Former Nike Retail Employee Alleges California Labor Violations

Nike Retail Service Inc. is facing a potential class action California wage and hour lawsuit from employees who alleged the company should have reimbursed them for the uniforms the employees were forced to pay for.

The employees allege they were required to buy Nike branded clothing with their own money and that the company never compensated them for these occupational expenses.

The California wage and hour lawsuit alleges the company committed California labor violations, as state employment laws require companies to compensate for uniform costs.

Allegations of Nike California Labor Violations

Lead plaintiff Omran Hamid is filing in the potential class action California wage and hour lawsuit, alleging the company illegally collected receipts of wages due and committed other California labor violations. Hamid says he worked for a Nike retail location in San Clemente from October 2015 to January 2017.

Among other alleged California labor violations, the Nike class action lawsuit states that the company ordered employees to pay for uniforms and did not pay for sick leave. In addition, the California wage and hour lawsuit alleges the company failed to provide itemized wage statements.

“Plaintiffs are minimum wage earners, yet, are required to purchase the uniforms an average of four times a year and on an ongoing basis and pay taxation on their value,” the California wage and hour lawsuit states.

Hamid’s California wage and hour lawsuit alleged that employees had to wear Nike apparel, and “were required to maintain and current apparel of each seasons’ product line.” Essentially, employees were “manipulated” to become living mannequins and advertisements for the store to convince customers to buy the apparel.

Hamid also alleges Nike required him and other employees to pay income tax on approximately 50% of the uniforms’ retail value that the company also failed to reimburse.

Nike tried to have the California wage and hour lawsuit dismissed, arguing that the claim failed to specific a cause of action and that the plaintiff failed to comply with established procedures. The company also argues that Hamid failed to reasonably try to mitigate the damages.

Hamid’s lawsuit is seeking to represent all current and former nonexempt employees who worked as sales associates at Nike retail stores in California in the past four years.

This California Wage and Hour Lawsuit is Omran Hamid v. Nike Retail Services Inc., Case No. 8:17-cv-00600, in the U.S. District Court for the Central District of California.

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