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$2.5M Settlement Reached in REI Unpaid Overtime Class Action

This is a settlement for the Employment lawsuit.

Los Angeles, CA: Preliminary approval of a $2.5 million settlement in an unpaid overtime class action lawsuit pending against Recreational Equipment Inc. has been granted. The lawsuit, brought by former employees in California, alleged the sporting goods retailer did not pay overtime or minimum wage.

Named plaintiffs Alison Macias and Justin Quan represent some 5,000 former REI employees, who will share in the $1.73 net settlement fund. According to the terms of the agreement, monies will be allocated on a pro-rata basis as per the number of days each class member worked during the class period. Macias and Quan will each receive $5,000 for their services on behalf of the settlement class.

The settlement class includes all individuals employed in California by any of the released parties in a California REI store in an hourly, non-exempt position at any time between Nov. 21, 2009, and Oct. 31, 2014.

Macias and Quan filed the lawsuit in November 2013, alleging the company failed to pay minimum and overtime wages, off-the-clock work for bag checks, and meal and rest period premiums, and failed to reimburse business expenses.

The settlement fully resolves all of the claims and awaits final approval. According to the motion, REI acknowledges that it modified the format of its wage statements in response to the litigation and has agreed to remind store management that security checks should be conducted quickly and efficiently.

The case is Macias et al. v. Recreational Equipment Inc., case number 5:14-cv-00300, in the U.S. District Court for the Northern District of California.

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Published on May-7-15


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