On July 8th, the Department of Justice’s Antitrust Division announced a new whistleblower reward program, in partnership with the Office of the Inspector General of the United States Postal Service (USPS OIG) and the United States Postal Service (USPS).

The Whistleblower Rewards Program offers a monetary incentive to whistleblowers who voluntarily provide information through the program to the Antitrust Division of the Department of Justice, with awards of up to 30% of the ultimate recovery when the recovery includes a criminal fine that exceeds $1 million.

The study “Wage Theft in the Fast Food Industry: Minimum Wage Violations in Los Angeles”, was released by the Workplace Justice Lab in February 2025. Using data from the Current Population Survey (CPS) managed by the National Bureau of Economic Research, the authors Daniel Galvin and Jake Barnes noted workers in the Los Angeles metropolitan area studies are facing significant increases in labor violations that alternative or comparable industries.

The authors estimated that wage theft is resulting in the loss of up to 16% of wages, an average of $3,500 per employee.

Schneider Wallace Cottrell Kim LLP is pleased to announce that the firm’s name is changing to Schneider Wallace Cottrell Kim LLP, in recognition of partner Jason H. Kim and his exceptional leadership in the firm’s Business Litigation and Competition practice group. The firm’s website will remain www.schneiderwallace.com.

Jason H. Kim is a nationally respected litigator whose work spans antitrust, consumer protection, civil rights, ERISA, and complex business litigation. Mr. Kim has led high-profile cases across the country, including antitrust actions on behalf of health insurers and governmental entities, landmark consumer class actions, and significant civil rights and ERISA matters. An attorney of more than twenty years and a graduate of both Harvard College and Harvard Law School, he has played a critical role in shaping the firm’s growth and enhancing its national reputation through his results-oriented advocacy.

California’s revamped Automatic Renewal Law (often called “CARL”, CA Business & Profession Code section 17600) takes effect July 1, 2025, bringing large changes to consumer protections for subscriptions, trials, and recurring payments.

CARL is California’s consumer law regulating automatic renewals and continuous service agreements, now expanded to include free trials that roll into paid subscriptions.

Schneider Wallace Cottrell Kim LLP has been appointed, along with DiCello Levitt LLP, as Interim Class Counsel to co-lead all putative class actions in California Superior Court in Los Angeles related to the Eaton Fire.  The Eaton Fire burned in Altadena, Los Angeles, in January 2025.  According to state authorities, the fire caused 17 deaths, 9 injuries, burned over 14,000 acres, and destroyed 9,000 structures.  Roughly 100,000 people were evacuated.  Plaintiffs allege that defendants Southern California Edison Company and Edison International failed to adequately maintain their power lines and electrical equipment, causing the Eaton Fire.  With the Court’s appointment, Schneider Wallace and DiCello Levitt are responsible for the orderly prosecution of all putative class actions seeking redress for damages arising from the Eaton Fire.  

In April 2025, the U.S. Department of Justice (DOJ) achieved its first successful criminal conviction for wage-fixing. A home healthcare executive was found guilty of conspiring to place a cap on wages for nurses in Las Vegas, between 2016 and 2019. A wage-fixing agreement, along with no-poach agreements and illegal variations of non-compete agreements, are types of illegal restraint on worker income and movement.

The Federal Labor Standards Act (FLSA), originally passed in 1938 and frequently updated since, defines a tipped employee as one who earns $30 a month or more in tips. For workers without state, county or city laws restricting the practice, workers under FLSA can receive a reduction in hourly pay that is covered by tips received.  Improper use of tip credit for employees is a common wage and hour dispute, and lawsuits are common when employers improperly use tip credits to reduce wages.  Here, we explore the latest rules from the Department of Labor, and common errors employers make when attempting to reduce employee owed wages with these credits.  FLSA Tip Credit  FLSA establishes the rules for how employers may use a tip credit to meet the federal minimum wage requirement. The tip credit provision allows employers of tipped employees to count part of their employees’ tips toward satisfying their minimum wage obligation. Employers can claim a credit as long as the employee’s tips make up the difference to meet the federal minimum wage of $7.25 per hour.   Under this rule, employers may pay tipped employees a base wage of $2.13 per hour and claim a tip credit of up to $5.12 per hour to cover the remainder of the minimum wage requirement. If an employee’s total earnings (tips + hourly wage) do not meet the federal minimum wage, the employer is legally obligated to compensate for the shortfall. Employees cannot earn below the minimum wage, for all time work.  […]

Schneider Wallace Cottrell Kim LLP is pleased to announce the opening of its Washington, D.C. office.  Schneider Wallace Cottrell Kim is a nationwide plaintiffs’ law firm founded in 1993, with offices in Northern California, Southern California, Texas, and Puerto Rico.  The firm represents both individuals and institutional clients such as health insurers and municipalities in complex civil litigation.  Schneider Wallace handles cases throughout the country, with a nationwide reach.  The firm’s Washington, D.C. office will further support our clients and cases in the nation’s capital and on the East Coast. 

April 21, 2025 — A California jury has awarded $2.36 million to a class of consumers in a false advertising lawsuit against Bigelow Tea, finding that the company misled buyers by labeling its products “Manufactured in the USA 100%” despite using imported ingredients and packaging.

ATTENTION: If you are a person with a mobility disability who uses a wheelchair, scooter, or other aid for mobility, and you use or would like to use the parks and recreation facilities operated by the City of Los Angeles, please read the following about a class action lawsuit that may affect your rights.