Legal Question in Employment Law in California

class action settlement

I was employed as a staff nurse 2-3 yrs ago by a hospital for 4-5 months. Apparently there was a class action suit filed against the company who owns the hospital for violations of CA labor code on missed lunch breaks, low wages etc. I got a disbursement check for $3,000 as part of the class action settlement. I was not aware or fully informed about this class action suit. Should I accept this check? I guess I really don't know how class action settlements work. There was a note w/ the check saying the tax forms are going to be mailed next yr so do I need to file this as part of my income if I cash the check? Thank you so much for your time. I'd appreciate any answer. Christina


Asked on 5/07/08, 7:16 pm

1 Answer from Attorneys
Michael Kirschbaum Law Offices of Michael R. Kirschbaum

Re: class action settlement

It would appear you were considered a member of the class that settled the case. If so, you should have received notices in the mail. Those notices would have spelled out the nature of the claim and how the damages for the class members was calculated. It also would have given you the opportunity to opt out if you did not wish to settle.

Now that you've gotten the check, it is considered taxable income, and you will probably receive either a W-2 or a 1099 tax form next year. You must show this to your tax adviser for advise on how to report the income.

If you need further information, you'll have to contact the lawfirm that represented the class.

Read more
Answered on 5/08/08, 4:25 pm


Related Questions & Answers

More Labor and Employment Law questions and answers in California