What does the plaintiff in the Torrez case generally allege 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, initiated in March 2014 by a former Del Taco employee, involves a Private Attorneys General Act claim and a class action. The plaintiff's allegations center around violations of California's labor, wage, and hour laws.
Specifically, the plaintiff in the Torrez case generally alleges that Del Taco did not appropriately provide meal and rest breaks to its California non-exempt employees. Additionally, the plaintiff alleges that Del Taco failed to pay wages and reimburse business expenses to these employees.
It is important to note that Del Taco entered into a Settlement Memorandum of Understanding on June 4, 2022, agreeing to pay a gross settlement amount of $50.0 million to resolve all claims. The court granted final approval of the settlement on August 8, 2023, and final judgment was entered on August 9, 2023. Del Taco has made full payments for the settlement amounts, and as of September 29, 2024, the company has no further amounts accrued on its consolidated balance sheet related to this case.