Dollar Tree Employee Lawsuit Reaches $2.5M Settlement

Plaintiffs in a Dollar Tree employee lawsuit have requested approval for a $2.5 million settlement to end the suit, according to Law360. Plaintiffs allege that Dollar Tree distribution centers committed wage violations including not allowing employees proper break and rest periods. The plaintiff class includes anyone who worked at a Dollar Tree distribution center between April 2011 and the end of 2019.

Dollar Tree Employee Arbitration Agreements

According to Law360, Plaintiff Terry Snipes brought his claim against Dollar Tree Distribution Inc. in April 2015. The suit and class membership have been complicated by Dollar Tree’s employee arbitration program.

Lead plaintiff Terry Snipes opted out of this program before filing his suit. In May, U.S. District Judge Morrison England was asked by Dollar Tree to enforce arbitration measures signed by about 1,600 employees after the October 6, 2014 cutoff.

The judge forced the claims into arbitration and dismissed claims made by employees who signed arbitration pacts after the Oct. cutoff under the California Private Attorneys General Act. However, these 1,600 employees are still eligible to access the Dollar Tree employee lawsuit settlement.

The workers said in Friday’s preliminary settlement motion, “While certain of the settlement class members agreed to arbitrate their claims with defendant on an individual basis, defendant agrees, for purposes of settlement only, that the claims of such settlement class members are typical of plaintiffs’ claims.” 

The Dollar Tree Employee Lawsuit Settlement

In the Dollar Tree employee lawsuit, plaintiffs alleged that Dollar Tree’s labor and wage practices are in violation of California law. Workers allege the company failed to give appropriate breaks and maintained poor timekeeping practices.

Negotiations and significant litigation have led to a tentative settlement. The requested settlement of $2.5 million is seen as a big victory for the workers.

The workers said the settlement represents “an outstanding result in light of the strengths and weaknesses in the case. In light of the significant risks involved in this matter the settlement represents an excellent result for the settlement class” in their preliminary settlement motion.

The settlement includes $125,000 to go towards claims filed under the California Private Attorneys General Act with $93,000 of that amount going to the Labor and Workforce Development Agency. Another $750,000 will go towards attorney fees, according to Law360. The roughly 2,400 class members of the settlement will receive an average of $625 each. Any uncashed settlement checks are meant to be sent to the Veterans Legal Institute.

Dollar Tree’s History of Employee Mistreatment

Good Jobs First estimates that Dollar Tree and its divisions have committed 13 wage and labor violations since 2000 resulting in fines of $65,328,128. This is by far the most costly of Dollar Tree’s violations, but employee discrimination is a close second resulting $45,218,750 in penalties for the company. The Dollar Tree employee lawsuit is only the tip of the iceberg of Dollar Tree’s alleged violations.

The U.S. Department of Labor also reports that a Dollar Tree in Pennsylvania put employees in danger by blocking emergency exits, failing to secure dangerous materials, failing to maintain sanitary bathrooms, and improperly storing and maintaining materials such as electric panels.

The U.S. Department of Labor’s Occupational Safety and Health Administration (OSHA) found similar violations at another store in Massachusetts. All told, these two locations racked up more than $800,000 for putting employees in hazardous situations.

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