Extreme sports retailer Zumiez Inc. said last week it reached a tentative agreement to settle a class-action lawsuit alleging violation of California labor laws for about $1.3 million.
This story first appeared in the July 20, 2009 issue of WWD. Subscribe Today.
Former employee Evan Johnson accused Zumiez of failing to pay him for overtime, not providing meal breaks as required by state law and not providing itemized pay stubs. The suit, filed in March 2008 in Alameda County Superior Court, was subsequently granted class-action status for individuals, excluding store managers, employed by the company between March 5, 2004, and Sept. 13 of this year.
Johnson also alleged that Zumiez didn’t pay fired employees their waiting time penalties as required by state law.
If approved by the court, the settlement would lower earnings by about 3 cents a share, Zumiez said. The Everett, Wash.-based specialty retailer agreed to the settlement “to avoid significant legal fees, other expenses and management time that would have been devoted to protracted litigation,” it said in a regulatory filing with the Securities and Exchange Commission.