Earthgrains California IBP Settlement: Who Gets Paid Automatically

Who is included in the class and who may receive a PAGA payment?

• Class Members are current or former Independent Business Partners (IBPs) with the California-related contracting, purchasing, or customer-sales connection described in the notice during June 27, 2018 through February 28, 2026.
• PAGA Members are a narrower group: people who contracted with Earthgrains Distribution LLC or a listed related entity between May 18, 2021 and February 28, 2026. PAGA is California’s Private Attorneys General Act, which permits civil-penalty claims.
• A person can be both a Class Member and a PAGA Member, but not every Class Member is a PAGA Member.

How is the class payment calculated?

• The class payment comes from the Net Settlement Amount, which is what remains from the gross fund after the listed deductions and Court-approved amounts.
• Fifteen percent of the Net Settlement Amount is split equally among all participating Class Members.
• The other 85 percent is divided based on each participating person’s Eligible Workweeks during the class period. More Eligible Workweeks results in a larger share of that portion.
• The amount printed in an individual notice is an approximate estimate, not a promised final amount.

How does the separate PAGA payment work?

• The total PAGA Payment is $350,000. Of that amount, $262,500 goes to the California Labor and Workforce Development Agency (LWDA).
• The remaining $87,500 is divided among PAGA Members according to each person’s Eligible Pay Periods during May 18, 2021 through February 28, 2026.
• This payment is separate from the class payment. A PAGA Member who does not opt out of the class settlement may receive both payments.

What do former and current IBPs need to do to receive payment?

• Former IBPs as of February 28, 2026 do not need to file a claim form. If they do not opt out, their class payment is sent automatically after final approval. A PAGA payment is also automatic for those who qualify as PAGA Members.
• Current IBPs as of February 28, 2026 must execute the Arbitration Agreement to receive the class payment. This is not a claim form.
• The notice sets this deadline as 45 calendar days after the Settlement Administrator mails the notice. It does not provide the mailing date or a specific calendar deadline.
• A current IBP who does not timely execute the agreement does not receive the class payment; the notice says that money will go to a charity selected by Defendants. A qualifying PAGA payment is still sent.

What if my notice lists the wrong workweeks or pay periods?

• Send a letter to the Settlement Administrator stating the Eligible Workweeks or Eligible Pay Periods you believe are correct.
• The letter must be postmarked by September 28, 2026.
• Include documents or other information supporting the different number. The notice does not specify a fixed list of required documents.

What happens if I opt out of the class settlement?

• Leaving the class settlement means you will not receive the Individual Settlement Payment and will not be bound by the class claims release.
• To opt out, mail a signed and dated letter with the case name and number, your name and address, the last four digits of your Social Security number, and a clear request to be excluded.
• The letter must be postmarked by September 28, 2026.
• You cannot leave the PAGA portion. If you qualify as a PAGA Member, you still receive the Individual PAGA Payment and remain bound by the PAGA release.

How long do I have to cash a settlement check, and could there be another payment?

• Cash the check promptly. A check not cashed within 180 days of issuance is sent to the California Unclaimed Property Fund in the recipient’s name.
• If a check is lost or misplaced, contact the Settlement Administrator immediately to request a replacement.
• The notice also describes a possible second distribution from money left in the Reserve Fund after the 180-day check-cashing period, but only if more than $5,000 remains. It does not clearly explain whether people who opted out of the class settlement could receive that distribution.

Has the settlement been finally approved, and when is the hearing?

• The Court has preliminarily approved the proposed settlement, but has not yet finally approved it.
• The Final Approval Hearing is scheduled for November 12, 2026 at 10:00 a.m. in Courtroom 4A of the Edward J. Schwartz United States Courthouse in San Diego.
• The Court may change the hearing date without further notice. A payment is not due unless final approval occurs.