Kmart Faces California Wage and Hour Class Action

Kmart workers have filed a California wage and hour class action lawsuit against the popular retail store chain, alleging workers are paid with debit cards in order to hold back earned wages, float money, and split fees with Citibank, the provider of the debit cards.

Kmart California Wage and Hour Lawsuit Centers on Debit Card

At the end of June, Plaintiff Donte W. sued Kmart, also known as Sears Holding Corp., in California Superior Court, alleging Kmart has paid its employees with Citibank debit cards during that last four years. These debit cards cost Kmart workers 50 cents per transaction to receive their hard earned wages, meaning these employees have had to pay Citibank fees “hundreds of thousands if not millions” during the course of their employment at Kmart.

Citibank was not listed as one of the defendants in Donte’s Kmart California wage and hour class action lawsuit.

According to the plaintiff, Kmart’s debit card system of California wage payment is “fraudulent,” as the Citibank fees and deductions deprive Kmart workers of their full earned wages. On top of the 50 cent fee charged per debit card withdrawal, the Kmart workers’ Citibank debit cards also have limitations on the amount that can be withdrawn at one time. This means that they cannot possess all their wages at once and must be charged the 50 cent withdrawal fee more than once.

The Kmart California wage and hour class action lawsuit claims Kmart and Citibank set up this debit card wage scheme so they could use Kmart workers’ wages to “float” investments. While this term is not defined in Donte’s Kmart California wage class action lawsuit, it most likely refers to the fact that Kmart and/or Citibank earn interest of employees’ wages during the holding periods.

Kmart California Wage and Hour Claims

Donte’s California wage and hour class action lawsuit alleges Kmart does not clearly include overtime wages on workers’ pay stubs and also neglects to fully reimburse employees for travel expenses and/or mileage when they are temporarily reassigned to other Kmart locations.

Donte seeks class certification for this Kmart California wage and hour class action lawsuit, injunctive relief, restitution, disgorgement of profits by Kmart, and finally punitive damages against his employer for unfair business practices, failure to comply with the Private Attorneys General Act, and various other violations of California Labor Code.

Wage and hour lawsuits and class action lawsuits like the one filed against Kmart by Donte are meant to protect employee rights in California to fair and full wages, as well as hold companies and employers accountable to both federal and California labor laws that outline proper wage, overtime pay, meal and rest breaks, vacation time, and other employee rights in California protected by CA labor code.

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