Margie Bedolla v. Labor Ready Southwest, Inc.

We review the district court’s approval of a class action settlement, between day-laborers and Labor Ready Southwest, that was negotiated in the absence of a certified class. Appellants, objectors to the settlement, appeal the district court’s final approval of the settlement, as well as the district court’s denial of their motion to intervene. They raise contentions about whether the approved settlement is fair, reasonable and adequate. We have jurisdiction under 28 U.S.C. § 1291 . We affirm the denial of the motion to intervene. Our high procedural standard for review of class action settlements negotiated without a certified class leads us to vacate the order granting final approval to the settlement and the award of attorneys’ fees, and to remand to the district court for further proceedings.

I

Labor Ready Southwest (“Labor Ready”) is a temporary staffing agency, providing day laborers to businesses in need of labor help. The employees work for the businesses that require labor, but they remain employees of Labor Ready, which pays the employees, though not for time spent waiting for assignments at Labor Ready’s local offices, and not for time spent traveling from…