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$2.8 million will cover Kmart settlement; attorneys are extra

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in Human Resources

Judge Otis Wright II of the U.S. District Court for the Central District of California recently approved a settlement between retailer Kmart and workers who claimed they were not compensated for meal and rest breaks.

Wright approved the $2.8 million agreement and dismissed the case with prejudice.

The settlement requires Kmart to pay another $2 million in attorneys’ fees and approximately $36,000 in litigation costs.

The 11,000-member class consists of nonexempt employees who worked for Kmart between April 2003 and March 2008. The former and current Kmart employees brought the suit in April 2006, claiming that the chain violated the California Labor Code by not compensating them for missed meal and rest breaks or off-the-clock work.

In their suit, the workers argued that Kmart didn’t provide them with accurate itemized pay statements and weren’t paid all wages at discharge.

Final note:
Not sure if your wage-and-hour practices comply with state and federal laws? Consult an attorney. This is an area where professional help is essential.

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