CorePower Yoga Minimum Wage Settlement Set at $1.65 Million

U.S. Magistrate Judge Maria-Elena James gave preliminary approval to a CorePower Yoga minimum wage settlement in mid-February.

The settlement resolves allegations brought by plaintiff William Walsh that the Denver-based fitness chain CorePower Yoga failed to pay minimum wage to some employees, who were forced to purchase discounted studio memberships instead.

A program called Yoga for Trade required yoga class students to work a weekly two- or three-hour shift as a cleaner in exchange for a membership.

In 2013, CorePower Yoga began phasing out the Yoga for Trade program, replacing it with the Studio Experience Team. Former Yoga for Trade students were allowed to become part of this new program.

These team members continued to work their weekly cleaning shifts for an hourly wage, but had to purchase a discounted CorePower membership with much of their earnings. As a result, Walsh claims, the students were making less than the minimum wage under state and federal law, said the plaintiffs.

CorePower Yoga denied any wrongdoing, even though it agreed to a $1.65 million class-action settlement.

In order to approve the CorePower Yoga minimum wage settlement, Judge James conditionally certified a Class of California yoga students who worked under the Yoga for Trade and Studio Experience Team programs. For the plaintiff’s claims under the Fair Labor Standards Act, the judge also certified and an FLSA collective of other Studio Experience Team students.

CorePower Yoga Minimum Wage Settlement Terms

Class Members eligible for a settlement payment include approximately 2,700 California Yoga for Trade students and about 4,900 Studio Experience team students, with some overlap between those two groups.

These groups will receive about 65 percent of the total CorePower Yoga minimum wage settlement amount. For each workweek worked, the California Yoga for Trade students will receive payments of $9.34 and the Studio Experience students will receive $1.17, not including costs and fees.

The rest of the settlement amount is designated for an additional 6,800 Yoga for Trade students outside California who qualify for membership in the plaintiff’s FLSA collective. These collective members will receive $4.60 per workweek worked.

CorePower Yoga still promotes the Studio Experience Team on its website, but the rules have changed. The team members are still responsible for cleaning the facilities, but they have the option to purchase a discounted membership. It is no longer a requirement of employment.

The CorePower Yoga Minimum Wage Settlement case is Walsh v. CorePower Yoga LLC, Case No. 16-cv-05610 in the U.S. District Court for the Northern District of California.

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