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Amazon workers have reached a $13.5 million settlement with the company and Integrity Staffing Solutions Inc. ending a multidistrict litigation that alleged the two companies underpaid workers by not compensating them for security checks.
The Amazon settlement, approved in Kentucky federal court by U.S. District Judge David J. Hale, ends a dispute that first started in 2010.
The multidistrict litigation (MDL) includes 42,253 workers, and as of May 24, approximately 4,200 workers had already submitted a claim with an average amount of $641.73, Law360 reports.
It was unclear how Amazon and Integrity Staffing Solutions would split the payment.
In his approval, Hale said the Amazon employment case had been pending for more than a decade and there had been “significant adversarial motion practice and discovery during that time.”
“It has been to the Supreme Court and back, and more recently to the Sixth Circuit and back.”
Workers first filed the class action lawsuit alleging that Amazon and Integrity Staffing Solutions did not pay them for security checks before and after shifts in 2010. Since then, the case has been to the Ninth Circuit, U.S. Supreme Court, back to the Ninth Circuit, Kentucky federal court, and back to the Sixth Circuit.
Hale said in his decision that without a settlement, there were risks ahead for both parties in regards to time and money.
“Proceeding to trial would entail further risk and expense, with the outcome uncertain—regardless of the strength of their claims, plaintiffs could fail at the certification stage, while defendants could face even greater exposure if the case were to proceed,” Hale wrote.
He added that the fact that the Amazon settlement was reached following mediation “strongly suggests an absence of collusion,” and he approved class counsel’s request of $4.5 million to cover attorney fees, approximately $143,000 to cover litigation costs, and another $130,000 for settlement administration, Law360 reports.
The deal received preliminary approval in February, and the parties requested final approval in mid-May.
Do you have to complete security checks at your place of work? Let us know if you’re compensated for that time in the comments section below!
The Amazon workers are represented by Mark R. Thierman and Joshua D. Buck of Thierman Buck LLP.
Amazon is represented by Joseph A. Nuccio of Morgan Lewis & Bockius LLP.
Integrity is represented by Neil M. Alexander and Rick. D. Roskelley of Littler Mendelson PC.
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3 thoughts onAmazon Workers Reach $13.5M Settlement in MDL Alleging They Were Underpaid
At our facility we go through the scan on our own time. They are so called random checks which if you are hit then you have to go through another one in which you have to take shoes off. That’s every time you leave. It’s ridiculous. 5 minutes every random check. Of course we are not paid, it’s done on our time, which I feel is a bunch of crap.
I worked at Amazon 2011 through 2017 through Integrity Staffing Solutions. The security lines and pre clock in we’re time consuming in addition to the pre break and post break lapses before we could clock in or out. Even trips to AM care, taking to supers were clocked.
when i worked in amazon the security in tracy CA used to harass the women and security dudes really frisking people like they was the police, never brought a gun into work but he sure did get hella close to my nuts like i had a gun coming in, and leaving. harassing