IN THE UNITED STATES DISTRICT COURT FOR ... - Cleveland.com

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not paying the Named Plaintiffs and other similarly-situated salaried and hourly employees for all hours worked on behalf of InkStop, Inc. (“InkStop” or “the Company”) in violation of FLSA, 29 U.S.C. §§ 201-219, and various state laws; and (2) misclassifying InkStop’s Store Managers, including Plaintiff Melanie Warren and other similarly-situated employees, as “exempt” employees, thus not paying them overtime compensation at the rate of one and one-half times their regular rate of pay for the hours they worked over 40 in a workweek in violation of the FLSA, 29 U.S.C. §§ 201-219 (“the Lawsuit”); and WHEREAS, Named Plaintiffs also filed a lawsuit against the Company and affiliated persons which, through their filing of their “First Amended Collective Action Complaint,” is now pending solely against Dirk Kettlewell and Dawn Callahan-Kettlewell, who are alleged to be “owners, directors and officers of InkStop, Inc.” titled Melanie Warren and Carol Laskoski vs. Dirk Kettlewell and Dawn Callahan-Kettlewell, Case No. 1:09-CV-2285 in the U.S. District Court for the Northern District of Ohio, Eastern Division, Judge Solomon Oliver, Jr. presiding (the “Related Lawsuit”). The Named Plaintiffs allege violations of the FLSA and various state laws for alleged non-payment of wages and misclassification of Store Managers — claims substantially similar to those in the Lawsuit; and WHEREAS, in addition to the Named Plaintiffs, 237 individuals have filed Consent Forms opting into the Lawsuit to date; WHEREAS, the individual members of the Board of Directors of InkStop — B. CHARLES AMES, RICHARD AMES, JOHN BULGARELLA, MICHAEL CLEGG, NORMAN ESIASON, DALE FULLER, WILLIAM HEINZERLING, JAMES HUMMER, DAWN CALLAHAN-KETTLEWELL, DIRK S. KETTLEWELL, NORBERT LEWANDOWSKI, JAMES MASTRIAN, MARK RACE, HARVEY SANDERS and 2
MICHAEL SHAUGHNESSY (“Directors”) — having learned of the alleged non-payment of wages to InkStop’s employees after September 13, 2009, have desired — well before the Lawsuit and the Related Lawsuit were filed — to compensate substantially these employees for their unpaid service to the Company, despite their belief that they have no legal obligation to do so; WHEREAS, as of the date of this Agreement, the Named Plaintiffs have incurred attorneys’ fees and incurred costs in the investigation and prosecution of the Lawsuit and the Related Lawsuit; WHEREAS, the Parties and Directors recognize that numerous bona fide disputes would need to be addressed were the Lawsuit and Related Lawsuit to continue including, without limitation, disputes concerning the liability of individuals under the FLSA in the circumstances existing here, the propriety of proceeding in the absence of InkStop which is in bankruptcy, numerous factual issues impacting the exempt status of the Store Managers and the good faith nature of Defendants’ actions, and that the resolution of the issues by the Court would have a substantial impact on the outcome of the Lawsuit and Related Lawsuit; WHEREAS, the Parties and the Directors desire to settle fully and finally all differences between them relating to InkStop’s compensation of Named Plaintiffs and all similarly-situated individuals, including, but not necessarily limited to, any differences embodied in or related to the Lawsuit and the Related Lawsuit; WHEREAS, the Parties and the Directors, with the assistance of the Wage & Hour office of the Department of Labor in Cleveland, Ohio, have identified the salaried and hourly employees employed by InkStop after September 13, 2009 who were allegedly not paid for some or all of their work after that date (except for the five InkStop officers who were members 3
Page 1: MELANIE WARREN and CAROL LASKOSKI,
Page 5 and 6: C. The term “Other Eligible Settl
Page 7 and 8: Participants who returned signed Co
Page 9 and 10: fees to Plaintiffs’ Counsel in an
Page 11 and 12: (2) Sixty days after the date of th
Page 13 and 14: (c) Participants who fall within bo
Page 15 and 16: similarly situated employees exists
Page 17 and 18: 12. Governing Law. This Agreement i
Page 23 and 24: LIST OF EXISTING OPT-IN PLAINTIFFS
Page 25 and 26: LIST OF EXISTING OPT-IN PLAINTIFFS
Page 27 and 28: LIST OF OTHER ELIGIBLE SETTLEMENT P
Page 35 and 36: LIST OF INKSTOP STORE MANAGERS NUMB
Page 41 and 42: SCHEDULE OF INDIVIDUAL PAYMENTS (Af
Page 51 and 52: IN THE UNITED STATES DISTRICT COURT
Page 53 and 54:
3. The Named Plaintiffs in the Laws
Page 55 and 56:
amount $166.72. Participants who fa
Page 57 and 58:
16. The Court approves the payment
Page 59 and 60:
NOTICE OF SETTLEMENT OF INKSTOP LAW
Page 61 and 62:
CONSENT TO OPT INTO LAWSUIT, RELEAS
Page 63 and 64:
1. The Court previously granted the
Page 65 and 66:
jbristol@crklaw.com THOMAS A. DOWNI
Page 67 and 68:
1. The Court previously granted the
Page 69:
tdownie@crklaw.com COHEN ROSENTHAL
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