Luxury retailer Burberry has agreed to a $2.54 million settlement with employees. The workers include retail store and warehouse employees in New York. Their class action lawsuit claimed that they were forced to put in extra hours without pay. This expensive lesson serves as a reminder to all employers that they need to be aware of wage and hour laws and related practices.
Burberry employees filed the lawsuit in December 2015 after they say that they were routinely forced to work off the clock. Sometimes, the duties were performed before or after shifts, with employees filling out necessary paperwork or cleaning the store. On other occasions, employees were told that they would need to work through their lunch hour. Holiday seasons were particularly bad. Sales associates involved in the lawsuit claim that they frequently worked three to six extra hours a day without being paid for their time.
Like many similar cases, legal experts familiar with this lawsuit note that they do not believe that executive management at Burberry was directing lower level management to violate wage and hour laws. Instead, they believe that the lower level managers were simply trying to cover the needs of the organization without fully understanding the consequences of their actions or that they were violating the law.
Burberry has now agreed to a settlement that should put approximately $2,500 into the pockets of the 643 workers who were involved in the lawsuit. The $2,500 per worker is after attorneys’ fees and costs. For a big-name, luxury brand like Burberry, $2.54 million isn’t necessarily a devastating amount of money to have to redirect for a lawsuit settlement. Lawyers for the company likely made a wise decision when they agreed to a settlement that kept them outside of the courtroom where the outcome may have been a great deal more expensive, especially with court costs and attorney fees. Still, it would have been better if the situation had not occurred in the first place.
It is vital for companies to work closely with employment law attorneys who are looking out for their best interests. This is the most reliable method for avoiding wage and hour lawsuits.