PetSmart Employees Win $10M Wage and Hour Settlement

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PetSmart has agreed to a $10 million settlement in a collective wage and hour class action lawsuit filed against the company. If approved, the class action settlement funds will be distributed to 16,000 current and former animal groomers and other workers across 132 stores.

U.S. District Judge Edward J. Davila granted preliminary approval to the PetSmart class action settlement, which will release PetSmart from certain allegations pertaining to their payment methods towards their pet groomers. The plaintiffs stated that the company had violated state minimum wage laws, including nonexempt employees who were not paid, despite working on their meal breaks.

The PetSmart wage and hour lawsuit was originally filed in Alameda County Superior Court in 2012. It was originally filed on behalf of PetSmart groomers, but was expanded to include minimum wage and meal break violations for nonexempt, hourly employees. The class action lawsuit alleged that PetSmart violated state labor law by failing to compensate pet groomers for the time they spent performing non-grooming duties, such as stocking or cleaning. These allegations originated from a claim that PetSmart paid its stylists 50 percent of the net price of a grooming fee, which allegedly fails to cover the minimum wage requirement for non-grooming duties.

Additionally, the pet groomers claimed that PetSmart did not reimburse them for grooming tools they were required to purchase. Further, they argued the company did not provide them with suitable seats, had improperly calculated vacation pay, did not provide punctually scheduled payments after employees were terminated and failed to pay for meal break violations.

According to the class action lawsuit, the meal break violations were common because the break room was located in the back of store. On their way to the break room, employees would be occasionally forced to assist customers even when they had punched out for their break.

Both legal teams have indicated PetSmart has been cooperative in the litigation process, acknowledging the mistakes and weaknesses in their system. The company not only agreed to the class action settlement, but also vowed to work to correct these errors to prevent future violations. To start, this class action settlement will resolve PetSmart’s policy of only allowing 30 minute meal breaks between six and eight hour shifts, which violates the California labor law that mandates a meal period every five hours.

The PetSmart wage and hour settlement will cover all hourly employees and stylists, grooming trainees and salon managers who worked in California PetSmart stores from May 23, 2008 to the present. A sub-class for terminated employees stretches from May 23, 2009 to the present.

Overview of Wage and Hour Policy

Under federal law, the Fair Labor Standards Act (FLSA) requires that typical, covered employees be paid at least a minimum of $7.25 per hour. This wage must be paid for all hours worked, plus time and one-half regular rates for overtime pay. The only time an employee may be exempt from minimum wage is when they are of managerial or higher employment status, seasonal workers, or work in a tipped wage job, providing that the tips sufficiently meet minimum wage standards.

An approval hearing for the PetSmart settlement has been scheduled for March 7, 2014.

This PetSmart wage and hour lawsuit is Danette M. Moore, et al. v. PetSmart Inc., et al., Case No. 5:12-cv-03577, in the U.S. District Court for the Northern District of California.

File a Wage and Hour Lawsuit Today

If you believe that you or a loved one have not received the wages you deserve, you have legal options. Please visit the Minimum Wage Lawsuits: Service Charge, Wage & Hour Class Action Lawsuit Investigation. There, you can submit your claim for a free legal review and if it qualifies for legal action, a seasoned wage and hour lawyer will contact you for a free, no-obligation consultation. You will be guided through the litigation process at no out-of-pocket expenses or hidden fees. The wage and hour attorneys working this investigation do not get paid until you do.