Trader Joe’s Agrees to Pay $12.47M to Settle Wage and Hour Dispute
Trader Joe’s has agreed to pay $12.47 million to settle a proposed class action lawsuit alleging violations of California’s wage and hour laws.
According to the complaint, Trader Joe’s:
- Rounded time punches, resulting in employees being underpaid
- Excluded “Thank You” pay from overtime calculations
- Failed to provide required meal and rest breaks
- Failed to pay required overtime, minimum wages and sick pay
- Issued inaccurate wage statements
- Did not reimburse employees for business expenses, and
- Did not pay wages on time during employment and at termination.
Trader Joe’s denies wrongdoing and said it agreed to settle to avoid continued litigation.
The court is scheduled to consider final approval of the settlement on April 22, 2027.
Takeaways for wage and hour compliance:
- Review timekeeping and rounding rules to ensure employees are paid for all time worked
- Verify that overtime calculations include all required forms of compensation, and
- Regularly audit wage statements, expense reimbursements and final-pay procedures.
More info: Bartlett v. Trader Joe’s Settlement Agreement
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