in recognition of their efforts and work in prosecuting the Lawsuit and specifically in exchange for their general release of claims (“Enhancement Payments”), (iii) any costs of settlement administration, A.B. Data, Ltd. approved by the Court for administering the settlement (“Claims Administration Costs”), and (iv) the PAGA Penalty Payment in the amount of $9,000.00, of which $6,750.00 will be paid to the Labor & Workforce Development Agency (the “LWDA Payment”) and of which $2,250.00 will be distributed to PAGA Aggrieved Employees (“PAGA Settlement Fund”).

The remaining portion of the Gross Settlement Amount available for distribution to Settlement Class Members is the “Net Settlement Amount,” to be allocated based on the number of months each individual worked in a Covered Position during the Class Period, on a pro rata basis. Likewise, all non-exempt employees who worked in a Covered Position in California during the PAGA Period (“Aggrieved Employees”) will receive a pro rata portion of the PAGA Settlement Fund based on the number of months each individual worked during the PAGA Period. Partial months will be counted as full months.

b. Individual Settlement Payments

          Applicable Tax Withholding and Responsibility for Taxes

Each Settlement Class Member’s Settlement Payment from the Net Settlement Amount will be characterized as 100% 1099 income. The Claims Administrator shall issue any necessary IRS Form 1099 to Settlement Class Members for their respective Settlement Payments. Settlement Class Members shall be solely and legally responsible for paying all other applicable taxes on their respective Settlement Payments.

c. Attorneys’ Fees and Litigation Expenses

You do not need to pay individually any portion of Class Counsel’s attorneys’ fees and litigation expenses. Any payments for those attorneys’ fees and expenses will be deducted from the Gross Settlement Amount. Class Counsel intends to request that the Court approve an Attorneys’ Fees award in the amount of up to one-third of the Settlement Amount (or $154,355.33) (“Attorneys’ Fee”) and litigation expenses in the amount of up to $15,401.88 (“Litigation Expenses”).

The Court’s approval of Attorneys’ Fees and Litigation Expenses is not a material term of the settlement.

d. Class Representative Enhancement Payments

Class Counsel intends to request that the Court approve Enhancement Payments for the five Plaintiffs in the total amount of up to $5,000. Plaintiff’s Enhancement Payment is in addition to Plaintiff’s Individual Settlement Payment.

The Court’s approval of Plaintiff’s Enhancement Payment is not a material term of the settlement.

e. Claims Administration Costs

Class Counsel intends to request that the Court approve Claims Administration Costs of up to $25,000.00, payable to the Claims Administrator for administering the settlement, including, but not limited to, printing, distributing, or tracking Class Notices, providing any required tax forms, processing any required tax payments or reporting, and calculating and distributing Settlement Payments. Any amount of Claims Administration Costs requested by Class Counsel but unapproved by the Court shall be allocated to the Net Settlement Fund.

f. LWDA Payment

Class Counsel intends to request that the Court allocate $9,000.00 to PAGA penalties and approve an LWDA Payment of $6,750.00 (or 75% of the PAGA penalties) to the State of California Labor and Workforce Development Agency. Any amount of the LWDA Payment requested by Plaintiffs but not approved by the Court shall be allocated to the Net Settlement Fund.

g. All Payments Subject to Court Approval

All of the payments listed above will be made if and only if the Court grants final approval of the settlement and concludes it is reasonable, fair, and adequate for the Class. The Court may adjust the amounts of certain payments.

If eligible to participate in the settlement, in exchange for your Settlement Payments, you and each of your heirs, representatives, successors, assigns, and attorneys will release certain claims against BMO and its respective past and present parents, subsidiaries, affiliated companies and corporations, and each and all of their respective past and present directors, officers, managers, employees, general partners, limited partners, principals, agents, insurers, reinsurers, shareholders, attorneys, advisors, representatives, predecessors, successors, divisions, joint venturers, assigns, or related entities, and each and all of their respective executors, successors, assigns, and legal representatives (collectively, “Released Parties”).

Your release will include any and all wage and hour class claims that are or could have been alleged in the Complaint related to unreimbursed business expenses associated with their employment with BOTW as (1) Mortgage Banker, (2) Mortgage Banker HC NonNetwork, (3) Mortgage Banker Private, and/or (4) Mortgage Banker Std NonNetwork, in California. These released claims include but are not limited to: claims for Labor Code Sections 218.5, 2699, and 2802; violation of Wage Order No. 4, and claims related to any and all damages, penalties, interest, punitive damages, liquidated damages, attorneys’ fees, costs, injunctive relief, declaratory relief, or accounting based on or related to the above claims (“Settlement Class Release”).

Should the Court grant final approval of the settlement and you worked in a Covered Position in California during the PAGA Period, you will receive a check associated with the PAGA claims being resolved and you will release all claims under PAGA alleged in the operative complaint or claims that could have been alleged based on the facts therein, arising during the PAGA Period. This includes all wage and hour claims that are or could have been alleged in the Complaint related to unreimbursed business expenses incurred by the Aggrieved Employees, including claims for violation of Labor Code sections 218.5, 2699, 2802; violation of Private Attorneys General Act (PAGA) (Lab. Code § 2698, et seq.); and violation of Wage Order No. 4. Alleged Claims also means any and all claims asserted by the Class Representatives for interest and attorneys’ fees and costs incurred in this Litigation (“PAGA Release”).

If you are eligible to participate in the settlement, and if you want to participate in the settlement as a Settlement Class Member, you do not have to do anything and do not have to appear at the final approval hearing before the Court. You will receive your Settlement Payment automatically if the Court grants final approval of the settlement.

However, if you want to object to the settlement, you must take the steps below. Failure to do so will be deemed a waiver of any objections, and you will not be permitted to appear at the final approval hearing before the Court:

If you fail to make an objection in the manner specified above, you shall be deemed to have waived any objections and shall be foreclosed from making any objection, whether by appeal or otherwise, to this settlement. The Claims Administrator will send a copy of your objection to all Parties involved in the Lawsuit who will file all objections with the Court within 10 calendar days after the above postmark deadline to submit objections.

If you submit an objection, you will remain bound by the settlement if finally approved. If you do not want to be bound by the settlement if finally approved, you must opt out of the settlement. However, you may not assert an objection if you opt out of the settlement.

If you are covered by the settlement and you do not want to participate in the settlement, you may opt out of the settlement. If you opt out of the settlement, you may not object to the settlement, shall not receive any Settlement Payments, and shall not be bound by the release provisions in the Settlement Agreement. However, notwithstanding your decision to opt out, if the Court grants final approval of the settlement and you otherwise qualify to participate in the settlement as it pertains to the PAGA claims, you will still receive a settlement check in the mail associated with those claims, and you may not opt out of an approved PAGA settlement.

In order to opt out, you must take the steps below. Failure to do so will be deemed a waiver of your request to opt out of the settlement, and you will be bound by the Released Class Claims:

Any request for exclusion that does not include all required information or that is not submitted on a timely basis will be deemed null, void, and ineffective. A request for exclusion shall be deemed to be submitted as of the postmarked date. If you submit both a request for exclusion and an objection, your objection will be deemed invalid and your request for exclusion will be granted.

If you validly request to be excluded from the Settlement, you will not be able to participate in the settlement and you will not receive an Individual Settlement Payment for the release of the Released Class Claims. Notwithstanding, should the Court grant final approval of the settlement and you worked in a Covered Position in California during the PAGA Period, you will still receive a Settlement Payment associated with the resolution of the PAGA claims in this lawsuit and you will be bound by the PAGA Release.

This notice summarizes the Lawsuit, settlement, and related matters. For more information, you may contact the Claims Administrator or Class Counsel:

You also may view the Settlement Agreement, complaint, and other documents from the Lawsuit by using “PACER” at the Court’s website (http://www.cacd.uscourts.gov/home) or visiting the Court Clerk’s office during normal working hours.

PLEASE DO NOT CALL THE COURT FOR INFORMATION REGARDING THE SETTLEMENT.