Costco Settles California Overtime Class Action Lawsuit

A Calfornia overtime class action settlement has been reached, according to documents filed Feb. 3 in California federal court. The large complaint over California employee rights was filed against Costco Wholesale Corp. several years ago after Costco allegedly forced employees to work overtime without appropriate pay.

California Wage Law Violations

Named plaintiffs Eric S. and Joseph M. originally filed the California overtime class action lawsuit in 2009. They alleged that Costco locked their warehouses at the end of shifts, with employees inside, while other Costco supervisors closed the cash registers (and other closing duties). The plaintiffs claimed that they were not paid for the time they were required to wait inside the warehouse, even if they were not working and ready to leave.

U.S. District Judge Gonzalo P. Curiel originally found that while the plaintiffs might be victims of CA wage law violations, there was no way of determining how many of the proposed 30,000 CA overtime Class Members had valid claims and for how long they worked without overtime pay.

Both Eric and Joseph agreed to drop their individual claims as stated in an order on a class action settlement agreement and joint stipulation of dismissal. The order stated that “the individual claims of  [the Plaintiffs] are dismissed with prejudice pursuant to Federal Rule of Civil Procedure 41(a)(2) and the terms of the parties’ Settlement Agreement and Joint Stipulation.”

Eric and Joseph indicated that they planned to appeal the original ruling concerning overtime Class certification, which was denied last April. Prospective Class Members were full-time hourly nonexempt employees of Costco who worked the closing shift between April 8, 2007 and Oct. 1, 2009.

Even though the named plaintiffs dismissed their individual claims concerning California employee rights, they may be entitled to win awards as part of the California overtime class action settlement.

Overtime Laws in California

California labor laws should protect employees from violations such as unpaid overtime, off-the clock work, and misclassification.

Victims of CA overtime law violations may be entitled to lost wages and other compensation. Not all employees are entitled to overtime payment and are exempt. It is possible that some have been misclassified as exempt when in fact they qualify for overtime pay.

Common types of California wage law violations may include:

• Unpaid overtime
• Unpaid wages
• Off-the-clock work
• Misclassification
• Missed meals & breaks
• Donning & doffing
• Less than minimum wage
• Tip pooling

Costco is one of many organizations facing legal complaints concerning overtime laws in California.

This CA Overtime Class Action Lawsuit is Case No 3:09-cv-02473, in the U.S. District Court for the Southern District of California.

Join a Free California Overtime, Wage & Hour Class Action Lawsuit Investigation

If you were forced to work off the clock or without overtime pay in California within the past 2 to 3 years, you have rights – and you don’t have to take on the company alone.

Get a Free Case Evaluation Now