Dynamic Accident Lawyers: Old Navy to Pay $3.5M in Wage & Hour Class Action Settlement

Old Navy has agreed to pay $3.5 million in order to settle allegations that the clothing retailer shorted employees on overtime wages as well as caused them to miss rest and meal breaks by under-staffing stores.

Los Angeles Superior Court Judge Amy D. Hogue stated that she would approve the wage and hour class action lawsuit settlement if Old Navy would revise the wording on a Section 1542 waiver, which asks Class Members to release “all claims known or unknown.”

“For a long time I was accepting that language and it bothered me, and now I don’t accept 1542 waivers,” Hogue said. “I’m pretty stuck on the idea that it ought to be drafted differently.”

Old Navy attorneys informed Judge Hogue that they would remove the current wording and make the clause more specific. Hogue said she would sign-off on the revised settlement agreement.

The Old Navy wage and hour class action settlement is expected to reimburse 26,000 hourly, nonexempt employees throughout the State of California. On average, Old Navy workers should receive $80 from the settlement.

In addition, Old Navy also agreed to clarify its policy on after-shift security bag checks. This change in policy occurred during the litigation process. Old Navy employees now undergo checks while they are still working.

Plaintiff Andre Wells filed the Old Navy lawsuit in 2012 over allegations that the company violated wage and hour laws. Over the course of the next few years, Class representatives were added and the plaintiffs filed a motion for Class certification in January 2015.

According to the Old Navy class action lawsuit, the retailer doesn’t have enough staff to adequately take care of the customers in the stores which forces employees to skip rest and meal breaks. The plaintiffs further claimed that Old Navy doesn’t reimburse workers for business expenses and shorts them on overtime wages.

While the motion for class certification was still pending, the parties were able to agree to a settlement which was approved yesterday.

More information about the Old Navy class action lawsuit settlement was not immediately available. Keep checking TopClassActions.com or sign up for our free newsletter for the latest updates. You can also mark this article as a “Favorite” using your free Top Class Actions account to receive notifications when this article is updated.

The plaintiffs are represented by Robert J. Drexler Jr., San Karas, Jonathan Lee and Eduardo Santos of Capstone Law APC.

The Old Navy Wage and Hour Class Action Lawsuit Settlement is Andre Wells et al. v. Old Navy LLC et al., Case No. BC491953 in the Superior Court of the State of California for the County of Los Angeles.

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