December 12, 2025
Elite Lighting’s Labor Settlement Totals Over $1 Million
Allegations of unpaid wages, missed breaks, and labor violations resolved
Elite Lighting has long positioned itself as a nimble, low-cost maker of downlights and other lighting products — trusted by contractors, visible in distribution, and known for hitting the price points others avoid. But behind the fast shipping and low-cost RL600 LED module trims, court records reveal a very different story playing out on the factory floor.
A class action settlement filed in Los Angeles County Superior Court earlier this year outlines a five-year pattern of alleged labor violations. The claims — brought by a former employee on behalf of hundreds of non-exempt workers — paint a picture of missed breaks, unpaid hours, and recordkeeping failures that, if true, contradict the company’s carefully managed public image.
Elite Lighting initially denied the allegations but eventually agreed to pay nearly $1 million to settle the claims. When factoring in employer-paid payroll taxes, the company’s actual cost will exceed $1 million.
Inside Lighting reached out to Elite owner Hamid Rashidi on Tuesday and again on Wednesday but did not receive a response prior to publication.
What the Lawsuit Alleged
Filed in May 2023, the lawsuit centered on the treatment of Elite Lighting’s hourly employees in Commerce, California beginning in May 2019. The complaint included the following allegations:
- Failure to pay minimum wage and overtime
- Failure to provide required meal and rest breaks
- Failure to reimburse business expenses
- Failure to maintain accurate payroll and timekeeping records
- Failure to pay final wages promptly upon separation
- Issuing inaccurate wage statements
- Unlawful business practices under California’s Business & Professions Code
In August 2023, the plaintiff amended the complaint to include claims under the Private Attorneys General Act (PAGA)—effectively turning the case into a vehicle for civil penalties enforceable by the state of California. That move increased the stakes, both financially and reputationally.
Terms of the Settlement
After an all-day mediation, both sides agreed to settle. The agreement was finalized and the final settlement agreement was filed in August 2025.
Elite Lighting agreed to pay a Gross Settlement Amount of $991,800, allocated as follows:
- $330,600 for plaintiffs' attorneys’ fees
- $30,000 for litigation costs
- $5,000 service award for the named plaintiff
- $9,990 for administrative expenses
- $90,000 in PAGA penalties: $22,500 to employees and $67,500 to the state
That leaves over $500,000 to be distributed among 478 current and former non-exempt employees, based on how many weeks they worked during the class period. Additionally, 302 of the individuals qualify for payouts under the PAGA portion of the case.
After all costs and allocations are deducted, the settlement will distribute about $550,000 to affected workers, with payments averaging just over $1,000 per person based on their work history with the company. That sum represents more than a week's pay for some workers.
Crucially, the $991,800 settlement figure does not include employer-side payroll taxes — a required payment that will push Elite’s total cost above the $1 million mark, though the exact amount is not disclosed in the court documents.
All payments are automatic. Workers do not need to submit claims to receive compensation.
Beyond the Brand Narrative
Elite Lighting is well known in the trade, particularly in electrical distributor and contractor circles. Since its founding in 1998, the company has catered to installers looking for affordable, quick-ship lighting. But it has ambitions beyond that lane.
In 2020, Elite Lighting acquired the assets of Edison Price Lighting, a once-prestigious architectural brand with a legacy in museums, galleries, and institutional projects. The deal expanded Elite’s footprint into higher-end commercial applications, adding weight to its claims of design sophistication and sustainable innovation.
Internally, the company has positioned itself as a progressive manufacturer — publicly touting diversity, human-centric design, and environmental stewardship. But the class action, covering nearly 50,000 workweeks and 10,000 pay periods, tells a different story about how some employees experienced life inside the walls of Elite’s California operations.
