What kind of claim is the Torrez case against Del Taco?
Del_Taco Franchise · 2025 FDDAnswer from 2025 FDD Document
itional $9.3 million. These amounts are included within "Accrued liabilities" on our consolidated balance sheet as of September 29, 2024. The Company will continue to accrue for post-judgment interest until the matter is resolved.
Torrez — In March 2014, a former Del Taco employee filed a purported Private Attorneys General Act claim and class action alleging various causes of action under California's labor, wage, and hour laws. The plaintiff generally alleges Del Taco did not appropriately provide meal and rest breaks and failed to pay wages and reimburse business expenses to its California non-exempt employees. On November 12, 2021, the court granted, in part, the plaintiff's motion for class certification. The parties participated in a voluntary mediation on May 24, 2022 and June 3, 2022. On June 4, 2022, we entered into a Settlement Memorandum of Understanding (the "Agreement") which obligates the Company to pay a gross settlement amount of $50.0 million, for which in exchange we will be released from all claims by the parties. On August 8, 2023, the court issued its final approval of
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 58)
What This Means (2025 FDD)
According to Del Taco's 2025 Franchise Disclosure Document, the Torrez case was a Private Attorneys General Act claim and class action filed in March 2014 by a former Del Taco employee. The lawsuit alleged violations of California's labor, wage, and hour laws. Specifically, the plaintiff claimed that Del Taco did not appropriately provide meal and rest breaks, failed to pay wages, and did not reimburse business expenses to its California non-exempt employees.
The court granted partial class certification on November 12, 2021. Del Taco participated in voluntary mediation on May 24, 2022, and June 3, 2022, eventually reaching a settlement agreement on June 4, 2022. The agreement required Del Taco to pay a gross settlement amount of $50.0 million in exchange for a release from all claims by the parties. The court granted final approval of the settlement on August 8, 2023, and final judgment was entered on August 9, 2023. Del Taco made the full payments for the settlement amounts.
As of September 29, 2024, Del Taco has no further amounts accrued on its consolidated balance sheet related to this case. This indicates that the financial obligations related to the settlement have been fully satisfied. For a prospective franchisee, this information provides insight into the types of legal challenges Del Taco has faced in the past and the potential costs associated with labor law compliance.