Thomas E. Perez et al v. CCA Educorp, Inc. et al

Filing 7

CONSENT JUDGMENT by Judge S. James Otero in favor of Thomas E. Perez against Defendant CCA EDUCORP, INC., doing business as CAREER COLLEGES OF AMERICA, Defendant JEFF MEISEL, individually and as managing agent of corporate defendant, and Defendant R ON SCHAECHTER, individually and as managing agent of corporate defendant. Defendants are permanently enjoined and restrained from violating the provisions of the FLSA Act. Defendants, jointly and severally, shall not continue to withhold payment of $48,874.90, which represents the unpaid minimum wage and overtime compensation hereby found to be due under the FLSA, for the period from November 23, 2013, through December 22, 2013, to the present and former employees named in Exhibit A, attached hereto. (SEE DOCUMENT FOR OTHER SPECIFICS). ( MD JS-6. Case Terminated ) (lc)

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JANET M. HEROLD
Regional Solicitor
DANIEL CHASEK
Associate Regional Solicitor
California Bar No. 186968
KATHERINE KASAMEYER
Trial Attorney
California Bar No. 261820
United States Department of Labor
Office of the Solicitor
90 Seventh Street, Suite 3-700
San Francisco, California 94103
Telephone: [phone]
Facsimile: [phone]
Email: [e-mail]

JS-6

Attorneys for Plaintiff, Thomas E. Perez,
Secretary of Labor,
United States Department of Labor
UNITED STATES DISTRICT COURT FOR THE
CENTRAL DISTRICT OF CALIFORNIA

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) HON. S. James Otero
)
) Case No.: 2:14-CV-09472
Plaintiff,
)
v.
)
)
CCA EDUCORP, INC., a corporation
)
CONSENT JUDGMENT
doing business as CAREER COLLEGES )
OF AMERICA; JEFF MEISEL,
)
individually and as a managing agent of
)
corporate defendant; and RON
)
SCHAECHTER, individually and as
)
managing agent of corporate defendant,
)
Defendants.
)
___________________________________ )

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Plaintiff, THOMAS E. PEREZ, Secretary of Labor, United States

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THOMAS E. PEREZ, Secretary of Labor,
United States Department of Labor,

Department of Labor (the “Secretary”); Defendant CCA EDUCORP, INC., doing

1 business as CAREER COLLEGES OF AMERICA, Defendant JEFF MEISEL,
2 individually and as managing agent of corporate defendant, and Defendant RON
3 SCHAECHTER, individually and as managing agent of corporate defendant
4 (collectively “Defendants”), have agreed to resolve the matters in controversy in
5 this civil action and consent to the entry of this Consent Judgment in accordance
6 herewith:
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A.

The Secretary has filed a Complaint alleging that Defendants violated

8 provisions Sections 6, 7, 11(c), 15(a)(2) and 15(a)(5) of the Fair Labor Standards
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Act of 1938, as amended (“FLSA” or the “Act”). 29 U.S.C. §§ 206, 207, 211(c),
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215(a)(2), and (5).
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B.
Defendants have retained defense counsel and have been advised by
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counsel in this matter;
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C.
Defendants waive service of process and acknowledge receipt of a
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copy of the Secretary’s Complaint;
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D.
Defendants neither admit nor deny the violations alleged in the
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Complaint.
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E.
The Secretary and Defendants waive Findings of Fact and
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Conclusions of Law;
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F.
Defendants admit the Court has jurisdiction over the parties and
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subject matter of this civil action and that venue lies in the district court for the
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22 Central District of California.
G.

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Defendants and the Secretary agree to the entry of this Consent

24 Judgment in settlement of this action, without further contest.
H.
Defendants understand and agree that demanding or accepting any of
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26 the funds due employees under this Consent Judgment or threatening any
[PROPOSED] CONSENT J.

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1 employee or retaliating against any employee for accepting money due under this
2 Consent Judgment or for exercising any of their rights under the FLSA is
3 specifically prohibited by this Consent Judgment and may subject the Defendants
4 to equitable and legal damages, including punitive damages and civil contempt.
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I.

Defendants acknowledge that Defendants and any individual or entity

6 acting on their behalf or at their direction have notice of, and understand, the
7 provisions of this Consent Judgment.
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It is therefore, upon motion of the attorneys for the Secretary, and for cause
shown,

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ORDERED, ADJUDGED, AND DECREED that pursuant to Section 17
of the FLSA, 29 U.S.C. § 217, Defendants, their officers, agents, servants,
employees, and all persons in active concert or participation with them, are
permanently enjoined and restrained from violating the provisions of the Act, in
any of the following manners:

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1.

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Defendants shall not, contrary to Sections 6 and 15(a)(2) of the Act,

29 U.S.C. §§ 206, 215(a)(2), employ any of their employees at rates less than the
applicable federal minimum wage in workweeks when said employees are engaged
in commerce and in the production of goods for commerce or are employed in an
enterprise engaged in commerce or in the production of goods for commerce,
within the meaning of the FLSA.
2.

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Defendants shall not, contrary to Section 7 and 15(a)(2) of the Act, 29

23 U.S.C. §§ 207, 215(a)(2), fail to pay to their employees the half time premium for
24 hours worked in excess of 40 hours in a work week when said employees are
25 engaged in commerce and in the production of goods for commerce or are
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[PROPOSED] CONSENT J.

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1 employed in an enterprise engaged in commerce or in the production of goods for
2 commerce, within the meaning of the FLSA.
3

3.

Defendants shall not, contrary to Sections 11(c) and 15(a)(5) of the

4 Act, 29 U.S.C. §§ 211(c), 215(a)(5), fail to make, keep, preserve, and make
5 available to authorized agents of the Secretary for inspection, transcription, and/or
6 copying, upon demand for such access, records of its employees and of the wages,
7 hours, and other conditions and practices of employment maintained by
8 Defendants as prescribed by the regulations found in 29 C.F.R. Part 516 that are
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issued, and from time to time amended, pursuant to section 11(c) of the Act, 29
U.S.C. § 211(c).

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4.

Defendants, jointly and severally, shall not continue to withhold

payment of $48,874.90, which represents the unpaid minimum wage and overtime
compensation hereby found to be due under the FLSA, for the period from
November 23, 2013, through December 22, 2013, to the present and former

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employees named in Exhibit A, attached hereto and made a part hereof, in the
amounts set forth therein.
5.

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Defendants shall not request, solicit, suggest, or coerce, directly, or

indirectly, any employee to return or to offer to return to Defendants, any of its
officers, or to anyone else for any of the Defendants, any money in the form of
cash, check, or any other form, for wages previously due or to become due in the

22 future to said employee under the provisions of this judgment or the Act; nor shall
23 Defendants, any of their officers, or anyone acting for any of the Defendants,
24 receive from any employee, either directly or indirectly, any money in the form of
25 cash, check, or any other form, for wages heretofore or hereafter paid to said
26 employee under the provisions of this judgment or the Act; nor shall Defendants,
[PROPOSED] CONSENT J.

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1 any of their officers, or anyone else for any of the Defendants, discharge or in any
2 other manner discriminate, nor solicit or encourage anyone else to discriminate,
3 against any such employee because such employee has received or retained money
4 due to him from the Defendants under the provisions of this judgment or the Act.
5 Defendants shall pay all wages earned by their employees “free and clear,” as
6 required by 29 C.F.R. § 531.35.
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FURTHER, JUDGMENT IS HEREBY ENTERED, pursuant to Section

8 16(c) of the Act, 29 U.S.C. § 216(c), in favor of the Secretary and against
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Defendants in the total amount of $48,874.90.
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6.
Defendants shall pay to the Secretary the sum of $48,874.90 which
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represents the unpaid minimum wage and overtime compensation hereby found to
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be due, for the period from November 23, 2013, through December 22, 2013, to
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the present and former employees named in Exhibit A, attached hereto and made a
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part hereof, in the amounts set forth herein. Defendants shall pay this amount in the
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installments set forth in Exhibit B as indicated in paragraph 7.
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7.
To accomplish the requirements of paragraph 6 of this Consent
17
Judgment, Defendants shall deliver to Daniel Pasquil, District Director, West
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Covina District Office, Wage and Hour Division, United States Department of
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Labor, 100 North Barranca Street, Suite 850, West Covina, CA 91791, the
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following:
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a.
Within fourteen calendar days of the entry of this Consent
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Judgment, a schedule in duplicate bearing Defendants’ names with CCA

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EDUCORP, INC.’s employer identification number, address, and phone

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number and showing the name, last known (home) address, social security

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[PROPOSED] CONSENT J.

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number, telephone number (if known), and gross backwage amount for each

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person named in the attached Exhibit A.

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b.

Defendants shall deliver to Wage Hour the payments set forth

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on the attached Exhibit B. Each payment shall be made by a certified, or

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cashier’s check or money order and includes interest calculated at 1% per

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year on the unpaid balance until the balance is paid in full. Each check shall

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have Defendants’ names and “BWs + Int.” written on it, payable to the order

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of the “Wage and Hour Div., Labor,” and be delivered on or before the date

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the payment is due as set forth in Exhibit B. Defendants may pay the

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remaining balance due in full at any time with no additional penalty or

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interest.

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c.

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In the event of any default in the timely making of any payment

due hereunder, the full amount of backwages which then remain unpaid, plus

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post-judgment interest at the rate of 10% per year, from the date of this

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Judgment until paid in full, shall become due and payable upon the

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Secretary’s sending by ordinary mail a written demand to the last business

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address of the defendants then known to the Secretary. For the purposes of

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this paragraph, a “default” is deemed to occur if payment is not delivered

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within five (5) calendar days of the due date listed in Exhibit B.

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8.

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The Secretary shall allocate and distribute the remittances, or the

22 proceeds thereof, less required deductions for employees’ share of Social Security
23 and withholding taxes to the persons named in the attached Exhibit A, or to their
24 estates if that be necessary, in his sole discretion, and any money not so paid within
25 a period of three years from the date of its receipt, because of an inability to locate
26 the proper persons or because of their refusal to accept it, shall be then deposited in
[PROPOSED] CONSENT J.

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1 the Treasury of the United States, as miscellaneous receipts, pursuant to 29 U.S.C.
2 § 216(c). The Secretary shall be responsible for deducting the appropriate
3 employee’s share of FICA and federal income taxes from the amounts paid to the
4 persons named in the attached Exhibit A, and for remitting said deductions to the
5 appropriate federal agencies. Defendants remain responsible for the employer
6 portion of these taxes.
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9.

Within ten calendar days of the entry of this Consent Judgment,

8 Defendants shall post copies of Exhibit C at each of Defendants’ campuses for no
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less than one-hundred eighty (180) days. Exhibit C summarizes the terms of this
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Consent Judgment and the employees’ rights under the FLSA.
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10.
Defendants, their officers, agents, servants, and employees and those
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persons in active concert or participation with them, shall not in any way directly
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or indirectly, demand, require or accept any of the backwages listed on the attached
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Exhibit A. Defendants shall not threaten or imply that adverse action will be taken
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against any employee because of their receipt of funds due under this Consent
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Judgment. Violation of this paragraph may subject Defendants to equitable and
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legal damages, including punitive damages and civil contempt.
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11. Defendants, their officers, agents, servants, and employees and those
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persons in active concert or participation with them, shall not in any way retaliate
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or take any adverse employment action, or threaten or imply that adverse action
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22 will be taken against any employee who exercises or asserts his or her rights under
23 the FLSA or provides information to any public agency investigating compliance
24 with the FLSA. Violation of this paragraph may subject the Defendants to
25 equitable and legal damages, including punitive damages and civil contempt.
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[PROPOSED] CONSENT J.

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12.

The filing, pursuit, and resolution of this proceeding with the filing of

2 this Consent Judgment shall not act as or be asserted as a bar to any action under
3 Section 16(b) of the FLSA, 29 U.S.C. § 216(b), as to any employee not named on
4 the Exhibit A attached to the Consent Judgment and incorporated hereto by
5 reference, nor as to any employee named on the Exhibit A for any period not
6 specified herein for the back wage recovery provisions.
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13.

Each party shall bear all fees and other expenses (including court

8 costs) incurred by such party in connection with any stage of this proceeding to
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date.
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ORDERED that the parties to the instant Complaint shall comply with the
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terms of this Consent Judgment;
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ORDERED that this Court shall retain jurisdiction of this action for
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purposes of enforcing compliance with the terms of this Consent Judgment; and
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APPROVED AND SO ORDERED:

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Dated this ___18th_____ day of ___December _, 2014.

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___________________________________

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HON. UNITED STATES JUDGE

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[PROPOSED] CONSENT J.

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For the Defendants:
The Defendants hereby appear, consent
2 to the entry of this Consent Judgment,
and waive notice by the Clerk of Court:
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M. PATRICIA SMITH
Solicitor of Labor

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Dated: ____________________

JANET M. HEROLD
Regional Solicitor

6 For CCA EDUCORP, INC.:
7 __________________________
8

DANIEL CHASEK
Associate Regional Solicitor

9 __________________________
10 Position
11 Dated: ____________________
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For: JEFF MEISEL
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14 By: _______________________
JEFF MEISEL, individually
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___________________________
KATHERINE M. KASAMEYER
Trial Attorney
Dated:______________________
Attorneys for U.S. Dep’t of Labor

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Dated: _____________________
17 For: RON SCHAECHTER
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By: _______________________
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RON SCHAECHTER
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Reviewed as to Form and Content:

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____________________________
23 CHAIM WOOLF, Esq.
Woolf Gafni & Fowler, LLP
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108550 Wilshire Blvd., Suite 510
25 Los Angeles, CA 90024
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[PROPOSED] CONSENT J.

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EXHIBIT A

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FIRST NAME
TANISHA
BRENDA
JOANNE
BRITTANY
DEBRA
CYNTHIA
STEPHANIE
MARIA
TAMARA
RAISA
MARICELA
MARIA

LAST NAME
ALVAREZ
BAKER
BRENNAN
BULLINGER
CALLENDER
CARRASCO
CESAREO
CONTRERAS
CROSSLAND
DEL CID
DIAZ
DIAZ
DOLORES
MARIA
BALDERAS
ELIE
DVORIN
VANESSA
GALINDO
VANESSA
GARCIA
PATRICIA
GOMEZ
MELISSA
GONZALEZ
MARILYN
HERNANDEZ
NSENGA
HUGHES
MARIA
JIMENEZ
RYAN
KNIGHT
SUGEY
LOPEZ
LILIA
LOPEZ
EDWARD
LOUIS
FARRAH
MCLEAN
ROYA
MOGHADAM
LINDA
MORALES
MAGDALENA MORENO
MONICA
MORENO
NIMSY
PACHECO
AVIDEH
PALADINO

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[PROPOSED] CONSENT J.

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BACK
WAGES
$507.50
$1,036.75
$250.13
$261.00
$605.38
$2,038.45
$759.44
$993.25
$817.44
$1,029.50
$1,223.50
$681.50
$1,368.56
$1,044.00
$801.13
$1,281.42
$855.50
$686.94
$293.63
$773.94
$882.69
$607.19
$969.69
$656.13
$1,044.00
$1,009.56
$625.31
$786.63
$1,472.72
$1,027.69
$1,369.56
$1,044.00

JEFF
MAYRA
ANGELA
CESAR
RICHARD
ISRAEL
SHARON
MARIA
EMMA
JACQUELINE
VERONICA
KEE
RICHARD
MARIA
SHARNISE
LOURDES
JENNIFER

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8
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PALADINO
PENALOZA
PERDOMO
PEREZ
RAMIREZ
RODRIGUEZ
ROUSSEAU
RUIZ
SANCHEZ
SANCHEZ
SARMIENTO
SHIN
SYLSTRA
TORO
TURNER
VALENCIA
WILLIAMSON

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[PROPOSED] CONSENT J.

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$1,044.00
$873.63
$926.19
$1,216.25
$1,009.57
$2,552.96
$842.81
$1,583.81
$1,348.13
$1,044.00
$1,252.50
$1,058.50
$1,044.00
$986.00
$761.25
$1,939.92
$587.25
$48,874.90

EXHIBIT B

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Payment
No.

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3

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26
27
28
29
30
31
32

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Payment
Date

Total
Payment

1/2/2015
2/1/2015
3/1/2015
4/1/2015
5/1/2015
6/1/2015
7/1/2015
8/1/2015
9/1/2015
10/1/2015
11/1/2015
12/1/2015
1/2/2016
2/1/2016
3/1/2016
4/1/2016
5/1/2016
6/1/2016
7/1/2016
8/1/2016
9/1/2016
10/1/2016
11/1/2016
12/1/2016
1/2/2017
2/1/2017
3/1/2017
4/1/2017
5/1/2017
6/1/2017
7/1/2017
8/1/2017

Payment Includes
Backwages Totaling:

$ 1,378.67
$1,378.67
$1,378.67
$1,378.67
$1,378.67
$1,378.67
$1,378.67
$ 1,378.67
$1,378.67
$1,378.67
$1,378.67
$1,378.67
$1,378.67
$1,378.67
$1,378.67
$1,378.67
$1,378.67
$1,378.67
$1,378.67
$1,378.67
$1,378.67
$1,378.67
$1,378.67
$1,378.67
$1,378.67
$1,378.67
$1,378.67
$1,378.67
$1,378.67
$1,378.67
$1,378.67
$1,378.67

$1,337.94
$1,339.05
$1,340.17
$ 1,341.29
$1,342.40
$1,343.52
$1,344.64
$1,345.76
$1,346.88
$1,348.01
$1,349.13
$1,350.25
$1,351.38
$1,352.51
$1,353.63
$1,354.76
$1,355.89
$1,357.02
$1,358.15
$1,359.28
$1,360.42
$1,361.55
$1,362.68
$1,363.82
$1,364.96
$1,366.09
$1,367.23
$1,368.37
$1,369.51
$1,370.65
$1,371.79
$1,372.94

/// 

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[PROPOSED] CONSENT J.

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Payment Includes
Interest totaling:
$40.73
$39.61
$38.50
$ 37.38
$36.26
$35.15
$34.03
$32.90
$ 31.78
$ 30.66
$29.54
$28.41
$27.29
$26.16
$25.03
$23.91
$22.78
$21.65
$20.52
$19.39
$18.25
$ 17.12
$ 15.98
$14.85
$13.71
$12.57
$11.44
$10.30
$9.16
$8.02
$6.87
$ 5.73

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35
36

1
2
3
4

9/1/2017
10/1/2017
11/1/2017
12/1/2017
TOTAL

$1,378.67
$1,378.67
$1,378.67
$1,377.52
$49,630.90

$1,374.08
$ 1,375.23
$ 1,376.37
$1,376.37

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7
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[PROPOSED] CONSENT J.

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$4.59
$ 3.44
$ 2.29
$1.15

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EXHIBIT C

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LEGAL NOTICE TO ALL EMPLOYEES

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The U.S. Department of Labor brought a lawsuit against CCA EDUCORP,

4 INC., doing business as CAREER COLLEGES OF AMERICA, JEFF MEISEL,
5 and RON SCHAECHTER. To resolve the lawsuit, the United States District Court
6 entered an Order requiring CAREER COLLEGES OF AMERICA, JEFF MEISEL,
7 and RON SCHAECHTER to pay back wages and liquidated damages and take
8 other affirmative steps to achieve compliance with the Fair Labor Standards Act.
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All employees can help CAREER COLLEGES OF AMERICA, JEFF MEISEL,
and RON SCHAECHTER comply with the Court’s Order. If you think you are
not being paid in accordance with the law, call the U.S. Department of Labor,
Wage and Hour Division, at [phone] or 1-866-4-USWAGE (1-866-4879243) and your name will be kept confidential. Interpreter services are
available.

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The Fair Labor Standards Act provides that employers must make

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accurate records of time worked.
The Fair Labor Standards Act provides that employees must be paid the

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minimum wage for all hours worked. In addition, all employees must be paid the
overtime rate of time and one half their regular rate for hours worked over 40 in a
workweek. All hourly employees are entitled to overtime when they work over 40

22 hours.
You also have employment rights under California state law, such as prompt

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24 payment of wages, and you may contact the California Division of Labor
25 Standards Enforcement, at [phone], for any questions you may have about
26 those rights.
[PROPOSED] CONSENT J.

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