Ninth Circuit Narrowly Upholds Class Settlement In Misclassification Case

We've commented several times recently on the increasing scrutiny courts are giving to class action settlements generally, and to attorney fee awards in particular.  A recent decision from the Ninth Circuit, although it ultimately upholds the award, reflects that this is still a troublesome area and less than entirely predictable for any of the parties.

In Laguna v. Coverall North America, Inc., Case No. 12-55479 (9^th Cir. June 3, 2014), the defendant ran a janitorial franchising company.  The persons performing the actual janitorial work did so under franchise agreements and were classified as "franchisees," not employees.  Once source of discontent appeared to stem from the manner in which customers were assigned to current franchisees.   The plaintiffs brought suit under California law contending that they were employees, not independent contractors, and also asserted various breaches of the franchise agreements.  The case was litigated for two years, and