California, Payroll

Old Navy to Pay $3.5 Million in Wage and Hour Class Action

Every day a new wage and hour class action is filed and/or settled somewhere in the USA. Why is it so hard to just do it right? Do what right, you ask? Well….. all of it. Pay workers a fair wage plus overtime – for starters. Use some reason. If it sounds unfair to the worker, it probably is.

Oldnavy PostOld Navy has agreed to pay $3.5 million to settle charges that they shorted employees on overtime wages as well as deprived them of rest and meal breaks by under-staffing stores. California law requires meal and rest breaks, while many other states have no such requirements. Unfortunately, many employers find themselves in hot water when such laws are taken lightly and employees end up mistreated and shorted on pay. 

The Old Navy wage and hour class action settlement is expected to reimburse 26,000 hourly, nonexempt employees of California stores. On average, Old Navy workers should receive $80 from the settlement. Old Navy also agreed to re-visit its policy on after-shift security bag checks. Old Navy employees now undergo checks while they are still working.

So, there ya’ go. Just another decision supporting the immense need for employers (of all types in all states) to take the laws seriously and get their HR and Payroll employees the tools and training they need to Be Audit-Secure. Spending a few bucks today, will save you potentially hundreds of thousands tomorrow.

Until Next Time, Be Audit-Secure!

Lisa Smith



Lisa Smith is CEO of Andere Seminars, LLC and Chief Content Developer at BeAuditSecure.com. Follow her on Twitter, connect with her on LinkedIn, listen to her Small Business Spoonfuls Podcast, and find more from her in Audit-Secure Authority at BeAuditSecure.com.

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