Preview
1 BLUMENTHAL NORDREHAUG BHOWMIK DE BLOUW LLF"^ LiORSEB
Norman B. Blumenthal (State Bar #068687)
2 Kyle R. Nordrehaug (State Bar #205975) ^0:l8HAR2O PH 3:52
Aparajit Bhowmik (State Bar #248066) c .Dc^.nn -.
3 Piya Mukherjee (State Bar #274217) ^"^^^Bllk^mm^iifmtA-
CGO.STYGFSAeRAHfcNfr
Victoria B. R.ivapalacio (State Bar #275115)
4 2255 Calle Clara
La Jolla, CA 92037
5 Telephone: (858)551-1223
Facsimile: (858) 551-1232
6
Attomeys for Plaintiff
7
8
9
10
SUPERIOR COURT OF THE STATE OF CALIFORNIA
11
IN AND FOR THE COUNTY OF SACRAMENTO
12
13
14 ANDP^EA SPEARS an individual, on Case No. 34-2017-00210560-CU-OE-GDS
behalf of herself ana on behalf of all
15 persons similarly situated, CLASS ACTION
16 Plaintiff, DECLARATION OF E R I C R. LIETZOW
17
vs. Telephone Appearance
18
HEALTH NET OF CALIFORNIA, Hearing Date: April 16, 2018
19 INC., a Califomia Corporation; and Hearing Time: 9:00 a.m.
Does 1 through 50, Inclusive, Judge: Raymond M . Cadei
20 Dept.: 54
Defendants.
21 Action Filed: April 5, 2017
22
23
24
25
26
27
28
AMENDED NOTICE MOTION TO COMPEL FURTHER RESPONSES TO DISCOVERY
CASE No. 34-2017-00210560
Filed by Fax
1 DECLARATION OF ERIC R. LIETZOW
2 I , Eric R. Lietzow, declare as follows:
3 1. I am a Senior Manager at Desmond, Marcello & Amster (DM&A), a
4 valuation and litigation consulting firm. I am a Certified Public Accountant (CPA) and
5 have an undergraduate degree in business with an emphasis in accounting from
6 California State University, Long Beach. Attached hereto as Exhibit A is a true and
7 correct copy of my Curriculum Vitae which accurately and truthfully sets forth my
8 education, background and training. I make this declaration based on my personal
9 knowledge, and if called to testify, I could and would testify competently to the facts
10 stated in this declaration.
11 2. I have practiced in the valuation and litigation consulting profession since
12 1997 and have focused primarily on providing business valuation, economic damage,
13 and forensic accounting services to attorneys and their clients. Of particular relevance
14 to this matter is my substantial experience computing economic damages in connection
15 with class action litigation matters.
16 3. I was retained to consult on economic damages in connection with the
17 Andrea Spears, et al. v. Health Net of California, Inc. and Tomas R. Arana, et al. v.
18 HealthNet, Inc. matters (Consolidated Case No. 34-2017-00210560-CU-OE-GDS). I
19 was currently asked to analyze time and payroll data provided for Andrea Spears
20 ("Spears") and Tomas Arana ("Arana") and prepare a preliminary calculation of
21 unpaid bonus overtime premiums.
22 4. In connection with my analysis, I was provided with five Microsoft Excel
23 spreadsheet files. One file contained payroll information for Spears
24 (HNCA000I94.xls), one file contained time records for Spears (HNCA000195.xlsx),
25 two files contained payroll data for Arana (HNCA000196.xls and HNCA000197.xlsx),
26 and one file contained time records for Arana {HNCA000198.xlsx).
27 5. The payroll data for Spears included 253 unique records with check dates
28 between September 26, 2014 and September 30, 2016. The payroll data for Arana
DECLARATION OF ERIC R. LIETZOW
1 included 452 unique records with check dates between October 25, 2013 and August
2 26, 2016. Among other data, each record in the payroll data included a check date,
3 period start and end dates, an earnings code, and the related hours and dollar amount.
4 The payroll data included earnings codes for regular ("RGN" and "RHl"), overtime
5 ("OTl"), and double time ("DBl") work hours, plus various codes for types of paid
6 time o f f Additionally, the payroll data included earnings codes for several types of
7 "bonus" payments made to employees, including Bonus-Other Plans ("BOP"),
8 Incentive-Other Plans ("INC"), Bonus-Spot ("BSP"), Wellness Incentive ("WEI"),
9 Dental Flex $ for Elect ("DFE"), Medical Flex $ for Elect ("MFE"), and Medical Flex
10 $ for Waive ("MFW"). The period start and end dates listed for each earnings record
11 were generally consistent with Health Net's standard bi-weekly pay cycle. However,
12 certain payments, especially those marked WEI, indicated that they related to off-cycle
13 periods.
14 6. The time data for Spears included 10,207 unique records with time
15 punches dated between September 15, 2014 and August 19, 2016. The time data for
16 Arana included 10,963 unique records with time punches dated between April 5, 2013
17 and November 16, 2015. I was unable to fully analyze the time records due various
18 time irregularities and indecipherable coding contained within the data. For example,
19 there are over one thousand records with incomplete time punch data. Additionally,
20 there are over ten thousand records where the start and end punch times match the start
21 and end times of another record. There are also a number of records with overlapping
22 punch times. Due to these reasons, I will not be able to analyze the time records until I
23 receive additional information on how to interpret the data.
24 7. Since I am currently unable to utilize the time records to match the
25 amount of hours worked with each unique period found in the payroll records, I
26 grouped the payroll records based on the check date for my preliminary analysis.
27 Hence, for each check date I calculated the total number of work hours and related
28 eamings (i.e., regular, overtime, and double time), and the total amount of the various
2
DECLARATION OF ERIC R. LIETZOW
"bonus" payments.
2 8. I next calculated the rate of pay that was utilized for the regular, overtime,
3 and double time earnings. I observed that the overtime and double time rate of pay
4 appeared to have only been increased in periods that included a BON or INC payment.
5 As such, it would appear that the other types of bonus payments (BSP, WEI, DFE,
6 MFE, and MFW) were not included in the regular rate calculation for the purpose of
7 paying overtime and double time premiums.
8 9. For each of the bonus types that were not included in the regular rate
9 calculation (BSP, WEI, DFE, MFE, and MFW), I first divided the bonus earnings
10 amounts for each check date with the total number of work hours reported on the same
11 check date to arrive at an hourly bonus rate. I next multiplied one-half of this rate
12 times the overtime hours, if any, plus the full hourly bonus rate times any double time
13 hours to arrive at the amount of unpaid overtime premiums.
14 10. As shown in Exhibit B, attached hereto, I calculated $18.48 of unpaid
15 overtime premiums relating to DFE earnings and $49.02 of unpaid overtime premiums
16 relating to MFW earnings based on Spears' payroll data. In total, unpaid overtime
17 premiums were calculated as $67.50. I was also asked to calculate interest on the
18 unpaid overtime premiums. Assuming a 10% simple interest rate from each check
19 date through January 5, 2018, interest on unpaid overtime premiums totals $16.46.
20 Therefore, based on my preliminary analysis, the total amount of unpaid wage
21 damages owed to Spears is $86.96.
22 11. As shown in Exhibit C, attached hereto, I calculated $165.77 of unpaid
23 overtime premiums relating to BSP earnings, $53.07 of unpaid overtime premiums
24 relating to WEI eamings, $293.20 of unpaid overtime premiums relating to DFE
25 eamings, and $4,875.01 of unpaid overtime premiums relating to MFE earnings based
26 on Arana's payroll data. In total, unpaid overtime premiums were calculated as
27 $5,387.05. I was also asked to calculate interest on the unpaid overtime premiums.
28 Assuming a 10% simple interest rate from each check date through January 5, 2018,
3
DECLARATION OF ERIC R. LIETZOW
1 interest on unpaid overtime premiums totals $1,701.38. Therefore, based on my
2 preliminary analysis, the total amount of unpaid wage damages owed to Arana is
3 $7,088.43.
4 12. I reserve the right to update my analysis of damages upon the receipt of
5 additional relevant information.
6 13. I have provided trial testimony in the following matters during the last
7 four years:
8 a. In re: Massoud Tayyar, Debtor (United States Bankruptcy Court,
9 Central District of California # 2:13-bk-37454-WB, 2015)
10 b. Curtis Patton v. Dollar Tree Stores, Inc. (United States District
11 Court, Central District of California, Case No. CV 15-3813-MWF
12 (PFWx), 2017)
13 14. In the last four years I have provided deposition testimony in the
14 following matters:
15 a. Sherry Dobrosky v. Arthur J. Gallagher Service Company, LLC, et al.
16 (Riverside Superior Court #RIC 1302147, 2014)
17 b. Elliott Olvera v. El Polio Loco, Inc., et al. (Orange County Superior
18 Court #30-2014-00707367-CU-OE-CXC, 2015)
19 c. Christina Culley v. Lincare, Inc., et al. (United States District Court
20 for the Eastern District #2:15-cv-00081-GEB-CMK, 2016)
21 d. Laurel Rowe v. Michael Stores, Inc. (United States District Court,
22 Norther District of California, Case No. 15-cv-01595-EJD, 2016)
23 e. Bonnie Cardoza v. Wal-Mart Associates, Inc. (Alameda County
24 Superior Court, Case No. RG15756555, 2016)
25 f Lynn Metrow v. Liberty Mutual Managed Care, LLC (San Bernardino
26 County Superior Court, Case No. CIVDS1602717, 2017)
27 g. Curtis Patton v. Dollar Tree Stores, Inc. (United States District Court,
28 Central District of California, Case No. CV 15-3813-MWF (PFWx),
4
DECLARATION OF ERIC R. LIETZOW
2017)
2 15. I have authored no publications in the last 10 years.
3 16. DM&A's compensation for work performed in connection with this
4 engagement is at our standard billing rates on a time and materials basis. At present,
5 my standard hourly rate is $250 and my hourly rate for testimony is $300.
6 I DECLARE UNDER PENALTY OF PERJURY UNDER THE LAWS OF
7 THE STATE OF CALIFORNIA AND THE UNITED STATES OF AMERICA THAT
8 THE FOREGOE^JG IS TRUE AND CORRECT.
9 Executed this 5**^ day of January, 2018 at Los Angeles, California.
10
11
12 Eric R. Lietzow
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
DECLARATION OF ERIC R. LIETZOW
EXHIBIT "A"
PROFESSIONAL QUALIFICATIONS
ERIC R. LIETZOW, CPA/ABV
SENIOR MANAGER
PROFESSIONAL BACKGROUND
Mr. Lietzow brings 20 years of experience in litigation consulting and forensic accounting to Desmond,
Marcello & Amster ("DM&A"). Mr. Lietzow specializes in the calculation of economic damages in connection
with various types of litigation matters. These assignments regularly require the analysis of financial and/or
operating data for the involved enterprise, research into economic and industry factors that may impact the
analysis, the identification and quantification of economic damages resulting from alleged wrongful conduct,
and the preparation of reports to summarize the work performed and opinions reached. For many of these
projects, Mr. Lietzow is required to analyze vast amounts of data which he accomplishes by utilizing
sophisticated database and spreadsheet modeling techniques.
Of additional relevance, Mr. Lietzow has been retained as an expert witness in numerous wage and hour class
action matters. To calculate damages in these matters, he must analyze substantial volumes of data, including
payroll records, time punch data, and other employment information. The specific damages calculated using
this data typically include unpaid wages, underpaid overtime premiums, unpaid meal and rest break premiums,
unreimbursed expenses, and various statutory and civil penalties resulting from labor code violations.
When not providing economic damage or forensic accounting services to clients, Mr. Lietzow is frequently
involved in the valuation of businesses and other ownership interests for varying purposes, including gift and
estate tax, shareholder dissolution, and eminent domain. Many of the assignments completed by Mr. Lietzow
require the analysis of financial risks and uncertainties. In these instances, Mr. Lietzow regularly develops
discount rates and required rates of return to properly account for the risks inherent to the cash flows being
examined.
Previously, Mr. Lietzow had been involved with hundreds of class action notice and settlement administration
projects. His responsibilities included class member database design and management, settlement allocation
calculations, document preparation, coordination of notice procedures, implementation of claim form processing
protocols, payroll and income tax return preparation, and overall project management.
Prior to joining DM&A, Mr. Lietzow was affiliated with BDO Seidman, Biggs & Company, and WGI
Solutions.
EDUCATION
Mr. Lietzow holds a bachelor's degree in business administration with an emphasis in accounting from
California State University, Long Beach, where he graduated magna cum laude.
PROFESSIONAL AFFILIATIONS
Mr. Lietzow is a Certified Public Accountant (CPA) in California. His has also earned the Accredited in
Business Valuation Credential (ABV), which is awarded by the American Institute of Certified Public
Accountants (AICPA). He is a member of the AICPA, the California Society of CPAs (CalCPA) and the
Association of Certified Fraud Examiners (ACFE).
TRIAL TESTIMONY
In re: Massoud Tayyar, Debtor (May 2015)
Analysis of reasonable interest rates on commercial loans in a bankruptcy action
Curtis Patton v. Dollar Tree Stores, Inc., et ai (October 2017)
Analysis of wage statement violations in connection with a wage and hour class action
DEPOSITION TESTIMONY
American Construction v. Shered Holiday, LLC (August 2008)
Economic damage analysis in connection with a construction contract dispute
Enrique Esparza v. Safeway Inc, et aL (March 2013)
Analysis of meal break violations in connection with a wage and hour class action
Sherry Dobrosky v. Arthur J. Gallagher Service Company, LLC, et al. (December 2014)
Analysis of unpaid wages and meal break violations in connection with a wage and hour class action
Elliott Olvera v. El Polio Loco, Inc., et al. (October 2015)
Analysis of unpaid wages in connection with a wage and hour class action
Christina Culley v. Lincare, Inc., et al. (June 2016)
Analysis of unpaid wages and meal break violations in connection with a wage and hour class action
Laurel Rowe v. Michaels Stores, Inc, ei aL (August 2016)
Analysis of potential time shaving issues in connection with a wage and hour class action
Bonnie Cardoza v. Wal-Mart Associates, Inc., etaL (December 2016)
Analysis of unpaid wages and meal break violations in connection with a wage and hour class action
Lynn Metrow v. Liberty Mutual Managed Care, LLC, et aL (March 2017)
Analysis of unpaid wages in connection with a wage and hour class action
Curtis Patton v. Dollar Tree Stores, Inc, et aL (October 2017)
Analysis of wage statement violations in connection with a wage and hour class action
Eric R. Lietzow Page 2 of 2
EXHIBIT "B"
fN tn O 00 m Ol in rM tD in o O ro rsj ' f i n ro tD PM r o to Ol ro tD St P*
tD rvi rn in in 00 00
o 00 o Ol ro p rsj tn ro 00 PO Ol Ol 00 Ol q p^ fN CO
rsi rri rri rn rt d r\i t-J rsj ro t-i ni ro ro d rri I-i I-i tri t-i rt fN rj d t-i I-i I-i I-i
•OT- t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A
rsi pN m in o 00 O 00 in ro m a> ID O U3 to Ol o in rg rM 00 tn i n 00 00 i n
VD P^ 00 p rsj 00 p q lO rsi ID lO rt in ro rM Ol ro ro rn rt fM fN PM rt rsj
d d d d i-i d d d d i-i d tH d d d d d d d d d d d d d d d d d d d d
W to- t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A tA t A t A t A t A t A t A t A t A t A
O m i n O Ol p^ rM 00 O pN 00 rt Ol Psl 00 ro pN Ol 00 P- Ol to 00 Ol r j
IT) pv in tD tp tH 00 00 to 00 in 00 tp tD rt ID tp tp ro
q P*. ro
q p q
rN rsj rsj rsj ro d iH ro ro t-i rri rsj d rsj rO rsj d rsj t-i t-i fN rsj d t-i I-l
•t/v t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A tA t A t A t A t A t A t A
i n O o o ro tD rsj Ol r- in Ol rt ro ID ID Ol rt rt tD rt to rsi Ol 00
00 00 p in tn rM p ro 00 Ol in 00 p O} 'f p p 00 ro rt rsj P^ IT)
m p p rM rt
t-i rsj rsj d rsj rsj rsj t-i d t-i rsj d fN tH d ro t-i rt rt
d t-i rt
d t-i
w •tA t A t A t A t A t A t A tA W t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t/> t A t A t A t A t A t A t A t A t A t A t A t A
t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A w t A t A t A t A t A t A t A t A t A t A
cn
i n
i n
00
t£> ID
i n
p^
tD
O^
Ol
tH
Ol
ro 00 S ro tD
q
rM
PN
fN
rsj
rt P^
P*. P^
00
rt
to Ol
ro
fN
ro
P-
rsj
in tD
m
i n
tD
pN
lA fN
00 O ID O
ro
' f
d d d d d d d d d t-i d d d d d d d d d d I-i
d d d d d d d d d d
•t/v t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A
•t/v t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A •tA t A t A t A t A t A t A t A t A t A
o
z
<
I-
1/V t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A tn t A t A t A t A t A t A t A t A t A t A t A
^
< i oi rn
t-i
00 00
I-l
00 d ro t-i
f-i
oi r j
d 00 rt oH oi r f i 00
T-I
d prt^ ' f tA tA tA t A t A tA tA tA t A tA
tn
to
fN
fN
O
rt
to
tD
P-
LO
O
rM
to
Ol
O
P
in
Ol
rsi
ID
to
00 ^
00
Ol
00
O
in
ro
O l to
p*; Lfi psj P^ rri tri oi d rsj ni oi fN od rri tri
• PN fN
p*^ oi d 00 oi rt td td p*^ in in rri oi pC
rt '
tA tA tA tA tA tA tA tA w tA tA tA 1/V t A tA tA tA t A
<
z
Pv ro o o
< O
in
Ol
00
in
ro
q
tn
cc
< tA tA tA tA tA tA tA tA tA tA tA tA tA t A tA tA tA tA
< PN
O pN
Lfi
' to
rt
z i tA tA t A tA tA tA tA tA tA tA tA tA tA tA tA t A tA tA
fs
<5
X i tA tA t A tA tA tA tA tA tA tA tA tA tA tA tA tA tA tA
:> i ^ ^ ^ ^
: tn lij q q q q to to Ol Ol Ol o> Ol Ol Ol Ol Ol Ol CTl
• < Q-
00 00 00 00 00
00
00
00
00
od od
00 0 0
00
00
00
00
od od
00 00
00
00
od
00
00
00
59
i^^ 00 00 00 00 00 00 Ol Ol Ol Ol Ol Ol Ol Ol Ol Ol Ol
o p
Z oe tA tA tA tA tA tA tA tA tA tA tA tA tA tA tA t A tA tA
< D.
'a- 'f -
< tA tA tA tA tA tA tA tA tA tA tA tA tA tA tA tA tA tA
Z o O o o
o O o O
5 uS u^ in
' ' ro ' ' ' ro ' ' ' ro ' ro '
tA tA tA tA tA tA tA tA tA tA tA tA tA tA tA tA tA tA
o
' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ,000.0 '
rt
tA tA tA tA tA tA tA tA tA tA tA tA tA tA tA tA tA tA
O O o O 00 tn tn in tn O O o O O LO O
8 pN
00
P^
O
P^
q
rt
p
t-i
O
O
rsj
LO O
00
rsj
rri
pN
rsj
pN
o
od rri
O
P^
Ol
d
O
d
p
nj
p^
fsj
m
to
Ol O o rg 00 Ol ro O 00 Ol O |N» Ol Ol Ol Ol Ol
rt rt rt rt
O tn O m o o O in o
rg in rM LA in
P p p
T-i d d d d p^ p*^ td rsj
r j lA o m o o 00 o m in tn O o o o O in
pN
o
rt o PN
q q
rt
in m PN pN pN O p Ol o p LO
fN ro
d 00
rsi
t-i
PSJ
< j •
Preview
1 BLUMENTHAL NORDREHAUG BHOWMIK DE BLOUW LLF"^ LiORSEB Norman B. Blumenthal (State Bar #068687) 2 Kyle R. Nordrehaug (State Bar #205975) ^0:l8HAR2O PH 3:52 Aparajit Bhowmik (State Bar #248066) c .Dc^.nn -. 3 Piya Mukherjee (State Bar #274217) ^"^^^Bllk^mm^iifmtA- CGO.STYGFSAeRAHfcNfr Victoria B. R.ivapalacio (State Bar #275115) 4 2255 Calle Clara La Jolla, CA 92037 5 Telephone: (858)551-1223 Facsimile: (858) 551-1232 6 Attomeys for Plaintiff 7 8 9 10 SUPERIOR COURT OF THE STATE OF CALIFORNIA 11 IN AND FOR THE COUNTY OF SACRAMENTO 12 13 14 ANDP^EA SPEARS an individual, on Case No. 34-2017-00210560-CU-OE-GDS behalf of herself ana on behalf of all 15 persons similarly situated, CLASS ACTION 16 Plaintiff, DECLARATION OF E R I C R. LIETZOW 17 vs. Telephone Appearance 18 HEALTH NET OF CALIFORNIA, Hearing Date: April 16, 2018 19 INC., a Califomia Corporation; and Hearing Time: 9:00 a.m. Does 1 through 50, Inclusive, Judge: Raymond M . Cadei 20 Dept.: 54 Defendants. 21 Action Filed: April 5, 2017 22 23 24 25 26 27 28 AMENDED NOTICE MOTION TO COMPEL FURTHER RESPONSES TO DISCOVERY CASE No. 34-2017-00210560 Filed by Fax 1 DECLARATION OF ERIC R. LIETZOW 2 I , Eric R. Lietzow, declare as follows: 3 1. I am a Senior Manager at Desmond, Marcello & Amster (DM&A), a 4 valuation and litigation consulting firm. I am a Certified Public Accountant (CPA) and 5 have an undergraduate degree in business with an emphasis in accounting from 6 California State University, Long Beach. Attached hereto as Exhibit A is a true and 7 correct copy of my Curriculum Vitae which accurately and truthfully sets forth my 8 education, background and training. I make this declaration based on my personal 9 knowledge, and if called to testify, I could and would testify competently to the facts 10 stated in this declaration. 11 2. I have practiced in the valuation and litigation consulting profession since 12 1997 and have focused primarily on providing business valuation, economic damage, 13 and forensic accounting services to attorneys and their clients. Of particular relevance 14 to this matter is my substantial experience computing economic damages in connection 15 with class action litigation matters. 16 3. I was retained to consult on economic damages in connection with the 17 Andrea Spears, et al. v. Health Net of California, Inc. and Tomas R. Arana, et al. v. 18 HealthNet, Inc. matters (Consolidated Case No. 34-2017-00210560-CU-OE-GDS). I 19 was currently asked to analyze time and payroll data provided for Andrea Spears 20 ("Spears") and Tomas Arana ("Arana") and prepare a preliminary calculation of 21 unpaid bonus overtime premiums. 22 4. In connection with my analysis, I was provided with five Microsoft Excel 23 spreadsheet files. One file contained payroll information for Spears 24 (HNCA000I94.xls), one file contained time records for Spears (HNCA000195.xlsx), 25 two files contained payroll data for Arana (HNCA000196.xls and HNCA000197.xlsx), 26 and one file contained time records for Arana {HNCA000198.xlsx). 27 5. The payroll data for Spears included 253 unique records with check dates 28 between September 26, 2014 and September 30, 2016. The payroll data for Arana DECLARATION OF ERIC R. LIETZOW 1 included 452 unique records with check dates between October 25, 2013 and August 2 26, 2016. Among other data, each record in the payroll data included a check date, 3 period start and end dates, an earnings code, and the related hours and dollar amount. 4 The payroll data included earnings codes for regular ("RGN" and "RHl"), overtime 5 ("OTl"), and double time ("DBl") work hours, plus various codes for types of paid 6 time o f f Additionally, the payroll data included earnings codes for several types of 7 "bonus" payments made to employees, including Bonus-Other Plans ("BOP"), 8 Incentive-Other Plans ("INC"), Bonus-Spot ("BSP"), Wellness Incentive ("WEI"), 9 Dental Flex $ for Elect ("DFE"), Medical Flex $ for Elect ("MFE"), and Medical Flex 10 $ for Waive ("MFW"). The period start and end dates listed for each earnings record 11 were generally consistent with Health Net's standard bi-weekly pay cycle. However, 12 certain payments, especially those marked WEI, indicated that they related to off-cycle 13 periods. 14 6. The time data for Spears included 10,207 unique records with time 15 punches dated between September 15, 2014 and August 19, 2016. The time data for 16 Arana included 10,963 unique records with time punches dated between April 5, 2013 17 and November 16, 2015. I was unable to fully analyze the time records due various 18 time irregularities and indecipherable coding contained within the data. For example, 19 there are over one thousand records with incomplete time punch data. Additionally, 20 there are over ten thousand records where the start and end punch times match the start 21 and end times of another record. There are also a number of records with overlapping 22 punch times. Due to these reasons, I will not be able to analyze the time records until I 23 receive additional information on how to interpret the data. 24 7. Since I am currently unable to utilize the time records to match the 25 amount of hours worked with each unique period found in the payroll records, I 26 grouped the payroll records based on the check date for my preliminary analysis. 27 Hence, for each check date I calculated the total number of work hours and related 28 eamings (i.e., regular, overtime, and double time), and the total amount of the various 2 DECLARATION OF ERIC R. LIETZOW "bonus" payments. 2 8. I next calculated the rate of pay that was utilized for the regular, overtime, 3 and double time earnings. I observed that the overtime and double time rate of pay 4 appeared to have only been increased in periods that included a BON or INC payment. 5 As such, it would appear that the other types of bonus payments (BSP, WEI, DFE, 6 MFE, and MFW) were not included in the regular rate calculation for the purpose of 7 paying overtime and double time premiums. 8 9. For each of the bonus types that were not included in the regular rate 9 calculation (BSP, WEI, DFE, MFE, and MFW), I first divided the bonus earnings 10 amounts for each check date with the total number of work hours reported on the same 11 check date to arrive at an hourly bonus rate. I next multiplied one-half of this rate 12 times the overtime hours, if any, plus the full hourly bonus rate times any double time 13 hours to arrive at the amount of unpaid overtime premiums. 14 10. As shown in Exhibit B, attached hereto, I calculated $18.48 of unpaid 15 overtime premiums relating to DFE earnings and $49.02 of unpaid overtime premiums 16 relating to MFW earnings based on Spears' payroll data. In total, unpaid overtime 17 premiums were calculated as $67.50. I was also asked to calculate interest on the 18 unpaid overtime premiums. Assuming a 10% simple interest rate from each check 19 date through January 5, 2018, interest on unpaid overtime premiums totals $16.46. 20 Therefore, based on my preliminary analysis, the total amount of unpaid wage 21 damages owed to Spears is $86.96. 22 11. As shown in Exhibit C, attached hereto, I calculated $165.77 of unpaid 23 overtime premiums relating to BSP earnings, $53.07 of unpaid overtime premiums 24 relating to WEI eamings, $293.20 of unpaid overtime premiums relating to DFE 25 eamings, and $4,875.01 of unpaid overtime premiums relating to MFE earnings based 26 on Arana's payroll data. In total, unpaid overtime premiums were calculated as 27 $5,387.05. I was also asked to calculate interest on the unpaid overtime premiums. 28 Assuming a 10% simple interest rate from each check date through January 5, 2018, 3 DECLARATION OF ERIC R. LIETZOW 1 interest on unpaid overtime premiums totals $1,701.38. Therefore, based on my 2 preliminary analysis, the total amount of unpaid wage damages owed to Arana is 3 $7,088.43. 4 12. I reserve the right to update my analysis of damages upon the receipt of 5 additional relevant information. 6 13. I have provided trial testimony in the following matters during the last 7 four years: 8 a. In re: Massoud Tayyar, Debtor (United States Bankruptcy Court, 9 Central District of California # 2:13-bk-37454-WB, 2015) 10 b. Curtis Patton v. Dollar Tree Stores, Inc. (United States District 11 Court, Central District of California, Case No. CV 15-3813-MWF 12 (PFWx), 2017) 13 14. In the last four years I have provided deposition testimony in the 14 following matters: 15 a. Sherry Dobrosky v. Arthur J. Gallagher Service Company, LLC, et al. 16 (Riverside Superior Court #RIC 1302147, 2014) 17 b. Elliott Olvera v. El Polio Loco, Inc., et al. (Orange County Superior 18 Court #30-2014-00707367-CU-OE-CXC, 2015) 19 c. Christina Culley v. Lincare, Inc., et al. (United States District Court 20 for the Eastern District #2:15-cv-00081-GEB-CMK, 2016) 21 d. Laurel Rowe v. Michael Stores, Inc. (United States District Court, 22 Norther District of California, Case No. 15-cv-01595-EJD, 2016) 23 e. Bonnie Cardoza v. Wal-Mart Associates, Inc. (Alameda County 24 Superior Court, Case No. RG15756555, 2016) 25 f Lynn Metrow v. Liberty Mutual Managed Care, LLC (San Bernardino 26 County Superior Court, Case No. CIVDS1602717, 2017) 27 g. Curtis Patton v. Dollar Tree Stores, Inc. (United States District Court, 28 Central District of California, Case No. CV 15-3813-MWF (PFWx), 4 DECLARATION OF ERIC R. LIETZOW 2017) 2 15. I have authored no publications in the last 10 years. 3 16. DM&A's compensation for work performed in connection with this 4 engagement is at our standard billing rates on a time and materials basis. At present, 5 my standard hourly rate is $250 and my hourly rate for testimony is $300. 6 I DECLARE UNDER PENALTY OF PERJURY UNDER THE LAWS OF 7 THE STATE OF CALIFORNIA AND THE UNITED STATES OF AMERICA THAT 8 THE FOREGOE^JG IS TRUE AND CORRECT. 9 Executed this 5**^ day of January, 2018 at Los Angeles, California. 10 11 12 Eric R. Lietzow 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 DECLARATION OF ERIC R. LIETZOW EXHIBIT "A" PROFESSIONAL QUALIFICATIONS ERIC R. LIETZOW, CPA/ABV SENIOR MANAGER PROFESSIONAL BACKGROUND Mr. Lietzow brings 20 years of experience in litigation consulting and forensic accounting to Desmond, Marcello & Amster ("DM&A"). Mr. Lietzow specializes in the calculation of economic damages in connection with various types of litigation matters. These assignments regularly require the analysis of financial and/or operating data for the involved enterprise, research into economic and industry factors that may impact the analysis, the identification and quantification of economic damages resulting from alleged wrongful conduct, and the preparation of reports to summarize the work performed and opinions reached. For many of these projects, Mr. Lietzow is required to analyze vast amounts of data which he accomplishes by utilizing sophisticated database and spreadsheet modeling techniques. Of additional relevance, Mr. Lietzow has been retained as an expert witness in numerous wage and hour class action matters. To calculate damages in these matters, he must analyze substantial volumes of data, including payroll records, time punch data, and other employment information. The specific damages calculated using this data typically include unpaid wages, underpaid overtime premiums, unpaid meal and rest break premiums, unreimbursed expenses, and various statutory and civil penalties resulting from labor code violations. When not providing economic damage or forensic accounting services to clients, Mr. Lietzow is frequently involved in the valuation of businesses and other ownership interests for varying purposes, including gift and estate tax, shareholder dissolution, and eminent domain. Many of the assignments completed by Mr. Lietzow require the analysis of financial risks and uncertainties. In these instances, Mr. Lietzow regularly develops discount rates and required rates of return to properly account for the risks inherent to the cash flows being examined. Previously, Mr. Lietzow had been involved with hundreds of class action notice and settlement administration projects. His responsibilities included class member database design and management, settlement allocation calculations, document preparation, coordination of notice procedures, implementation of claim form processing protocols, payroll and income tax return preparation, and overall project management. Prior to joining DM&A, Mr. Lietzow was affiliated with BDO Seidman, Biggs & Company, and WGI Solutions. EDUCATION Mr. Lietzow holds a bachelor's degree in business administration with an emphasis in accounting from California State University, Long Beach, where he graduated magna cum laude. PROFESSIONAL AFFILIATIONS Mr. Lietzow is a Certified Public Accountant (CPA) in California. His has also earned the Accredited in Business Valuation Credential (ABV), which is awarded by the American Institute of Certified Public Accountants (AICPA). He is a member of the AICPA, the California Society of CPAs (CalCPA) and the Association of Certified Fraud Examiners (ACFE). TRIAL TESTIMONY In re: Massoud Tayyar, Debtor (May 2015) Analysis of reasonable interest rates on commercial loans in a bankruptcy action Curtis Patton v. Dollar Tree Stores, Inc., et ai (October 2017) Analysis of wage statement violations in connection with a wage and hour class action DEPOSITION TESTIMONY American Construction v. Shered Holiday, LLC (August 2008) Economic damage analysis in connection with a construction contract dispute Enrique Esparza v. Safeway Inc, et aL (March 2013) Analysis of meal break violations in connection with a wage and hour class action Sherry Dobrosky v. Arthur J. Gallagher Service Company, LLC, et al. (December 2014) Analysis of unpaid wages and meal break violations in connection with a wage and hour class action Elliott Olvera v. El Polio Loco, Inc., et al. (October 2015) Analysis of unpaid wages in connection with a wage and hour class action Christina Culley v. Lincare, Inc., et al. (June 2016) Analysis of unpaid wages and meal break violations in connection with a wage and hour class action Laurel Rowe v. Michaels Stores, Inc, ei aL (August 2016) Analysis of potential time shaving issues in connection with a wage and hour class action Bonnie Cardoza v. Wal-Mart Associates, Inc., etaL (December 2016) Analysis of unpaid wages and meal break violations in connection with a wage and hour class action Lynn Metrow v. Liberty Mutual Managed Care, LLC, et aL (March 2017) Analysis of unpaid wages in connection with a wage and hour class action Curtis Patton v. Dollar Tree Stores, Inc, et aL (October 2017) Analysis of wage statement violations in connection with a wage and hour class action Eric R. Lietzow Page 2 of 2 EXHIBIT "B" fN tn O 00 m Ol in rM tD in o O ro rsj ' f i n ro tD PM r o to Ol ro tD St P* tD rvi rn in in 00 00 o 00 o Ol ro p rsj tn ro 00 PO Ol Ol 00 Ol q p^ fN CO rsi rri rri rn rt d r\i t-J rsj ro t-i ni ro ro d rri I-i I-i tri t-i rt fN rj d t-i I-i I-i I-i •OT- t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A rsi pN m in o 00 O 00 in ro m a> ID O U3 to Ol o in rg rM 00 tn i n 00 00 i n VD P^ 00 p rsj 00 p q lO rsi ID lO rt in ro rM Ol ro ro rn rt fM fN PM rt rsj d d d d i-i d d d d i-i d tH d d d d d d d d d d d d d d d d d d d d W to- t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A tA t A t A t A t A t A t A t A t A t A O m i n O Ol p^ rM 00 O pN 00 rt Ol Psl 00 ro pN Ol 00 P- Ol to 00 Ol r j IT) pv in tD tp tH 00 00 to 00 in 00 tp tD rt ID tp tp ro q P*. ro q p q rN rsj rsj rsj ro d iH ro ro t-i rri rsj d rsj rO rsj d rsj t-i t-i fN rsj d t-i I-l •t/v t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A tA t A t A t A t A t A t A i n O o o ro tD rsj Ol r- in Ol rt ro ID ID Ol rt rt tD rt to rsi Ol 00 00 00 p in tn rM p ro 00 Ol in 00 p O} 'f p p 00 ro rt rsj P^ IT) m p p rM rt t-i rsj rsj d rsj rsj rsj t-i d t-i rsj d fN tH d ro t-i rt rt d t-i rt d t-i w •tA t A t A t A t A t A t A tA W t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t/> t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A w t A t A t A t A t A t A t A t A t A t A cn i n i n 00 t£> ID i n p^ tD O^ Ol tH Ol ro 00 S ro tD q rM PN fN rsj rt P^ P*. P^ 00 rt to Ol ro fN ro P- rsj in tD m i n tD pN lA fN 00 O ID O ro ' f d d d d d d d d d t-i d d d d d d d d d d I-i d d d d d d d d d d •t/v t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A •t/v t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A •tA t A t A t A t A t A t A t A t A t A o z < I- 1/V t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A t A tn t A t A t A t A t A t A t A t A t A t A t A ^ < i oi rn t-i 00 00 I-l 00 d ro t-i f-i oi r j d 00 rt oH oi r f i 00 T-I d prt^ ' f tA tA tA t A t A tA tA tA t A tA tn to fN fN O rt to tD P- LO O rM to Ol O P in Ol rsi ID to 00 ^ 00 Ol 00 O in ro O l to p*; Lfi psj P^ rri tri oi d rsj ni oi fN od rri tri • PN fN p*^ oi d 00 oi rt td td p*^ in in rri oi pC rt ' tA tA tA tA tA tA tA tA w tA tA tA 1/V t A tA tA tA t A < z Pv ro o o < O in Ol 00 in ro q tn cc < tA tA tA tA tA tA tA tA tA tA tA tA tA t A tA tA tA tA < PN O pN Lfi ' to rt z i tA tA t A tA tA tA tA tA tA tA tA tA tA tA tA t A tA tA fs <5 X i tA tA t A tA tA tA tA tA tA tA tA tA tA tA tA tA tA tA :> i ^ ^ ^ ^ : tn lij q q q q to to Ol Ol Ol o> Ol Ol Ol Ol Ol Ol CTl • < Q- 00 00 00 00 00 00 00 00 00 od od 00 0 0 00 00 00 00 od od 00 00 00 00 od 00 00 00 59 i^^ 00 00 00 00 00 00 Ol Ol Ol Ol Ol Ol Ol Ol Ol Ol Ol o p Z oe tA tA tA tA tA tA tA tA tA tA tA tA tA tA tA t A tA tA < D. 'a- 'f - < tA tA tA tA tA tA tA tA tA tA tA tA tA tA tA tA tA tA Z o O o o o O o O 5 uS u^ in ' ' ro ' ' ' ro ' ' ' ro ' ro ' tA tA tA tA tA tA tA tA tA tA tA tA tA tA tA tA tA tA o ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ,000.0 ' rt tA tA tA tA tA tA tA tA tA tA tA tA tA tA tA tA tA tA O O o O 00 tn tn in tn O O o O O LO O 8 pN 00 P^ O P^ q rt p t-i O O rsj LO O 00 rsj rri pN rsj pN o od rri O P^ Ol d O d p nj p^ fsj m to Ol O o rg 00 Ol ro O 00 Ol O |N» Ol Ol Ol Ol Ol rt rt rt rt O tn O m o o O in o rg in rM LA in P p p T-i d d d d p^ p*^ td rsj r j lA o m o o 00 o m in tn O o o o O in pN o rt o PN q q rt in m PN pN pN O p Ol o p LO fN ro d 00 rsi t-i PSJ < j •