Overview of class action lawsuits in employment law:
- WHO: Employees recently filed class action lawsuits against FedEx, Red Lobster, JPMorgan Chase and Subway. Walmart also recently agreed to a class action settlement agreement.
- Why: The class action lawsuits and settlements concerned employment law claims.
- Where: The class action lawsuits were filed in U.S. federal courts.
Employees recently filed class action lawsuits against FedEx, Red Lobster, JPMorgan Chase and Subway.
The class action lawsuits accuse the companies of inadequate pay and failure to provide legally required meal and rest breaks.
A federal judge also recently greenlighted a class action settlement ending allegations that Walmart failed to compensate its employees for time spent undergoing COVID-19 screenings before their shifts.
FedEx did not pay its drivers all the overtime they were owed, a class action lawsuit says
Employees have recently filed several class action lawsuits against FedEx because the company claims did not pay his drivers all overtime to which they are entitled.
The class action lawsuits allege that FedEx classified its drivers as independent contractors and therefore denied them fair overtime pay.
The FedEx drivers argue that they should have been classified as employees because they worked full-time for the company while wearing FedEx uniforms and delivering FedEx packages in vehicles bearing the FedEx logo.
The drivers argue that FedEx also controlled their package delivery volume and maintained control over how they worked.
Class action lawsuit claims Red Lobster paid its employees tips below the legal minimum wage
A former Red Lobster employee filed a class action lawsuit against the restaurant in July for allegedly paying tips to its employees. below the statutory minimum wage.
The class action lawsuit argues that Red Lobster required tipped workers to perform untipped work, which resulted in their take-home pay being below the legal minimum wage.
The former employee also alleges that Red Lobster provided incentives to the restaurant’s managers to keep the wages of tipped employees low by offering bonuses based on meeting or exceeding certain wage cost goals.
“The defendant knew or should have known that its policies and practices violated the law, and the defendant did not make a good faith effort to correct the (Fair Labor Standards Act),” says Red Lobster’s class action lawsuit.
JPMorgan Chase failed to provide meals and rest breaks to its employees, class action lawsuit says
A former JPMorgan Chase employee filed a class action lawsuit against the bank last month, claiming it violated labor laws by his employees no with legally prescribed meal and rest breaks.
The class action lawsuit argues that Chase regularly assigned the former employee too much work and routinely made her work overtime and during lunch breaks without pay.
The former employee argues that Chase also failed to reimburse its employees for all business expenses, failed to provide them with accurate written pay stubs, and failed to pay them all wages due when they were terminated, all of which violate California labor law.
Subway failed to pay non-exempt employees the fair minimum wage and overtime; class action lawsuit demands
A former employee filed a class action lawsuit against Subway in July, claiming the restaurant failed to pay fair minimum wage and overtime pay to non-exempt employees who worked more than 40 hours. during a working week.
The class action lawsuit argues that Subway was obligated to pay its non-exempt employees a wage equal to half of their regular hourly rate for each hour worked in excess of 40 hours per week, but failed to do so.
“As a result of these practices, Plaintiff is entitled to lost wages and damages for unpaid overtime,” Subway’s class action lawsuit states.
Walmart settles allegations that it did not compensate its employees for COVID-19 screenings
A federal judge in Arizona has given final approval to a class action lawsuit that settles a claim that Walmart failed to compensate its employees for waiting for COVID-19 screenings. before starting their shifts.
The judge concluded that the amount of compensation for the class action members was “substantial.”
“Walmart does not pay these employees for the time the company requires of them,” Walmart’s class action lawsuit states. “As a result, Walmart unjustly enriches itself at the expense of its workers.”
Under the settlement, class members are entitled to a payment equal to approximately 50% of their potential claim, based on the length of their employment at Walmart in Arizona between April 10, 2020, and February 28, 2022.
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