Target warehouse employees have agreed to a $4.6 million settlement after a lawsuit was filed for additional pay for time spent moving around the warehouse. The lawsuit was filed on behalf of employees of multiple Target warehouses located in New Jersey, and it asserted that employees should be compensated for the time that was spent walking to pre- and post-shift activities.
The Target workers’ “walking time” wage claims are a bold step forward for warehouse workers across the board, as this could insulate future claims at other operations where workers are not sufficiently compensated for time spent “on the job.” Target’s NJ wage settlement is of particular importance to the company’s other workers, as a similar lawsuit is being fought in New York as well.
A Target employee lawsuit filed for wage claims for off-the-clock walking ends in a $4.6 million settlement, setting an interesting precedent in the region. (Image: Pexels)
Why Did the Target Employees File a Lawsuit? Understanding the Claims of Unpaid Walk Time
The Target NJ wage settlement was preceded by a lawsuit that alleged that employees were required to walk long distances to and from their assigned workstations, where they were required to undergo mandatory pre-shift security screens before they could clock in. Employees also had to clock out first and then walk the same distance for post-shift screenings.
This allegedly left them walking significant distances within the building, without any compensation for the time spent restricted within the premises. The three distribution centers in New Jersey reportedly span over 2 million square feet. Due to the expansive nature of the warehouses, workers felt they spent a significant amount of time walking, and they demanded that this walking time should also contribute to the “hours worked” when calculating pay.
Target Rejects Claims of Pre- and Post-Shift Pay for Workers
In response to the Target employees’ lawsuit, the company reportedly denied the allegations that stated that the walking time was compensable. However, it did leave the workers with a peace offering in the form of a $4.6 million settlement. The terms of the settlement will now have to be approved by the court.
The retail giant has faced similar resistance from workers in New York, with a lawsuit filed in August by hourly workers at Target warehouses in Wilton and Amsterdam. The workers allege that after completing the security check-ins, they are required to walk up to half a mile to their departments and workstations, and similarly face a delay after they clock out and walk back to swipe out of work.
Who Benefits from the Target Settlement on Warehouse Walking?
The Sadler v. Target Corp. class action lawsuit was reportedly filed by an hourly warehouse worker at a facility in Bridgeport, who stated that Target was in violation of the New Jersey Wage and Hour Law. The lawsuit referred to previous legal cases where such time spent in transition was found to be compensable, indicating that similar provisions should be provided for the warehouse workers at Target.
The claim covers “All current and former employees of Target who were employed as hourly, non-exempt workers at any of Target’s New Jersey warehouses at any time from November 30, 2016, through the date of final judgment in this matter.” As a result, former Target employees at the distribution centers in New Jersey can also seek a share of the $4.6 million settlement if approved by the court.
The Target Employees’ Lawsuit Is a Good Reminder to Revisit State Employment Regulations
While Target conceded to settle the walking time wage claims, it’s unclear how the matter would have played out through extended court procedures. The federal Fair Labor Standards Act (FLSA) is typically used to determine the outcome of such cases, and the US Supreme Court previously indicated that companies did not have to provide compensation for time spent on such screening tasks.
However, given that state laws also have a role to play in the matter, the outcomes could be very different from region to region. In this particular case, New Jersey law does make accommodations for employees to be compensated for the time employees are required to spend at their place of work. Understanding and respecting state regulations is just as integral to HR and their employee management responsibilities as federal laws are.
Businesses that operate across state borders or internationally have an additional responsibility of evaluating the local regulations to understand what is owed to employees, whether in terms of benefits, pay, or any other operational criteria. Target filed to dismiss the New York-based lawsuit, and it’s possible that the outcomes of the case could be quite different from Target’s NJ wage settlement. We’ll have to wait to see how the cases play out, as the results could lead to very significant outcomes for future litigations in these regions.
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