Fresh & Easy Didn’t Pay PTO, Alleges Class Action Lawsuit

A class action filed on Feb 17 alleges that the grocery store chain Fresh & Easy LLC did not pay employees for their accrued paid time off (PTO).

Fresh & Easy operated grocery stores in California, Arizona, and Nevada, before closing its stores and filing for bankruptcy in October of 2015. As part of that process, it notified its workers that their employment would be terminated, and that only employees in California would be paid for their accrued paid time off, the class action complaint alleges.

Plaintiff Darlene Lewis states that she was an hourly employee at a Fresh & Easy grocery store in Las Vegas, Nevada. Lewis claims that she received notice in October of 2015 that her job would be over on Nov. 13, 2015. In that same termination letter, Lewis discovered that Fresh & Easy would not pay her for the more than 60 hours of paid time off she had built up while working for the company.

According to the class action complaint, the letter from Fresh & Easy stated that: “As per the Company’s current policy and practice, accrued and unused PTO will be paid out for California employees only (including those on LOA) by 10/30/2015. Accrued and unused PTO will not be paid out in Arizona and Nevada at this time.”

The Fresh & Easy class action lawsuit argues that not paying all employees’ paid time off is in violation of the company’s employee manual, which promised that “Regardless of the reason for termination, you will not forfeit any accrued and unused Paid Time Off.” The employee manual continued, “Accordingly, at the end of employment, team members will be paid for any accrued and unused PTO.” The class action alleges that Fresh & Easy breached its contract with its Nevada and Arizona employees.

Fresh & Easy not compensating its terminated employees for paid time off is also in violation of Nevada and Arizona wage and hour laws, according to the class action. “By failing to pay Plaintiff and Class Members their accrued PTO upon their separation from employment, Defendants has failed to timely remit all wages and benefits due and owing to Plaintiff and Class Members,” the complaint claims.

The Fresh & Easy class action lawsuit seeks to represent a Class of “All persons employed by [Fresh & Easy] on or after October 30, 2015 in Arizona or Nevada who did not receive their accrued Paid Time Off (PTO) upon separation from employment.” The class action is asking for those unpaid wages, as well as interest and penalties on those unpaid wages, under Nevada and Arizona law. Because Fresh & Easy is in bankruptcy, the class action also seeks a determination on what priority level its claims will be paid by the remaining assets and funds of the company.

Plaintiff Darlene Lewis is represented by Edward J. Kosmowski of the Law Office of Edward J. Kosmowski, LLC, and Mark R. Thierman, Joshua D. Buck, and Leah L. Jones of Thierman Buck LLP.

The Fresh & Easy Paid Time Off Class Action Lawsuit is Darlene Lewis v. Fresh & Easy LLC, Case No. 15-12220, in the U.S. Bankruptcy Court for the District of Delaware.

UPDATE: On Mar. 3, 2016, a bankruptcy judge in Delaware denied class certification to a group of employees who were laid off from Fresh & Easy following the company’s bankruptcy.

Join a Free California Overtime, Wage & Hour Class Action Lawsuit Investigation

If you were forced to work off the clock or without overtime pay in California within the past 2 to 3 years, you have rights – and you don’t have to take on the company alone.

Get a Free Case Evaluation Now