FRESNO — CVS Pharmacy Inc. and about 2,275 current and former warehouse employees reached a settlement recently in their class action overtime pay lawsuit. The warehouse employees claimed CVS failed to compensate them for their “off-the-clock” work when they entered and exited the distribution centers. This failure to pay for “off-the-clock” work allegedly resulted in denied overtime and “reporting-time” pay in violation of the Fair Labor Standards Act (FLSA) and California labor law. The plaintiffs are now requesting preliminary court approval on the $900,000 settlement.
The Warehouse Claim
The CVS warehouse employees in this lawsuit work at the company’s California distribution centers where they shelve and package merchandise and process and ship merchandise orders for CVS retail stores. CVS requires employees wear protective gear while working in the distribution centers. And the company requires post-shift security screenings. Neither of these requirements is unusual for distribution centers. However, the company’s distribution centers have turnstile entrances and exits and the company’s time clock is located in the stockroom.
According to the lawsuit, there were frequently long lines at turnstiles and at the stockroom entrance and the employees had to put on their provided and mandatory protective gear in the locker room prior to going into the stockroom to clock-in. Additionally, employees had to clock out prior to removing their protective gear and post-shift screenings. These lines and donning and doffing of protective gear allegedly amounted to nearly 15 to 20 minutes of unpaid time before a shift and after a meal break, not including the time spent in similar lines after clocking out at the end of a shift for security screening.
Settlement Pay
When parties reach a settlement, the settlement amount is usually the total amount that will be paid. The settlement agreement will specify what amounts go to which individuals and for what reason. For instance, in this case, the CVS warehouse employees in the state class action will receive payouts based on how long they were employed with CVS between October 2008 and July 2014, while those in the FLSA collective action will be paid on the same basis but from July 2009 to July 2014. CVS’s $900,000 settlement will also cover the $7,500 payment of penalties for state violations, $270,000 for attorneys’ fees, and additional payouts of $10,000 and $7,500 for the two named plaintiffs. Because the court must approve the terms of the settlement for fairness, attorneys’ fees and named plaintiff payouts must be reasonable given the situation and are usually restricted to a certain percentage of the total settlement amount.
Employers require protective wear for a number of reasons including safety, health, and manufacturing concerns. However, if your employer requires “off-the-clock” donning and doffing of mandatory protective wear, call our experienced team of overtime pay lawyers today at (855) 754-2795 for a Free Consultation or complete the Free Unpaid Overtime Case Review form and our knowledgeable legal team will evaluate your case. If we accept your case, we will represent you under our No Fee Promise. This means there are no legal fees or costs unless you receive a settlement.