Larkin v. Yelp! Inc.

Filing 32

MOTION for Settlement Preliminary Approval filed by Ahmad Deanes, Justin Larkin, Anthony Tijerino. Motion Hearing set for 6/1/2012 01:30 PM in Courtroom 5, 17th Floor, San Francisco before Hon. Edward M. Chen. Responses due by 5/11/2012. Replies due by 5/18/2012. (Attachments: # 1 Declaration Declaration of Peter Rukin, # 2 Declaration Declaration of Rosa Vigil-Gallenberg, # 3 Declaration Declaration of Tom Urmy, # 4 Proposed Order Proposed Order)(Rukin, Peter) (Filed on 4/27/2012)

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1 2 3 4 5 6 7 8 9 Peter Rukin (SBN 178336) RUKIN HYLAND DORIA & TINDALL LLP 100 Pine Street, Suite 2150 San Francisco, CA 94111 Telephone: (415) 421-1800 Facsimile: (415) 421-1700 E-mail: peterrukin@rhdtlaw.com Rosa Vigil-Gallenberg (SBN 251872) GALLENBERG PC 9701 Wilshire Blvd. Suite 1000 Beverly Hills, CA 90071 Telephone: (310) 295-1654 Facsimile: (310) 733-5654 Email: rosa@gallenberglaw.com 12 Todd Heyman (pro hac vice application to be filed) SHAPIRO HABER & URMY LLP 53 State Street 13th Floor Boston, MA 02109 Telephone: (617) 439-3939 Facsimile: (617) 439-0134 E-mail: theyman@shulaw.com 13 Attorneys for Representative Plaintiffs 10 11 14 15 UNITED STATES DISTRICT COURT 16 NORTHERN DISTRICT OF CALIFORNIA 17 SAN FRANCISCO DIVISION 18 19 20 JUSTIN LARKIN, ANTHONY TIJERINO, and AHMAD DEANES, on behalf of themselves and all others similarly situated, 21 22 23 24 Plaintiffs, v. YELP!, INC., Defendant. 25 26 ) ) ) ) ) ) ) ) ) ) ) ) ) ) Case No. 3:11-cv-01503-EMC DECLARATION OF PETER RUKIN IN SUPPORT OF PLAINTIFFS’ MOTION FOR PRELIMINARY APPROVAL OF CLASS AND COLLECTIVE ACTION SETTLEMENT Date: June 1, 2012 Time: 1:30 p.m. Courtroom: 5-17th Floor Judge: Hon. Edward M. Chen 27 28 Case No. 3:11-cv-01503-EMC RUKIN DECL. ISO PRELIMINARY APPROVAL 1 I, Peter Rukin, hereby declare that: 2 1. I am a member in good standing of the State Bar of California, a partner at Rukin 3 Hyland Doria & Tindall LLP, and co-counsel for Plaintiffs. I make this declaration of personal 4 knowledge and if called as a witness I could and would testify competently to the facts stated 5 herein. 6 2. This Declaration is submitted in support of Plaintiffs’ Motion for Preliminary 7 Approval of Class and Collective Action Settlement. 8 Background and Experience 9 3. The following is a brief description of my professional background. I am a 1991 10 graduate of New York University School of Law. Following graduation from law school, I 11 served as law clerk to U.S. District Court Judge Harry D. Leinenweber in Chicago. Thereafter, I 12 practiced law at employment law firms in Chicago (Stowell & Friedman) and New York 13 (Vladeck Waldman Elias & Engelhard), representing employees in individual and class action 14 cases, and served as an Assistant Corporation Counsel for the City of Chicago Law Department. 15 I also served as Of Counsel in the Employment Law Department at Paul, Hastings, Janofsky & 16 Walker in San Francisco, where from January 2000 until March 2003, I represented employers in 17 a wide array of complex employment matters. Since forming my own firm in April 2003, I have 18 represented employees in individual, class action, and collective action lawsuits. 19 4. Since 2003, my firm has been appointed class counsel in the following cases: 20 Pryor v. OAS, JAMS Binding Arbitration No. 1100052926 (claimants’ contested motion for class 21 certification in wage and hour arbitration); Fernandez v. KM Industries (N.D.Cal. Case No. 4:06- 22 cv-07339-CW) (plaintiffs’ contested motion for class certification in ERISA action); Flynn v. 23 Angel Studios, Inc. (San Diego Superior Court Case No. GIN 054909) (certification of settlement 24 class in wage and hour action); Broome v. Google, Inc. (Santa Clara Superior Court Case No: 1- 25 08-CV-112386) (certification of settlement class in wage and hour action); Martinez v. Bank of 26 the West (San Francisco Superior Court Case No. CGC-06-454959) (certification of settlement 27 class in wage and hour action); Krzesniak v. Cendant Corporation (N.D.Cal. Case No.: 3:05-cv- 28 5156) (Plaintiff’s contested motion for class certification in wage and hour action); Torres v. ABC Case No. 3:11-cv-01503-EMC -1- RUKIN DECL. ISO PRELIMINARY APPROVAL 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 Security Service (Alameda County Superior Court Case No. RG04158744) (Plaintiffs’ contested motion for class certification in wage and hour action); Wilson v. Sony Computer Entertainment America, Inc. (San Mateo County Superior Court Case No. 444815) (certification of settlement class in wage and hour action); Rodriguez v. PETCO Animal Supplies Stores, Inc. (Santa Clara County Superior Court Case No. 1-06-CV-0060094) (certification of settlement class in wage and hour action); Kohler v. Sierra Pacific Industries (El Dorado County Superior Court Case No. PC20050094) (certification of settlement class in wage and hour action); Qutami v. T-Mobile (Alameda County Superior Court Case No. RG04186460) (certification of settlement class in wage and hour action); Goddard v Longs Drug Stores, California, Inc. (Alameda County Superior Court Case No. RG04141291) (certification of settlement class in wage and hour action); Gray v. ABC Security Service, Inc. (Alameda County Superior Court Case No. RG04141422) (certification of settlement class in wage and hour action); Sheppard v. The Davey Tree Expert Company (San Francisco Superior Court Case No. CGC-03-426108) (certification of settlement class in wage and hour action); McKenzie v. American Commercial Claims Administrators, Inc., (San Francisco Superior Court Case No. CGC-04-428807) (certification of settlement class in wage and hour action); and Newman v. Kimpton Hotel & Restaurant Group, Inc., (San Francisco Superior Court Case No. CGC04429762) (certification of settlement class in wage and hour action). 5. I have written and spoken on employment law and litigation, and have closely followed legal developments in the area. I am co-author of two chapters in the CEB practice manual California Wage and Hour Law and Litigation, and have served as Revisions Editor for the wage and hour chapters of the Matthew Bender treatise California Employment Law. I am currently an advisor to the State Bar of California Labor and Employment Section Executive Committee (having served a three year term from 2008-2011), and am a member of the Bar Association of San Francisco Labor and Employment Section Executive Committee. This Litigation 6. I have been the attorney at my firm primarily responsible for the litigation of this Case No. 3:11-cv-01503-EMC -2- RUKIN DECL. ISO PRELIMINARY APPROVAL 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 action since its inception. Our firm and our co-counsel, Shapiro Haber & Urmy LLP and Gallenberg PC, spent months investigating this case before filing the action. That pre-filing investigation included discussions with numerous Account Executives and a review of the representative Plaintiffs’ documents and records. After filing the case, we began discussions with Yelp’s counsel regarding the issues in the case, including the possible mediation of the action. We requested and received a production of relevant documents and data, including documents reflecting Yelp’s compensation policies regarding Account Executives, employment agreements, and workweek data. Additionally, Yelp produced an analysis reflecting time worked by a representative sample of Account Executives, using data gathered from systems used by Account Executives. 7. On May 11, 2011, the parties executed an agreement to toll the FLSA statute of limitations effective May 11, 2011 for all absence collective action members. 8. On September 15, 2011, the parties engaged in a full day mediation session with the Mark Rudy of Rudy, Exelrod, Zieff & Lowe. Although the parties did not reach a settlement at the mediation, negotiations continued for several months. Those negotiations ultimately resulted in the Settlement Agreement attached as Exhibit 1 to this declaration. 9. Having explored and considered the evidence in the case and the parties’ respective arguments regarding liability, I believe that this Settlement is fair, adequate, and reasonable given the risks of continued litigation and the benefits that the Settlement provides Class Members. If Plaintiffs were to prevail at class certification and trial, and were to establish that Class Members worked an average of five hours of overtime per week, Plaintiffs’ counsel’s valuation, based on workweek and salary information provided by Defendants, is that the total unpaid overtime owed to Class Members during the class period would be approximately $3,480,000, with damages to the California Class of approximately $2,850,000 and to the National Class of approximately $630,000 Based on these calculations and assumptions, the Maximum Settlement Amount that will be distributed to Class Members (exclusive of fees and costs, enhancement award and payment of the PAGA penalty) represents twenty five percent of Case No. 3:11-cv-01503-EMC -3- RUKIN DECL. ISO PRELIMINARY APPROVAL 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 the potential actual damages recovery. The maximum number of workweeks worked by California Class Members during the liability period is 248. The maximum number of workweeks worked by a National Class Member is 185. 10. In support of its contention that Class Members worked little or no overtime hours, Yelp provided Plaintiffs’ Counsel with data, which Yelp contends reflects that Class Members worked between 12 minutes and 2 hours and 20 minutes overtime per workweek. 11. Based on my conversations with Class Members, I believe this Settlement affords relief to Class Members who likely would never have filed individual claims for unpaid overtime wages. 12. I have litigated many wage and hour class and collective actions and have enhancement award approval as high as $35,000. In my opinion, the proposed enhancement payments of $5,000 for the named Plaintiffs are reasonable. The named Plaintiffs have assisted in the investigation, prosecution, and mediation of the action and accepted the risk of an adverse result. Each Plaintiff will, pursuant to the proposed settlement, provide Yelp with a full release of all known and unknown claims that he may have. Because Plaintiffs acknowledged that the settlement provided a substantial benefit to the class members to whom they owed a fiduciary duty, they agreed to these terms. Further, each Plaintiff has incurred the risk that he will experience retaliation for having participated in this litigation. 13. Simpluris, Inc. is a well-known and established claims administrator. Plaintiffs’ counsel have used Simpluris to administer the claims process in other cases, and based on my experience the appointment of Simpluris for the fee it has agreed to charge in this case is fair, adequate and reasonable. 14. Plaintiffs’ counsel have incurred significant attorney time to date, including to investigate the case, and expect to incur substantial additional time and expenses in connection the administration of the settlement and final approval process. I declare under penalty of perjury, under the laws of the United States, that the foregoing is Case No. 3:11-cv-01503-EMC -4- RUKIN DECL. ISO PRELIMINARY APPROVAL 1 2 true and correct. Executed this 27th of April 2012, at San Francisco, California. 3 /s/ Peter Rukin PETER RUKIN 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 Case No. 3:11-cv-01503-EMC -5- RUKIN DECL. ISO PRELIMINARY APPROVAL EXHIBIT 1 EXHIBIT 2 16620979.2 1 2 3 4 5 6 7 8 UNITED STATES DISTRICT COURT 9 NORTHERN DISTRICT OF CALIFORNIA 10 11 12 JUSTIN LARKIN, ANTHONY TIJERINO, and AHMAD DEANES, on behalf of themselves and all others similarly situated, Plaintiffs, 13 14 15 CASE NO. 11-CV-01503 EMC [THE CALIFORNIA NOTICE] v. YELP! INC., Defendant. 16 17 18 19 20 21 22 23 24 25 26 27 28 16620979.2 NOTICE TO CLASS ACTION MEMBERS – Case No. 11-CV-01503 EMC 1 2 3 4 5 6 NOTICE OF PENDING CLASS ACTION, ASSOCIATED SETTLEMENT AND FINAL APPROVAL HEARING -- PLEASE READ THIS NOTICE CAREFULLY AS YOUR LEGAL RIGHTS MAY BE AFFECTED IF YOU WERE EMPLOYED BY YELP! INC. (“YELP”) AS AN ACCOUNT EXECUTIVE (INCLUDING POSITIONS INCORPORATING THE TITLES ACCOUNT EXECUTIVE, ACCOUNT EXECUTIVE TRAINEE, ASSOCIATE ACCOUNT EXECUTIVE TRAINEE, ASSOCIATE ACCOUNT EXECUTIVE, JUNIOR ACCOUNT EXECUTIVE, SALES ASSOCIATE, SALES REPRESENTATIVE, AND SENIOR ACCOUNT EXECUTIVE) IN THE STATE OF CALIFORNIA BETWEEN MARCH 29, 2007 AND DECEMBER 31, 2011 (THE “CALIFORNIA CLASS”), THIS CLASS ACTION SETTLEMENT MAY AFFECT YOUR RIGHTS AND YOU MAY BE ENTITLED TO PARTICIPATE IN A SETTLEMENT. 7 8 PLEASE READ THIS NOTICE CAREFULLY. PLEASE DO NOT CONTACT THE COURT OR YELP REGARDING THIS MATTER. 9 THIS IS A COURT-APPROVED NOTICE. THIS IS NOT A SOLICITATION FROM A LAWYER. YOU HAVE NOT BEEN SUED. 10 11 12 THE FOLLOWING RECITATION DOES NOT CONSTITUTE THE FINDINGS OF THE COURT. IT SHOULD NOT BE UNDERSTOOD TO BE AN EXPRESSION OF THE COURT’S VIEWS ON THE MERITS OF ANY CLAIM OR DEFENSE RAISED BY THE PARTIES. 13 14 15 I. INTRODUCTION AND SUMMARY This is to notify you of a lawsuit against Yelp! Inc. (“Yelp”) and the proposed class action 16 settlement of that lawsuit. The lawsuit, entitled Larkin v. Yelp! Inc., Case No. 11-CV-01503 17 EMC, United States District Court for the Northern District of California, concerns the 18 compensation of Account Executives (including all of the positions listed above). You have 19 received this Notice because Yelp’s records suggest that you may be one of the current or former 20 Account Executives employed by Yelp in California during the pertinent period. This Notice 21 provides instructions on the options available to you – in particular, it will explain your options: 22 23 24 You Can Submit A Claim Form and Receive a Settlement Payment 25 26 To claim your settlement payment, you must complete and submit the enclosed claim form by [BY NOTICE RESPONSE DATE]. Your settlement share will be at least $[MERGE SETTLEMENT AMOUNT] and possibly more if other class members do not file claim forms and participate. 27 28 16620979.2 -1- NOTICE TO CLASS ACTION MEMBERS – Case No. 11-CV-01503 EMC 1 You Can Object to the terms of the Settlement As discussed below, if you wish to object to any part of the Settlement, you may explain why you do not like the Settlement, provided you do so by [NOTICE RESPONSE DATE]. You Can Request Exclusion From (or “opt out of”) the Settlement As discussed below, if you do not wish to be included in the Settlement and do not wish to receive a Settlement payment, you may prepare, sign, date, and timely mail to the Settlement Administrator a request to exclude yourself from the settlement of this Class Action. If you wish to do so, you must send this correspondence by [NOTICE RESPONSE DATE]. You Can Do Nothing and Be Bound By the Terms of the Settlement If you do nothing, you will still be included in the California class and give up your claims against yelp under California wage and hour laws but not receive a settlement payment. 2 3 4 5 6 7 8 9 10 11 12 Please understand that this is not a notice of a lawsuit against you. You have not been 13 sued. 14 II. WHAT IS THIS LITIGATION ABOUT? 15 Plaintiffs Justin Larkin, Anthony Tijerino and Ahmad Deanes (collectively “Plaintiffs”) 16 filed this class action against Yelp. The lawsuit alleges, among other things, that Yelp violated 17 certain state and federal employment laws, including the federal Fair Labor Standards Act 18 (“FLSA”), the California Labor Code, the California Industrial Welfare Commission Wage 19 Orders, and the California Business and Professions Code, in connection with the compensation 20 of Account Executives, (including, without limitation, positions with the titles Account 21 Executive, Account Executive Trainee, Associate Account Executive Trainee, Associate 22 Account Executive, Junior Account Executive, Sales Associate, Sales Representative, and Senior 23 Account Executive). 24 The lawsuit alleges that Yelp misclassified Account Executives as “exempt” employees, 25 i.e., employees who under state and federal laws are exempt from overtime wage requirements, 26 meal and rest period requirements, and other California and federal employment law 27 requirements. The lawsuit also alleges that Yelp failed to comply with various other California 28 16620979.2 -2- NOTICE TO CLASS ACTION MEMBERS – Case No. 11-CV-01503 EMC 1 employment laws and regulations relating to recordkeeping, wage deductions, and the timing of 2 wage payments. The lawsuit is collectively brought on behalf of all current and former Account 3 Executives employed by Yelp in California at any point between March 29, 2007 and December 4 31, 2011, and all people in this group are referred to as the “California Class.” 5 Yelp has reviewed the claims in this lawsuit in detail, has denied any wrongdoing or 6 liability in this matter. Yelp is committed to compensating its employees in a lawful manner, 7 and although Yelp believes that it has ample legal and factual grounds for defending and 8 defeating the claims at hand, it has chosen to work with Plaintiffs and their counsel to resolve 9 this matter in order to avoid the further expense and burden of litigation pursuant to the 10 procedure set forth in this Notice. 11 Yelp will not retaliate against any class members for exercising or not exercising the 12 rights described in this Notice, the aforementioned lawsuit, and/or settlement, and does not 13 encourage or discourage any specific type of response. Whether and how you respond to this 14 notice will have no affect on your employment at Yelp. 15 III. DESCRIPTION OF THE SETTLEMENT 16 A. Summary of Settlement 17 On behalf of both a national and a California class, Plaintiffs Larkin and Tijerino have 18 reached a voluntary settlement agreement with Yelp. The total maximum amount of the 19 consolidated settlement is $1,250,000, with approximately two-thirds of that amount allocated to 20 the resolution of the claims of the California Settlement Class. Yelp guarantees that it will pay a 21 minimum of fifty percent of the amount set aside for payments to the California Settlement 22 Class. This means that if less than half of the money available for such payments is claimed, i.e., 23 because other class members do not file claims, and you do file a claim, your settlement payment 24 will almost certainly increase. 25 Through this settlement, neither Yelp nor its employees have admitted any liability or 26 wrongdoing. A full copy of the settlement agreement, which is entitled the Stipulation Re: 27 Settlement of Class and Collective Actions, as well as other public documents filed with regard 28 to this matter can be inspected in the Office of the Court Clerk (see below). This settlement has 16620979.2 -3- NOTICE TO CLASS ACTION MEMBERS – Case No. 11-CV-01503 EMC 1 2 been preliminary approved by the Court. California Class Members who do not opt out of the settlement will remain subject 3 to the judgment and be precluded from bringing similar claims against Yelp or any of its 4 affiliates in the future. Specifically, all California Class Members who do not opt out of the 5 settlement, whether they submit claim forms or not, will be precluded from bringing any 6 future claims concerning claims for unpaid regular or premium overtime or other 7 premium wages and/or remedies relating to meal/rest period, recordkeeping, and timing of 8 wage payment requirements. 9 Only those individuals who remain Members of the California Class will be eligible 10 to participate in this settlement and receive payment under this agreement, and only those 11 individuals who submit qualifying claim forms will receive payment. If you do not 12 complete and timely submit the Claim Form, you will still be included in the California 13 Class, but not receive a settlement payment. Those California Class Members who opt out 14 of the settlement will neither be eligible to receive any payment pursuant to this settlement, 15 nor be bound by the judgment and associated waiver or release of related claims. 16 B. What Will I get Under the Settlement If I file a Claim? 17 Under the settlement, each California Class Member who submits a Claim Form will 18 receive a minimum amount per each qualifying week worked between March 29, 2007 and 19 December 31, 2011. Currently, your estimated settlement payment is at least $[MERGE] 20 because we estimate that you worked [MERGE] qualifying weeks during the period between 21 March 29, 2007 and December 31, 2011 in California, i.e., you worked that many weeks in one 22 of the covered positions during this time frame. Again, if less than half of the money available 23 for California settlement payments is claimed, however, your settlement sum will increase to an 24 amount higher than that listed above. 25 C. Is My Settlement Payment Taxed? 26 A portion of any payment made to you under the settlement will be subject to required 27 wage withholdings and deductions, and as a result, the amount you receive will be less than the 28 gross amount listed above. Yelp will report thirty-three percent (33%) of this payment to 16620979.2 -4- NOTICE TO CLASS ACTION MEMBERS – Case No. 11-CV-01503 EMC 1 relevant government entities as a wage payment, and will report the remaining sixty-seven 2 percent (67%) as a non-wage payment. Yelp reserves the right to make any required 3 withholdings or deductions as required by applicable law, and California Class Members should 4 be advised that Yelp will report any payments made pursuant to this agreement to the Internal 5 Revenue Service and other relevant government entities (if any) as required by law. 6 Each California Class Member will be solely responsible for reporting any payment received 7 pursuant to this settlement and for paying any taxes associated with the same. Neither the Class 8 Representatives, Class Counsel, nor Yelp makes any representations concerning the tax 9 consequences of this settlement or your participation in it. If you have any questions about the 10 tax consequences of the payments you may receive under the settlement, you should consult your 11 tax advisor. 12 D. What if I think I worked More Workweeks? 13 If you believe the number of qualifying work weeks listed above in Section III.B is 14 inaccurate, please contact the Settlement Administrator or Class Counsel immediately and 15 provide them with any supporting documentation in support of your view. Remember, however, 16 that the only weeks that qualify are weeks in which you worked in one of the covered positions 17 during the pertinent time frame. So, for example, work in other positions does not count and 18 work performed in 2012 and beyond does not count. How Much Will Class Counsel Be Paid in Attorneys’ Fees? 19 E. 20 Class Counsel will request that the Court award them attorneys’ fees up to 25% of the 21 maximum settlement amount that Yelp could pay, or $312,500. This request will be subject to 22 review and approval by the Court. Yelp has agreed not to oppose this request. Class Counsel 23 will also seek reimbursement of up to $10,000 in out-of-pocket expenses incurred in this case, 24 which will also be subject the Court’s approval. Any amounts approved by the Court will 25 constitute full payment for all legal fees of Class Counsel in the action, including any work they 26 do in the future in connection with the Settlement. In the event any amount of the requested fees 27 or costs are not approved by the Court, the unawarded amount will revert to the maximum 28 settlement payout to class members. 16620979.2 -5- NOTICE TO CLASS ACTION MEMBERS – Case No. 11-CV-01503 EMC 1 F. 2 The settlement additionally provides that deductions from the Maximum Settlement What Deductions Will Be Made From the Settlement Amount? 3 Amount will be made for (1) reimbursement of settlement administration expenses not to exceed 4 $25,000; (2) enhancement payments of $5,000 to each of the three Plaintiffs for a total of 5 $15,000; (3) payment of $7,500 to the California Labor and Workforce Development Agency. 6 These estimated payments are all subject to the approval of the Court. 7 IV. 8 9 THE PEOPLE RECEIVING THIS NOTICE The Class Representatives have brought this action as a class and collective action. In class and collective actions, one or more persons bring claims on behalf of themselves and others 10 who purportedly are in similar situations or have similar claims. In other words, the Class 11 Representatives are seeking to represent those who are purportedly similarly situated and thus 12 may also have similar or related claims. In order to ensure that all California Class Members are 13 given an adequate opportunity to protect their rights, this Notice is being mailed to the last known 14 addresses of all California Class Members, and address verification measures have been taken. 15 V. THE RIGHTS AND OPTIONS OF CALIFORNIA CLASS MEMBERS You have received this Notice because Yelp’s records suggest that you are currently a 16 17 member of the conditionally certified California Class. Specifically, these records suggest that 18 you were employed by Yelp as an Account Executive in California during the pertinent period. 19 Current members of the California Class have several options: 20 21 22 (i) You may obtain a Settlement payment by completing and submitting the enclosed Claim Form as detailed below no later than _____________, 2012 (see below for more details). (ii) You may do nothing, but you will remain a member of the California Class and release your claims against Yelp under California’s wage and hour laws without receiving a Settlement payment (see below for more details). (iii) You may opt-out of the Settlement by sending a written request to opt-out of the Settlement to Class Counsel as described below no later than ___________, 2012 (see below for more details). (iv) You may object to the Settlement by submitting your written objections to Class Counsel as described below no later than _______, 2012. If you object to the Settlement, you will 23 24 25 26 27 28 16620979.2 -6- NOTICE TO CLASS ACTION MEMBERS – Case No. 11-CV-01503 EMC 1 2 still remain in the class but would only receive a Settlement payment if you also complete and submit the enclosed Claim Form (see below for more details). 3 A. How Do I Make Corrections to Name or Address? 4 If you wish to change the name or address listed on the envelope in which this Notice 5 was sent, please complete Form A attached hereto and submit it before the deadline specified on 6 the form. 7 B. 8 Current California Class Members, including you, may remain Members of the California 9 How Do I submit a Claim Form? How Do I Participate in the Settlement? Settlement Class and seek to participate in the settlement by submitting a claim for payment. 10 YOU MUST SUBMIT A CLAIM FORM TO BE PAID. To remain a Member of the 11 California Settlement Class, you need not take any action; California Class Members who do not 12 submit opt out forms will remain in the California Settlement Class, will be subject to the 13 judgment rendered in connection with this action and settlement, and will be deemed to have 14 forever released and discharged Yelp and all of its past and present affiliates, directors, officers, 15 and employees from any and all claims relating to this action and settlement. 16 California Class Members who choose this option and remain in the California 17 Settlement Class will be represented by the Class Representatives and Class Counsel. The law 18 firms acting as Class Counsel in this matter are the following: 19 20 21 22 23 24 25 26 27 28 PETER RUKIN RUKIN HYLAND DORIA & TINDALL LLP 100 Pine Street, Suite 2150 San Francisco, CA 94111 ROSA VIGIL-GALLENBERG GALLENBERG PC 9701 Wilshire Blvd. Suite 1000 Beverly Hills, CA 90212 IAN MCLOUGHLIN TOM URMY SHAPIRO HABER & URMY LLP 53 State Street, 13th Floor Boston, MA 02109 16620979.2 -7- NOTICE TO CLASS ACTION MEMBERS – Case No. 11-CV-01503 EMC 1 Alternatively, California Class Members who do not opt out of the California Settlement 2 Class may participate in this action at their own expense and may retain their own attorneys. 3 California Class Members who choose this option will be responsible for any attorney fees or 4 costs incurred as a result of this election. 5 If you choose to remain a member of the California Settlement Class and properly and 6 timely submit a claim form, you will receive payment pursuant to the settlement agreement. In 7 other words, only California Settlement Class Members that properly and timely submit claim 8 forms can receive payment. 9 California Class Members who wish to submit a claim should review and then fully 10 complete, execute, and mail the form entitled “California Settlement Claim Certification Form” 11 attached to this Notice as Form B by no later than [Notice Response Deadline]. The submission 12 deadline is final, and claim forms that are not postmarked on or before that date will not be 13 honored. 14 California Class Members who do not opt out of the California Settlement Class may also 15 object to the terms or nature of the settlement at or prior to the hearing on the settlement using 16 the procedure set forth below. 17 C. How Do I Opt Out of The Settlement? 18 Current California Class Members may elect to “opt out” of the California Settlement 19 Class and thus exclude themselves from this action and the associated settlement and judgment. 20 California Class Members who opt out of this action will not receive any money from this 21 settlement and would remain free, subject to the statute of limitations and applicable statutory, 22 common law or other restrictions, to bring otherwise viable claims against Yelp for unpaid 23 wages and remedies relating to record-keeping and timing of wage payment requirements. 24 California Class Members who wish to exercise this option shall submit a written request as 25 more fully described below. 26 California Class Members who wish to opt out of this settlement must mail a timely 27 written request to the Claims Administrator at [CLAIMS ADMINISTRATOR ADDRESS]. 28 The opt out request must state the Class Member’s full name, address, date of birth, and 16620979.2 -8- NOTICE TO CLASS ACTION MEMBERS – Case No. 11-CV-01503 EMC 1 the dates of employment by Yelp. If a written request to opt out is not received by the Claims 2 Administrator from a California Class Member postmarked on or before [Notice Response 3 Deadline] then that California Class Member will be deemed to have forever waived his or her 4 right to opt out of the California Settlement. 5 The submission deadline is final, and opt out requests that are not postmarked on or 6 before that date will not be honored. California Class Members who opt out of this lawsuit and 7 the associated settlement forfeit their right to submit a claim for payment under the specific 8 settlement described herein. 9 10 D. How Do I Object to The Settlement? If you do not like any terms of the Settlement, you can submit a written objection. Your 11 objection must be in writing and include your full name, address, telephone number, signature 12 and a statement that you object to the Settlement in Larkin v. Yelp! Inc., C.A. No. 11-01503 13 EMC and the reason(s) for your objection. The objection should be mailed to Peter Rukin at 14 Rukin Hyland Doria & Tindall LLP, 100 Pine Street, Suite 2150, San Francisco, CA 94111, and 15 postmarked no later than [Notice Response Deadline]. 16 Even if you object, you also may complete and submit the enclosed Claim Form. If you 17 object but do not submit the Claim Form and the Court overrules your objection, then you would 18 not receive a Settlement payment. If you opt-out of the Settlement, you may not submit an 19 objection. 20 An objection to Class Counsel’s application for attorneys’ fees and costs may be filed, 21 and must be postmarked, no later than ten days following the filing of Class Counsel’s motion 22 for an award of attorneys’ fees and costs. 23 VI. RELEASE OF CLAIMS 24 All Members of the California Class who do not opt out of the settlement shall be subject 25 to the judgment connected with this action and associated settlement. This means they shall be 26 deemed to have forever released and discharged Yelp and all its past and present affiliates, 27 directors, officers, employees, partners, members, principals, agents, insurers, co-insurers, re- 28 insurers, shareholders, attorneys, and personal or legal Representatives from any demands, 16620979.2 -9- NOTICE TO CLASS ACTION MEMBERS – Case No. 11-CV-01503 EMC 1 rights, liabilities, and causes of action of every nature and description whatsoever, including 2 without limitation statutory, constitutional, contractual or common law claims, whether known or 3 unknown, whether or not concealed or hidden, whether arising under federal or state law, against 4 Yelp, its affiliates, employees, agents, or any of them, including without limitation claims for 5 wages, damages, unpaid costs, penalties, liquidated damages, punitive damages, interest, 6 attorney fees, litigation costs, restitution, or equitable relief, that accrued through December 31, 7 2011 as a result of the California Class Member’s employment as an Account Executive in 8 California for Yelp, based on the following categories of claims or allegations: (a) any and all 9 claims for (i) failure to pay wages for work performed in excess of eight hours in a day or forty 10 hours in a week, regular; and/or (ii) failure to pay regular, overtime or other premium wages, 11 failure to pay minimum wages, failure to provide sufficient meal and/or rest periods and/or to 12 pay premiums in lieu thereof, failure to comply with payroll or wage record-keeping or 13 itemization requirements, and failure to timely pay wages due at termination or otherwise; (b) 14 any and all claims alleging statutory violations arising from the same categories of allegations set 15 forth above in (a), including without limitation claims under the Fair Labor Standards Act 16 (“FLSA”), the Portal to Portal Act, California Labor Code sections 218, 226, 226.7 and 1194 and 17 California Business & Professions Code sections 17200 et seq.; (c) any and all claims for 18 penalties or liquidated damages or other available remedies arising from the categories of 19 allegations set forth above in (a) and (b), including without limitation claims under the FLSA, 20 Portal to Portal Act, California Labor Code sections 203, 226, 226.7, 512, 1194, and 2698 et 21 seq., and applicable California Industrial Welfare Commission Wage Orders; and (d) any and all 22 claims for interest, costs, or attorney fees arising from the categories of allegations set forth 23 above in (a) and (b), including without limitation claims under the California Labor Code 24 sections 218.5, 1194, and 2699(g)(1), California Code of Civil Procedure section 1021.5, and 25 Federal Rule of Civil Procedure 23(h); and (e) to the extent not covered by the above, any and all 26 claims pled in the Litigation. (The Released Claims include claims under the California Private 27 Attorney Generals Act of 2004, codified at California Labor Code sections 2698 et seq., for 28 which the California Class was granted additional consideration, which is already part of, and not 16620979.2 - 10 - NOTICE TO CLASS ACTION MEMBERS – Case No. 11-CV-01503 EMC 1 in addition to, the Maximum Settlement Amount, in the amount of $7,500, which shall be paid to 2 the California Labor and Workforce Development Agency pursuant to this settlement.) 3 If you submit a claim or do nothing, , i.e., do not opt out of the settlement, you shall be 4 deemed to have, and by operation of the judgment shall have, expressly waived, as it pertains to 5 Released Claims, the rights and benefits of California Civil Code § 1542, which provides: 6 7 8 A general release does not extend to claims which the creditor does not know or suspect to exist in his or her favor at the time of executing the release, which if known by him or her must have materially affected his or her settlement with the debtor. 9 VII. HEARING ON SETTLEMENT 10 Following a hearing on or about [INSERT DATE], pursuant to the procedures for the 11 approval of class actions and Rule 23 of the Federal Rules of Civil Procedure and the procedures 12 for collective actions under the FLSA, the Court granted preliminary approval for the settlement 13 of this matter as a class and collective action and scheduled a hearing on final approval for 14 [INSERT DATE]. This hearing will take place before the Honorable Edward M. Chen in 15 Courtroom 5 of the United States District Courthouse for the Northern District of California, 450 16 Golden Gate Avenue, 17th Floor, San Francisco, California 94102. Members of the California 17 Class can express their views on the settlement at or before this hearing but you are not required 18 to do so, nor are you required to attend this hearing to exercise any of your rights. California 19 Class Members can exercise either their right to obtain payment or opt out by following the 20 instructions contained in this Notice; again, no appearance at the hearing is required. 21 At this hearing, Class Counsel will present any timely written objections to the Court. 22 Late written objections will not be valid. 23 Again, attendance at this hearing is completely optional; attendance at the hearing is 24 not required to participate in the settlement or to opt out of the lawsuit. 25 VIII. EXAMINATION OF PAPERS FILED IN THIS ACTION 26 This Notice does not fully describe the action. Members of the public, including but not 27 limited to those whose rights may be affected by this action, may inspect the files (including the 28 16620979.2 - 11 - NOTICE TO CLASS ACTION MEMBERS – Case No. 11-CV-01503 EMC 1 full settlement agreement) through the Court Clerk at the following address: Office of the Clerk, 2 United States District Court for the Northern District of California, 450 Golden Gate Avenue, 3 17th Floor, San Francisco, California 94102. 4 5 PLEASE DO NOT CALL OR WRITE THE COURT OR YELP WITH QUESTIONS REGARDING 6 THIS ACTION. 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 16620979.2 - 12 - NOTICE TO CLASS ACTION MEMBERS – Case No. 11-CV-01503 EMC 1 FORM A 2 3 FOR 4 5 NOTICE TO CLASS MEMBERS RE: PENDENCY OF A CLASS ACTION AND NOTICE 6 OF HEARING ON PROPOSED SETTLEMENT 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 16620979.2 - 13 - NOTICE TO CLASS ACTION MEMBERS – Case No. 11-CV-01503 EMC 1 Change of Name and/or Address Information 2 3 Pursuant to Section VI to the Notice to Class Members, I wish to change my name and/or mailing address information to the following: 4 Name: 5 Street and Apt. No., if any: 6 City, State and Zip Code: 7 For purposes of verification only, I began working at Yelp in 8 ____________________, _______. 9 (Month) 10 (Year) I understand that all future correspondence in this action, including but not 11 necessarily limited to important notices or payments to which I am entitled (if any), will be sent 12 to the address listed above and not to the address previously used. I hereby request and consent to 13 the use of the address listed above for these purposes. 14 DATED: ___________ ___, 2012 Submitted By: 15 _________________________________ 16 Print Name 17 _________________________________ 18 Signature 19 _________________________________ 20 Date 21 PLEASE RETURN THIS FORM VIA UNITED STATES MAIL TO: 22 Simpluris, Inc. 23 Re: Larkin Matter 24 ADDRESS 25 THIS FORM MUST BE POSTMARKED BY [NOTICE RESPONSE DEADLINE], 26 TO CHANGE YOUR ADDRESS 27 28 16620979.2 - 14 - NOTICE TO CLASS ACTION MEMBERS – Case No. 11-CV-01503 EMC 1 FORM B 2 3 FOR 4 5 NOTICE TO CLASS MEMBERS RE: PENDENCY OF A CLASS ACTION AND NOTICE 6 OF HEARING ON PROPOSED SETTLEMENT 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 16620979.2 - 15 - NOTICE TO CLASS ACTION MEMBERS – Case No. 11-CV-01503 EMC 1 California Settlement Claim Certification Form 2 I hereby submit this claim for payment under the settlement: 3 I confirm that I was employed by Yelp in California at some point between March 4 29, 2007 and December 31, 2011 as an Account Executive (which includes, without limitation, 5 positions with the titles Account Executive, Account Executive Trainee, Associate Account 6 Executive Trainee, Associate Account Executive, Junior Account Executive, Sales Associate, 7 Sales Representative, and Senior Account Executive). 8 9 I understand that by submitting this claim certification form, I am making a claim for a settlement payment to be paid by Yelp in connection with contested litigation in which the 10 plaintiffs are alleging among other things that they and others, including me, earned and are 11 entitled to such compensation because we allegedly worked overtime but did not receive premium 12 pay for it. By submitting this claim form, I also acknowledge that I am consenting to opt in and 13 opting into this action and settlement pursuant to the federal Fair Labor Standards Act and 29 14 U.S.C. § 216(b). 15 not electing to opt out of this settlement, I will be subject to the judgment, waive the protections 16 of California Civil Code section 15421 as set forth in the Notice, and be precluded from pursuing 17 all of the claims, known or unknown, described in the Notice. Submission of this claim form will 18 have no effect on my employment. Yelp has agreed, and pertinent law requires, that Yelp not 19 take any adverse action against you because you file (or do not file) a claim. By submitting this claim form, I further acknowledge that I understand that by 20 21 Name of Class Member (print): 22 Address: 23 City, State and Zip Code: 24 ____ 25 Date: ____________________________ PLEASE CHECK THIS BOX IF THIS IS A NEW ADDRESS 26 27 28 1 California Civil Code section 1542 provides that “[a] general release does not extend to claims which the creditor does not know or suspect to exist in his or her favor at the time of executing the release, which if known by him or her must have materially affected his or her settlement with the debtor.” 16620979.2 - 16 - NOTICE TO CLASS ACTION MEMBERS – Case No. 11-CV-01503 EMC 1 Signature: _________________________ 2 3 For verification purposes, please state the month and year you began working at Yelp: 4 ________ Month _________ Year 5 PLEASE RETURN THIS FORM VIA UNITED STATES MAIL TO: 6 Simpluris, Inc. 7 Re: Larkin Matter 8 ADDRESS 9 10 11 THIS FORM MUST BE POSTMARKED BY [NOTICE RESPONSE DEADLINE] TO BE VALID AND EFFECTIVE. 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 16620979.2 - 17 - NOTICE TO CLASS ACTION MEMBERS – Case No. 11-CV-01503 EMC EXHIBIT 3 16620979.2 1 2 3 4 5 6 7 8 UNITED STATES DISTRICT COURT 9 NORTHERN DISTRICT OF CALIFORNIA 10 11 12 JUSTIN LARKIN, ANTHONY TIJERINO, and AHMAD DEANES, on behalf of themselves and all others similarly situated, Plaintiffs, 13 14 15 v. YELP! INC., Defendant. CASE NO. 11-CV-01503 EMC [PROPOSED] NOTICE TO COLLECTIVE ACTION CLASS MEMBERS RE: PENDENCY OF A COLLECTIVE ACTION AND NOTICE OF HEARING ON PROPOSED SETTLEMENT [THE NATIONAL NOTICE] 16 17 18 19 20 21 22 23 24 25 26 27 28 16620979.2 NOTICE TO CLASS ACTION MEMBERS – Case No. 11-CV-01503 EMC 1 2 3 4 5 6 7 8 NOTICE OF PENDING COLLECTIVE ACTION, ASSOCIATED SETTLEMENT AND FINAL APPROVAL HEARING -- PLEASE READ THIS NOTICE CAREFULLY AS YOUR LEGAL RIGHTS MAY BE AFFECTED IF YOU WERE EMPLOYED BY YELP! INC. (“YELP”) AS AN ACCOUNT EXECUTIVE (INCLUDING POSITIONS INCORPORATING THE TITLES ACCOUNT EXECUTIVE, ACCOUNT EXECUTIVE TRAINEE, ASSOCIATE ACCOUNT EXECUTIVE TRAINEE, ASSOCIATE ACCOUNT EXECUTIVE, JUNIOR ACCOUNT EXECUTIVE, SALES ASSOCIATE, SALES REPRESENTATIVE, AND SENIOR ACCOUNT EXECUTIVE) IN THE UNITED STATES OUTSIDE THE STATE OF CALIFORNIA BETWEEN May 11, 2008 AND DECEMBER 31, 2011 (THE “NATIONAL CLASS”), THIS COLLECTIVE ACTION SETTLEMENT MAY AFFECT YOUR RIGHTS AND YOU MAY BE ENTITLED TO PARTICIPATE IN A SETTLEMENT. PLEASE READ THIS NOTICE CAREFULLY. PLEASE DO NOT CONTACT THE COURT OR YELP REGARDING THIS MATTER. 9 10 11 12 THIS IS A COURT-APPROVED NOTICE. THIS IS NOT A SOLICITATION FROM A LAWYER. YOU HAVE NOT BEEN SUED. THE FOLLOWING RECITATION DOES NOT CONSTITUTE THE FINDINGS OF THE COURT. IT SHOULD NOT BE UNDERSTOOD TO BE AN EXPRESSION OF THE COURT’S VIEWS ON THE MERITS OF ANY CLAIM OR DEFENSE RAISED BY THE PARTIES. 13 I. 14 15 INTRODUCTION AND SUMMARY This is to notify you of a lawsuit against Yelp! Inc. (“Yelp”) and the proposed class action 16 settlement of that lawsuit. The lawsuit, entitled Larkin v. Yelp! Inc., Case No. 11-CV-01503 17 EMC, United States District Court for the Northern District of California, concerns the 18 compensation of Account Executives (including all of the positions listed above). You have 19 received this Notice because Yelp’s records suggest that you may be one of the current or former 20 Account Executives employed by Yelp in the United States outside of the state of California 21 during the pertinent period. This Notice provides instructions on the options available to you – in 22 particular, it will explain your options: 23 24 25 You Can Submit An Opt In and Claim Form and Receive a Settlement Payment To claim your settlement payment, you must complete and submit the enclosed claim form by [BY NOTICE RESPONSE DATE]. Your settlement share will be at least $[MERGE SETTLEMENT AMOUNT]. 26 27 28 16620979.2 -1- NOTICE TO CLASS ACTION MEMBERS – Case No. 11-CV-01503 EMC 1 You Can Object to the terms of the Settlement As discussed below, if you wish to object to any part of the Settlement, you may explain why you do not like the Settlement, provided you do so by [NOTICE RESPONSE DATE]. You Can Do Nothing and You Will Not Release Your Claims If you do nothing, you will not receive any of the benefits of the settlement nor be bound by the judgment or release of claims. 2 3 4 5 6 7 Please understand that this is not a notice of a lawsuit against you. You have not been 8 sued. 9 II. WHAT IS THIS LITIGATION ABOUT? 10 Plaintiffs Justin Larkin, Anthony Tijerino and Ahmad Deanes (collectively “Plaintiffs”) 11 filed this class and collective action against Yelp. The lawsuit alleges, among other things, that 12 Yelp violated certain state and federal employment laws, including the federal Fair Labor 13 Standards Act (“FLSA”), the California Labor Code, the California Industrial Welfare 14 Commission Wage Orders, and the California Business and Professions Code, in connection with 15 the compensation of Account Executives, (including, without limitation, positions with the titles 16 Account Executive, Account Executive Trainee, Associate Account Executive Trainee, 17 Associate Account Executive, Junior Account Executive, Sales Associate, Sales Representative, 18 and Senior Account Executive). 19 The lawsuit alleges that Yelp misclassified Account Executives as “exempt” employees, 20 i.e., employees who under state and federal laws are exempt from overtime wage requirements, 21 meal and rest period requirements, and other California and federal employment law 22 requirements. The lawsuit also alleges that Yelp failed to comply with various other California 23 employment laws and regulations relating to recordkeeping, wage deductions, and the timing of 24 wage payments. The lawsuit is collectively brought on behalf of all current and former Account 25 Executives employed by Yelp in the United States of America (including without limitation the 26 District of Columbia) in locations other than California at any point between May 11, 2008 and 27 December 31, 2011, and all people in this group are referred to as the “National Class.” 28 16620979.2 -2- NOTICE TO CLASS ACTION MEMBERS – Case No. 11-CV-01503 EMC 1 Yelp has reviewed the claims in this lawsuit in detail, has denied any wrongdoing or 2 liability in this matter. Yelp is committed to compensating its employees lawfully. Although 3 Yelp believes that it has ample legal and factual grounds for defending and defeating the claims 4 at hand, it has chosen to work with Plaintiffs and their counsel to resolve this matter in order to 5 avoid the further expense and burden of litigation pursuant to the procedure set forth in this 6 Notice. 7 Yelp will not retaliate against any class members for exercising or not exercising the 8 rights described in this Notice, the aforementioned lawsuit, and/or settlement, and does not 9 encourage or discourage any specific type of response. Whether and how you respond to this 10 notice will have no effect on your employment at Yelp. 11 III. 12 13 DESCRIPTION OF THE SETTLEMENT A. Summary of Settlement On behalf of both a National and a California class, Plaintiffs Larkin and Tijerino have 14 reached a voluntary settlement agreement with Yelp. The total maximum amount of the 15 consolidated settlement is $1,250,000, with approximately one-third of that amount allocated to 16 the resolution of the claims of the National Settlement Class. 17 Through this settlement, neither Yelp nor its employees have admitted any liability or 18 wrongdoing. A full copy of the settlement agreement, which is entitled the Stipulation Re: 19 Settlement of Class and Collective Actions, as well as other public documents filed with regard 20 to this matter can be inspected in the Office of the Court Clerk (see below). This settlement has 21 been preliminary approved by the Court. 22 Only those individuals who opt-in by submitting a qualifying National Opt In and 23 Claim Form will remain Members of the National Class and will be eligible to participate in 24 this settlement and receive payment under this agreement, and only those individuals who 25 submit qualifying claim forms will receive payment. If you do not complete and timely 26 submit the National Opt In and Claim Form, you will not be included in the National Class. 27 If you do not opt in to the settlement, you will neither be eligible to receive any payment 28 pursuant to this settlement, nor be bound by the judgment and associated waiver or release 16620979.2 -3- NOTICE TO CLASS ACTION MEMBERS – Case No. 11-CV-01503 EMC 1 2 3 of related claims. B. What Will I get Under the Settlement If I file a Claim? Under the settlement, each National Class Member who submits an Opt In and Claim 4 Form will receive a minimum amount per each qualifying week worked between May 11, 2008 5 and December 31, 2011. Currently, your estimated settlement payment is at least $[MERGE] 6 because we estimate that you worked [MERGE] qualifying weeks during the period between 7 May 11, 2008 and December 31, 2011 in a state other than California, i.e., you worked that many 8 weeks in one of the covered positions during this time frame. 9 10 C. Is My Settlement Payment Taxed? A portion of any payment made to you under the settlement will be subject to required 11 wage withholdings and deductions, and as a result, the amount you receive will be less than the 12 gross amount listed above. Yelp will report thirty-three percent (33%) of this payment to 13 relevant government entities as a wage payment, and will report the remaining sixty-seven 14 percent (67%) as a non-wage payment. Yelp reserves the right to make any required 15 withholdings or deductions as required by applicable law, and National Class Members should 16 be advised that Yelp will report any payments made pursuant to this agreement to the Internal 17 Revenue Service and other relevant government entities (if any) as required by law. 18 Each National Class Member will be solely responsible for reporting any payment received 19 pursuant to this settlement and for paying any taxes associated with the same. Neither the Class 20 Representatives, Class Counsel, nor Yelp makes any representations concerning the tax 21 consequences of this settlement or your participation in it. If you have any questions about the 22 tax consequences of the payments you may receive under the settlement, you should consult your 23 tax advisor. 24 D. What if I think I worked More Workweeks? 25 If you believe the number of qualifying work weeks listed above in Section III.B is 26 inaccurate, please contact the Settlement Administrator or Class Counsel immediately and 27 provide them with any supporting documentation in support of your view. Remember, however, 28 that the only weeks that qualify are weeks in which you worked in one of the covered positions 16620979.2 -4- NOTICE TO CLASS ACTION MEMBERS – Case No. 11-CV-01503 EMC 1 during the pertinent time frame. So, for example, work in other positions does not count and 2 work performed in 2012 and beyond does not count. E. How Much Will Class Counsel Be Paid in Attorneys’ Fees? 3 Class Counsel will request that the Court award them attorneys’ fees up to 25% of the 4 5 maximum settlement amount that Yelp could pay, or $312,500. This request will be subject to 6 review and approval by the Court. Yelp has agreed not to oppose this request. Class Counsel 7 will also seek reimbursement of up to $10,000 in out-of-pocket expenses incurred in this case, 8 which will also be subject the Court’s approval. Any amounts approved by the Court will 9 constitute full payment for all legal fees of Class Counsel in the action, including any work they 10 do in the future in connection with the Settlement. In the event any amount of the requested fees 11 or costs are not approved by the Court, the unawarded amount will revert to the maximum 12 settlement payout to class members. 13 F. What Deductions Will Be Made From the Settlement Amount? 14 The settlement additionally provides that deductions from the Maximum Settlement 15 Amount will be made for (1) reimbursement of settlement administration expenses not to exceed 16 $25,000; (2) enhancement payments of $5,000 to each of the three Plaintiffs for a total of 17 $15,000; (3) payment of $7,500 to the California Labor and Workforce Development Agency. 18 These estimated payments are all subject to the approval of the Court. 19 IV. 20 THE PEOPLE RECEIVING THIS NOTICE The Class Representatives have brought this action as a class and collective action. In 21 class and collective actions, one or more persons bring claims on behalf of themselves and others 22 who purportedly are in similar situations or have similar claims. In other words, the Class 23 Representatives are seeking to represent those who are purportedly similarly situated and thus 24 may also have similar or related claims. In order to ensure that all National Class Members are 25 given an adequate opportunity to protect their rights, this Notice is being mailed to the last known 26 addresses of all National Class Members, and address verification measures have been taken. 27 V. 28 THE RIGHTS AND OPTIONS OF NATIONAL CLASS MEMBERS You have received this Notice because Yelp’s records suggest that you are currently a 16620979.2 -5- NOTICE TO CLASS ACTION MEMBERS – Case No. 11-CV-01503 EMC 1 member of the conditionally certified National Class. Specifically, these records suggest that you 2 were employed by Yelp as an Account Executive in the United States in a state outside of 3 California during the pertinent period. Current members of the National Class have several 4 options:  5 6  7 8  9 10 11 You may opt-in to participate in the settlement. To obtain a Settlement payment, you must complete and submit the enclosed Opt In and Claim Form as detailed below no later than _____________, 2012 (see below for more details). You may do nothing, which means you are not opting in to the settlement. By doing nothing, you will not become a part of the National Settlement Class and thereby exclude yourself from this action. You will not release your claims against Yelp or be bound by the judgment. You may object to the Settlement by submitting your written objections to Class Counsel as described below no later than _______, 2012. If you object to the Settlement, and the Court overrules your objection, you will only participate in the Settlement if you have also opted-in to the settlement by completing and submitting the enclosed Claim Form (see below for more details). A. How Do I Make Corrections to Name or Address? 12 If you wish to change the name or address listed on the envelope in which this 13 Notice was sent, please complete Form A attached hereto and submit it before the deadline 14 specified on the form. 15 B. How Do I submit a Claim Form? How Do I Participate in the Settlement? 16 National Class Members, including you, may participate as Members of the 17 National Settlement Class in the settlement by submitting a claim for payment. YOU MUST 18 SUBMIT AN OPT IN AND CLAIM FORM TO BE PAID. National Class Members who 19 choose this option and become members of the National Settlement Class will be represented by 20 the Class Representatives and Class Counsel. The law firms acting as Class Counsel in this 21 matter are the following: 22 PETER RUKIN RUKIN HYLAND DORIA & TINDALL LLP 100 Pine Street, Suite 2150 San Francisco, CA 94111 23 24 25 ROSA VIGIL-GALLENBERG GALLENBERG PC 9701 Wilshire Blvd. Suite 1000 Beverly Hills, CA 90212 Tel: (310) 295-1654 26 27 28 16620979.2 -6- NOTICE TO CLASS ACTION MEMBERS – Case No. 11-CV-01503 EMC 1 3 IAN MCLOUGHLIN TOM URMY SHAPIRO HABER & URMY LLP 53 State Street, 13th Floor Boston, MA 02109 4 Alternatively, National Class Members who opt in to the National Settlement 5 Class may participate in this action at their own expense and may retain their own attorneys. 6 National Class Members who choose this option will be responsible for any attorney fees or costs 7 incurred as a result of this election. 2 If you choose to become a member of the National Settlement Class and properly 8 9 and timely submitting a claim form, you will receive payment pursuant to the settlement 10 agreement. In other words, only National Settlement Class Members that properly and timely 11 submit claim forms can receive payment. National Class Members who wish to submit a claim should review and then fully 12 13 complete, execute, and mail the form entitled “National Opt In and Settlement Claim Certification 14 Form” attached to this Notice as Form B by no later than [Notice Response Deadline]. The 15 submission deadline is final, and claim forms that are not postmarked on or before that date will 16 not be honored. National Class Members who opt in to the National Settlement Class may also 17 18 object to the terms or nature of the settlement at or prior to the hearing on the settlement using the 19 procedure set forth below. 20 C. How Do I Not Participate in The Settlement? National Class Members may elect to not participate in the National Settlement 21 22 Class and thus exclude themselves from this action and the associated settlement and judgment. 23 National Class Members who do not opt in to this action will not receive any money from 24 this settlement and would remain free, subject to the statute of limitations and applicable 25 statutory, common law or other restrictions, to bring otherwise viable claims against Yelp for 26 unpaid wages and remedies relating to record-keeping and timing of wage payment requirements. 27 D. How Do I Object to The Settlement? If you do not like any terms of the Settlement, you can submit a written objection. 28 16620979.2 -7- NOTICE TO CLASS ACTION MEMBERS – Case No. 11-CV-01503 EMC 1 Your objection must be in writing and include your full name, address, telephone number, 2 signature and a statement that you object to the Settlement in Larkin v. Yelp! Inc., C.A. No. 11- 3 01503 EMC and the reason(s) for your objection. The objection should be mailed to Peter Rukin 4 at Rukin Hyland Doria & Tindall LLP, 100 Pine Street, Suite 2150, San Francisco, CA 94111, 5 and postmarked no later than [Notice Response Deadline]. 6 Even if you object, you also may complete and submit the enclosed Claim Form. 7 If you object but do not submit the Claim Form and the Court overrules your objection, then you 8 would not receive a Settlement payment. An objection to Class Counsel’s application for attorneys’ fees and costs may be 9 10 filed, and must be postmarked, no later than ten days following the filing of Class Counsel’s 11 motion for an award of attorneys’ fees and costs. 12 VI. RELEASE OF CLAIMS 13 All Members of the National Class who opt in to the settlement shall be subject to 14 the judgment connected with this action and associated settlement. This means they shall be 15 deemed to have forever released and discharged Yelp and all its past and present affiliates, 16 directors, officers, employees, partners, members, principals, agents, insurers, co-insurers, re- 17 insurers, shareholders, attorneys, and personal or legal Representatives from any demands, rights, 18 liabilities, and causes of action of every nature and description whatsoever, including without 19 limitation statutory, constitutional, contractual or common law claims, whether known or 20 unknown, whether or not concealed or hidden, whether arising under federal or state law, against 21 Yelp, its affiliates, employees, agents, or any of them, including without limitation claims for 22 wages, damages, unpaid costs, penalties, liquidated damages, punitive damages, interest, attorney 23 fees, litigation costs, restitution, or equitable relief, that accrued through December 31, 2011 as a 24 result of the National Class Member’s employment as an Account Executive in any state other 25 than California for Yelp, based on the following categories of claims or allegations: (a) any and 26 all claims for (i) failure to pay wages for work performed in excess of eight hours in a day or 27 forty hours in a week, regular; and/or (ii) failure to pay regular or overtime wages, failure to pay 28 minimum wages, failure to comply with payroll or wage record-keeping or itemization 16620979.2 -8- NOTICE TO CLASS ACTION MEMBERS – Case No. 11-CV-01503 EMC 1 requirements; (b) any and all claims alleging statutory violations arising from the same categories 2 of allegations set forth above in (a), including without limitation claims under the Fair Labor 3 Standards Act (“FLSA”), the Portal to Portal Act, and pertinent state laws; (c) any and all claims 4 for penalties or liquidated damages or other available remedies arising from the categories of 5 allegations set forth above in (a) and (b; and (d) any and all claims for interest, costs, or attorney 6 fees arising from the categories of allegations set forth above in (a) and (b) and (e) to the extent 7 not covered by the above, any and all claims pled in the Litigation. 8 VII. HEARING ON SETTLEMENT 9 Following a hearing on or about [INSERT DATE], pursuant to the procedures for 10 the approval of class actions and Rule 23 of the Federal Rules of Civil Procedure and the 11 procedures for collective actions under the FLSA, the Court granted preliminary approval for the 12 settlement of this matter as a class and collective action and scheduled a hearing on final approval 13 for [INSERT DATE]. This hearing will take place before the Honorable Edward M. Chen in 14 Courtroom 5 of the United States District Courthouse for the Northern District of California, 450 15 Golden Gate Avenue, 17th Floor, San Francisco, California 94102. Members of the National 16 Class can express their views on the settlement at or before this hearing but you are not required 17 to do so, nor are you required to attend this hearing to exercise any of your rights. National Class 18 Members can exercise either their right to obtain payment or choose not to opt in; again, no 19 appearance at the hearing is required. 20 21 At this hearing, Class Counsel will present any timely written objections to the Court. Late written objections will not be valid. 22 Again, attendance at this hearing is completely optional; attendance at the 23 hearing is not required to participate in the settlement or to opt out of the lawsuit. 24 VIII. EXAMINATION OF PAPERS FILED IN THIS ACTION 25 This Notice does not fully describe the action. Members of the public, including 26 but not limited to those whose rights may be affected by this action, may inspect the files 27 (including the full settlement agreement) through the Court Clerk at the following address: 28 Office of the Clerk, United States District Court for the Northern District of California, 450 16620979.2 -9- NOTICE TO CLASS ACTION MEMBERS – Case No. 11-CV-01503 EMC 1 Golden Gate Avenue, 17th Floor, San Francisco, California 94102. 2 3 4 5 PLEASE DO NOT CALL OR WRITE THE COURT OR YELP WITH QUESTIONS REGARDING THIS ACTION. 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 16620979.2 - 10 - NOTICE TO CLASS ACTION MEMBERS – Case No. 11-CV-01503 EMC 1 FORM A 2 3 FOR 4 5 NOTICE TO COLLECTIVE ACTION CLASS MEMBERS RE: PENDENCY OF A 6 COLLECTIVE ACTION AND NOTICE 7 OF HEARING ON PROPOSED SETTLEMENT 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 16620979.2 - 11 - NOTICE TO CLASS ACTION MEMBERS – Case No. 11-CV-01503 EMC 1 Change of Name and/or Address Information 2 3 Pursuant to Section VI of the Notice to Collective Action Class Members, I wish to change my name and/or mailing address information to the following: 4 Name: 5 Street and Apt. No., if any: 6 City, State and Zip Code: 7 For purposes of verification only, I began working at Yelp in 8 ____________________, _______. 9 (Month) 10 (Year) I understand that all future correspondence in this action, including but not 11 necessarily limited to important notices or payments to which I am entitled (if any), will be sent 12 to the address listed above and not to the address previously used. I hereby request and consent to 13 the use of the address listed above for these purposes. 14 DATED: ___________ ___, 200__ Submitted By: 15 _________________________________ 16 Print Name 17 _________________________________ 18 Signature 19 _________________________________ 20 Date 21 PLEASE RETURN THIS FORM VIA UNITED STATES MAIL TO: 22 Simpluris, Inc. 23 Re: Larkin Matter 24 ADDRESS 25 THIS FORM MUST BE POSTMARKED BY [NOTICE RESPONSE DEADLINE], 26 TO CHANGE YOUR ADDRESS 27 28 16620979.2 - 12 - NOTICE TO CLASS ACTION MEMBERS – Case No. 11-CV-01503 EMC 1 FORM B 2 3 FOR 4 5 NOTICE TO COLLECTIVE ACTION CLASS MEMBERS RE: PENDENCY OF A 6 COLLECTIVE ACTION AND NOTICE 7 OF HEARING ON PROPOSED SETTLEMENT 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 16620979.2 - 13 - NOTICE TO CLASS ACTION MEMBERS – Case No. 11-CV-01503 EMC 1 National Opt In and Settlement Claim Certification Form 2 Pursuant to Section VII of the Notice, I hereby wish to opt in to this action 3 pursuant to the federal Fair Labor Standards Act, and I hereby answer the following questions 4 (designed to determine my eligibility for a settlement payment): 5 I confirm that I was employed by Yelp in the United States of America at a 6 location outside of California at some point between May 11, 2008 and December 31, 2011 as an 7 Account Executive (which includes positions with the titles Account Executive, Account 8 Executive Trainee, Associate Account Executive Trainee, Associate Account Executive, Junior 9 Account Executive, Sales Associate, Sales Representative, and Senior Account Executive). 10 I understand that by submitting this claim certification form, I am making a claim 11 for a settlement payment to be paid by Yelp in connection with contested litigation in which the 12 plaintiffs are alleging among other things that they and others, including me, earned and are 13 entitled to such compensation because we allegedly worked overtime but did not receive premium 14 pay for it. By submitting this form, I acknowledge that I am consenting to opt in and opting into 15 this action and settlement pursuant to the federal Fair Labor Standards Act and 29 U.S.C. § 16 216(b) and that I understand that by doing so, I will be subject to the judgment and be precluded 17 from pursuing all of the claims, known or unknown, described in the Notice. Checking the first 18 box above will preclude you from monetary recovery here. 19 Submission of this claim form will have no effect on my employment. Yelp has 20 agreed, and pertinent law requires, that Yelp not take any adverse action against you because you 21 file (or do not file) a claim. 22 23 I hereby declare under penalty of perjury under the laws of the United States of America that the foregoing is true and accurate to the best of my knowledge. 24 Name of Class Member (print): 25 Address: 26 City, State and Zip Code: 27 ____ 28 Date: ____________________________ 16620979.2 PLEASE CHECK THIS BOX IF THIS IS A NEW ADDRESS - 14 - NOTICE TO CLASS ACTION MEMBERS – Case No. 11-CV-01503 EMC 1 Signature: _________________________ 2 3 4 For verification purposes, please state the month and year you began working at Yelp: ________ _________ Month Year PLEASE RETURN THIS FORM VIA UNITED STATES MAIL TO: 5 Simpluris, Inc. 6 Re: Larkin Matter 7 ADDRESS 8 9 10 THIS FORM MUST BE POSTMARKED BY [NOTICE RESPONSE DEADLINE] TO BE VALID AND EFFECTIVE. 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 16620979.2 - 15 - NOTICE TO CLASS ACTION MEMBERS – Case No. 11-CV-01503 EMC

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