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Sketchers Settles Wage and Hour Class Action in California

The federal Fair Labor Standards Act (FLSA) exists to protect all employees working in the United States. It mandates things like the minimum wage that workers can be paid, how long they can work before they are entitled to overtime pay, and how much overtime compensation they are entitled to. In addition to the federal law, most states have their own labor laws that govern the employees working in that state. These laws provide their own minimum wage and overtime regulations, but some states include provisions that do not exist in the FLSA.

California, for example, in addition to requiring overtime for all employees who work more than eight hours a day or forty hours a week, also mandates that employers must provide all hourly workers with breaks throughout the day. According to California Labor Laws, for every five hours worked, all hourly employees are entitled to an unpaid, uninterrupted lunch break lasting at least half an hour. For every four hours worked, an employee is entitled to a paid, uninterrupted rest break of at least ten minutes. For every day that one of these breaks is not taken, no matter what the reason, the employee is entitled to a full hour’s wages, in addition to all wages earned that day.

A recent wage and hour class action lawsuit that was filed against Sketchers alleges that the shoe company violated California Labor Laws by withholding wages from its workers. According to Roneshia Sayles, the lead plaintiff who filed the original lawsuit in 2011, Sketchers allegedly failed to compensate employees when they missed meal and rest breaks, failed to pay straight wages, and failed to provide the proper overtime compensation in the event that an employee worked more than eight hours a day or forty hours a week. Under the FLSA (and California Labor Laws), any time that an employee works in excess of eight hours a day or forty hours a week, that employee is entitled to one and one-half times her normal hourly wage for all overtime worked.

Sketchers recently agreed to settle the wage and hour lawsuit with the class of employees for $1.2 million. The settlement still needs approval from a court judge before it can be finalized, but the agreement between the two parties is the first step in bringing the legal dispute to an end. Sketchers denies the claims or that it did anything wrong and settled to end the litigation.

The class of potential class members currently consists of about 4,800 current and former employees of the shoe company. So far, none of the members has opted out of the class or objected to the proposed settlement. All of the class members have been notified of the proposed settlement, and of the 4,800 class members, 1,221 have submitted potentially valid claims. Under the terms of the settlement, between $357,000 and $714 will be paid out to the class. This means that the average share per class member should come out to about $292, with the named plaintiffs each receiving $5,000 as an incentive award for filing the class action lawsuit.The Chicago overtime lawyers at the Chicago Overtime Law Center are investigating unpaid overtime claims against large retail chains such as Apple, Walgreen’s, CVS, Urban Outfitters, GAP, Abercrombie & Fitch, Limited, Forever 21, Macy’s, Target, JC Penney’s, Lowes, Marshalls, TJ Max, Nieman Marcus, Saks Fifth Avenue, Best Buy, Home Depot, Apple, Best Buy, Sears, K Mart, J.C Penney, Walmart and other retail chains for misclassifying employees as managers, erasing or altering time sheets or time records, pressuring workers not to report or record overtime, failing to pay for time spent on security checks, and otherwise failing to pay workers for overtime and other wages. If you are the victim this practice call us at (312) 869-4095 or contact us online.