A $10.8 million Jackson Hewitt Class Action Settlement settles claims that the company pushed tax preparers to sign invalid non-compete agreements. A Fairness Hearing will be held by the Court on November 22, 2024, at 10 a.m.
Jackson Hewitt Class Action Settlement
The settlement benefits are for people who worked as tax preparers at a Jackson Hewitt site owned by the company from December 20, 2014, to July 3, 2024. Jackson Hewitt settlement payouts do not call for any claim form.
Tax preparation services are offered by Jackson Hewitt and its affiliate Tax Services of America Sept. 30, 2024, is the date for the exclusion and protest deadline. Nov. 22, 2024, is the last approval hearing set aside for the Jackson Hewitt Class Action Settlement.
Jackson Hewitt had its tax preparers sign illegal no-poach agreements and claims class action lawsuit plaintiffs. These agreements reportedly lowered pay and benefits to purposefully low levels and removed rivalry between Jackson Hewitt and its co-conspirators, like Tax Services of America.
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Jackson Hewitt Class Action Settlement Amount
The parties resolved the matter to save the expenses and hazards involved in running a lawsuit. Defendants specifically agreed to pay $10,800,000 overall to settle the accusations made against them. Jackson Hewitt and Tax Services of America agreed to pay $10.8 million to settle the wage and hour class action case without admitting wrongdoing.
Under the Jackson Hewitt settlement, class members will automatically receive a proportionate part of the net settlement fund depending on the hours they worked as tax preparation during the class period.
Senior executives, personnel in Jackson Hewitt’s executive, HR, and recruiting departments, persons outside of the United States, franchisee owners, and managers are excluded from the Settlement Class; defendants and their affiliates are also excluded.
Should you choose to exclude yourself and preserve your right to launch your litigation or object to the settlement, you must act by September 30, 2024, if you wish to be free from this settlement.
Jackson Hewitt Class Action Settlement Eligibility
If you were a tax preparer employed at any company-owned Jackson Hewitt facility in the United States at any point between December 20, 2014, and July 3, 2024, you are a member of the settlement class.
Maintaining your place in the Settlement Class does not need a claim. Doing nothing will keep you in the Settlement Class and discharge your antitrust claims against Defendants. Should the Settlement Fund Amount be approved, you will be paid from the Settlement Fund.
Allegations Against Jackson Hewitt Class Action Settlement
The main accusations directed against Jackson Hewitt focused on many important areas of interest:
- Class action plaintiffs claimed Jackson Hewitt misrepresented the cost of its tax preparation services, touting a reduced pricing structure while charging consumers concealed costs not legally revealed.
- Alleging an unlawful agreement among Jackson Hewitt firms not to seek or steal each other’s tax-preparing personnel, the tax preparers claimed These agreements curtailed workers’ authority to demand higher compensation, lowered their earnings, and restricted their freedom to relocate employment. Based on the facts generated in the case, the $10,800,000 settlement marks 100% of the damages estimated by the plaintiffs’ expert.
- Jackson Hewitt, a tax preparation company, in an antitrust class action. The case claims an unlawful agreement among Jackson Hewitt firms not to seek or poach each other’s personnel. These agreements curtailed workers’ authority to demand higher compensation, lowered their earnings, and restricted their freedom to transfer employment. The fact that these employees have a unique competence using the Jackson Hewitt model, which made defendants natural alternative employers throughout the sites, underlined the negative impact.
- Jackson Hewitt allegedly violated its fiduciary obligation to its clients by not working in their best interests, the complaint further claimed. Particularly about providing financial products with significant fees and interest rates, the plaintiffs claimed the corporation gave profits priority above the requirements of its customers.
Jackson Hewitt Class Action Settlement Benefit
The settlement advantages of Jackson Hewitt are designed to address the concerns raised in the class-action case, therefore restoring customer confidence and averting future complications. The plaintiffs allege that these agreements served and influenced:
- Adjusting, reducing, and maintaining the Class’s wages, benefits, and other compensation forms at intentionally low levels; and
- Significantly reducing labor-related competitiveness among the Defendants and their co-conspirators.
Alleged injuries experienced by Class members according to plaintiffs include:
- Less pay from Defendants than they would have gotten without the no-poach agreements and
- Less rivalry among Defendants and their affiliated companies for the workforce.
Ensuring improved customer experiences going forward depends critically on the company’s willingness to settle, reimburse consumers, and increase openness. Defendants claiming they behaved ethically. The parties resolved the matter to save the expenses and hazards involved in carrying on the lawsuit.