$1.1M Deal to Settle Marshalls Wage and Hour Claims

Marshalls recently agreed to pay around $1.1 million to resolve wage and hour claims regarding unpaid security checks affecting California workers.

The $1.125 million settlement will benefit thousands of workers who were allegedly forced to work off the clock during security checks required by the retailer.

Under the settlement, Class Members include current and former nonexempt employees who worked for Marshalls in California since Aug. 11, 2016, and opted out of the arbitration agreement. Based on an employee’s classification, members are expected to receive between $30 and $80.

The settlement fund itself will provide around 1,125 employees $50 to compensate them for unpaid wages and statutory penalties.

The remaining $697,500 of the settlement is allocated to cover penalties sought under the California Private Attorneys General Act (PAGA). PAGA is a state law that allows employees to seek compensation from companies on behalf of the government for wage law violations.

Of the expected PAGA recovery, the California Labor and Workforce Development Agency will reportedly receive $130,781. The rest of the PAGA penalties will then be distributed to a larger group of employees affected by PAGA claims. Each of the estimated 18,000 workers affected by PAGA are expected to receive a wage payment of around $29 and a non-wage payment of $2.42.

In addition to covering wage payments and PAGA penalties, the $1.1 million settlement will cover $65,000 of administrative costs, $5,000 service awards to each of the lead plaintiffs, $281,250 in court costs, and $15,000 in attorneys’ fees.

Wage and Hour Claim Details

Plaintiffs Alicia R. and Joan P. filed two individual class action lawsuits against Marshalls in 2018.

Alicia, who filed her complaint in August 2018, claimed that the company discriminated against female employees with security checks of purses and bags. Because female workers often carry purses, they were allegedly forced to undergo more security checks. Alicia claimed that she and other employees were not compensated for this time.

Joan brought different claims in her own Marshalls class action lawsuit filed in November 2018. She claimed that the company required their workers to perform closing duties without pay and failed to provide employees with the meal and rest breaks they were owed, in violation of labor laws.

Marshalls has not admitted any wrongdoing by settling the wage and hour case against them, but instead has agreed to settle the wage claims to avoid the costs and risks of future litigation against the company. The plaintiffs also agree that the settlement is a “good result” considering the risks associated with continuing litigation.

Other companies have similarly settled, such as Terranea Resort, Sterling Jewelers and Tyco.

California Wage and Hour Laws

All labor laws prohibit employers from forcing their employees to work off the clock. Some states, such as California, also provide the ability for employees to take action against their employers. This can take the form of a wage claim filed with the California Labor Commissioner’s Office or a formal wage and hour class action lawsuit filed in state or federal court.

California has very strict overtime laws which also provide more benefits than other states in the United States. Under California overtime laws, employees are entitled to one and a half times their normal rate of pay for:

• all hours worked over 40 hours in a single week
• hours worked between 8 and 12 hours in a single workday
• the first eight hours worked on the seventh consecutive day of work in a workweek

The state also has unique “double time” laws which state that employees are to be paid double their regular rate of pay for:

• all hours worked over 12 hours in a single workday
• all hours worked over eight hours on the seventh consecutive day of work in a workweek

If employers are found to be guilty of any California wage and hour claims, including failure to pay overtime wages and forcing employees to work off the clock, they may be subject to penalties and damages.

The Marshalls Unpaid Wages Class Action Lawsuits are Case Nos. 5:18-cv-01716 and 2:19-cv-03618 in the U.S. District Court for the Central District of California.

Join a Free California Wage & Hour Class Action Lawsuit Investigation

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

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