$7.5M Settles Ikea Class Action Wage and Hour Suit
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In recent news, Ikea agreed to pay $7.5 million to settle a class action lawsuit alleging violations of California labor laws.
All the Details on the Case: Cahilig et al v. Ikea U.S. Retail, LLC
Case Number: 19-cv-01182
The Plaintiff in the Case: Cahilig
Defendant: Ikea U.S. Retail, LLC
The History of the Case: Cahilig et al v. Ikea U.S. Retail, LLC
The class action lawsuit alleged that Ikea violated California labor laws by failing to provide employees with paid rest breaks. Plaintiffs in the case also claimed that Ikea’s written rest period policy violated California labor law because the policy required that Ikea employees stay on site during their paid rest periods. Ikea employees were also allegedly required to take their breaks in the Staff Cafe or other specified non-work areas on site.
What Determines the Rest Break Violation in Cahilig et al v. Ikea U.S. Retail, LLC
The California Supreme Court reaffirmed that to fulfill labor law requirements, California employers must relinquish control over how their employees spend their time during rest breaks and meal periods.
Plaintiff in the Case Made Additional Allegations:
In addition to citing rest period violations, plaintiffs in the case claim that Ikea failed to provide wages owed to their employees in a timely manner along with accurate wage statements.
Judge Gives Settlement Preliminary Approval:
On June 17, 2020, a federal judge gave the proposed settlement agreement preliminary approval. Ikea agreed to pay $7.5 million to settle the class action lawsuit.
The Class Action and the Settlement:
In Cahilig et al v. Ikea U.S. Retail, LLC, 6.400 class members will receive 75% of the full settlement amount. The remaining funds will go toward attorneys’ fees and associated costs.
If you need to discuss California labor law violations in the workplace or if you need to file a California wage and hour lawsuit, please get in touch with Blumenthal Nordrehaug Bhowmik DeBlouw LLP. Experienced employment law attorneys are ready to assist you in any one of various law firm offices located in San Diego, San Francisco, Sacramento, Los Angeles, Riverside, and Chicago.
