The Terms of the Settlement: Where the Money Goes
Under the terms of the settlement, the total amount of $15.5 million will be divided as follows:
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$8.61 million in PAGA penalties, of which 75% ($6.46 million) will go to the California Labor & Workforce Development Agency.
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The remaining 25% will be distributed to the affected workers.
Plaintiffs’ legal team plans to seek 40% of the total settlement amount, equating to $6.2 million, plus up to $565,000 in expenses. Additionally, two named plaintiffs, Abrishamcar and Kapur, are set to receive PAGA representative awards of $65,000 and $45,000, respectively.
A Hard-Fought Victory After Years of Legal Battles
The legal journey to this point has been nothing short of turbulent. Oracle initially tried to strike the complaint in 2015, but the plaintiffs fought back, adding additional claims and expanding the case. After securing partial summary judgment in their favor in 2018, the plaintiffs faced years of court battles, including two trials and motions to arbitrate the case.
In 2022, a California Court of Appeal ruling opened the door for Oracle to push for arbitration of individual claims, leading to further delays and negotiations. However, in December 2024, a breakthrough occurred when both sides engaged in mediation. The settlement came after months of back-and-forth, culminating in an agreement that would finally put an end to this protracted dispute.
