The Stepping Stones Group lawsuit ended in a $4.25 million class action settlement resolving claims that the school-based therapy staffing company underpaid its California hourly workers, denied them proper meal and rest breaks, and failed to reimburse work expenses. San Diego Superior Court Judge Kenneth J. Medel granted final approval on April 12, 2024, in Jenelle Olea et al. v. The Stepping Stones Group LLC et al.1Rulings.law. Olea vs The Stepping Stones Group LLC, Tentative Ruling The company denied wrongdoing.
Who Is Covered
The settlement class includes anyone who worked in California as an hourly, non-exempt employee for any of six related entities between April 16, 2018, and September 2, 2023, and who had not already signed a release. The six employers named as jointly liable were The Stepping Stones Group LLC, Autism Intervention Professionals LLC, EBS Healthcare Staffing Services Inc., EBS Healthcare LLC, STAR of CA LLC, and Behavioral Learning Center Inc. The complaint treated them as an integrated enterprise sharing management and control over employment conditions.2Ferraro Vega Employment Lawyers. First Amended Class and PAGA Action Complaint
The lead plaintiff, Jenelle Olea, was a former Registered Behavioral Technician who filed suit in San Diego Superior Court on October 11, 2022. A parallel Sonoma County case brought by Nicole Foerst was consolidated into it because the claims and parties substantially overlapped.3Trellis Law. Foerst Third Notice of Related Case
What the Lawsuit Alleged
The consolidated complaint set out eleven causes of action under California labor law. At the center were claims that hourly clinicians and technicians worked off the clock and were not made whole for it.4CPT Group. Class Notice Form, Olea v. The Stepping Stones Group
- Unpaid minimum wage and overtime, in violation of California Labor Code sections 1194, 1197, and 510.
- Off-the-clock time spent on session notes, paperwork, and travel between client locations without pay.2Ferraro Vega Employment Lawyers. First Amended Class and PAGA Action Complaint
- Missed or non-compliant meal and rest breaks, with no premium pay. The complaint further alleged the company entered false meal-period records into its timekeeping system without employee authorization.
- Unreimbursed business expenses under Labor Code section 2802, including personal vehicle mileage, home internet, and personal cell phone use.
- Inaccurate itemized wage statements and inadequate recordkeeping.
- Late wage payments during employment and at separation, triggering waiting-time penalties.
- Unfair competition under Business and Professions Code sections 17200–17210.
- Civil penalties under the Private Attorneys General Act (Labor Code section 2698 et seq.).
How the $4.25 Million Is Divided
The gross settlement fund is $4,250,000. Within it, $100,000 is allocated to PAGA penalties covering September 30, 2021 through September 2, 2023; 75% of that goes to the California Labor and Workforce Development Agency and 25% is distributed to eligible class members. Class counsel from Ferraro Vega Employment Lawyers and Melmed Law Group sought roughly $1,416,525 in attorney fees, one-third of the gross. Service payments to the named class representatives totaled $20,000.4CPT Group. Class Notice Form, Olea v. The Stepping Stones Group
What remains is split among class members in proportion to the number of workweeks each person worked during the class period. For tax reporting, 60% of each individual payment is treated as wages on a W-2 and 40% as interest and penalties on a 1099.
How Workers Get Paid
No claim form was required. Class members who took no action were automatically included and set to receive a check in the mail after the settlement became effective. CPT Group Inc. administered the settlement, running a dedicated phone line and website for class members. The deadline to opt out or object was March 15, 2024.4CPT Group. Class Notice Form, Olea v. The Stepping Stones Group
What Class Members Gave Up
By staying in the class, participating members released all claims that were or could have been alleged based on the facts in the complaint and the related PAGA notices during the class period. The defendants admitted no wrongdoing and continue to maintain they complied with California law.
The Wider Backdrop
The Stepping Stones Group is a Boston-based provider of school-based and in-home therapeutic services for children, including speech and language therapy, occupational and physical therapy, school psychology, special education teaching, applied behavioral analysis, and school nursing. It operates in 42 states and reports employing more than 6,000 clinicians serving about 300,000 children a year.5The Stepping Stones Group. Schools It has been backed by private equity since 2017 and is currently owned by Leonard Green & Partners.6Mergr. Leonard Green and Partners Acquires Stepping Stones Group
The Private Equity Stakeholder Project has cited the wage settlement in later reports scrutinizing private equity’s role in special education contracting and autism therapy, arguing that acquisition-driven growth has placed pressure on frontline workers in the industry.7Private Equity Stakeholder Project. Private Equity’s Autism Therapy Boom Is Straining Medicaid