Nike Bows Down To Class Action Settlement, To Cough Up More Than $8 Million To Cover Fees And Pay Up Employees Affected By Their Bag Inspection Policy
Sports apparel company Nike is entering into an agreement to end the legal complaint filed against them alleging that they have imposed a comprehensive bag check on its employees and staff members each time they leave store premises without paying for the time spent for it.
Nike’s Bag Inspection Policy Allegedly Leaves Negative Impact On Employees
The Nike Bag Check Class Action Lawsuit will result in Nike paying up more than $8 million worth of funds that would be distributed to different Class members represented in the case.
Plaintiff Isaac Rodriguez has filed a legal manifestation to a Californian federal court in relation to the strict bag inspection policy Nike mandates to all of its workers.
Rodriguez attested that Nike has this store policy in place whenever a Nike employee would be clocking out of their respective shifts and leave the store premises.
However, Nike management did not pay employees any overtime pay for the time spent every time an employee undergoes the routine bag inspection before being allowed to leave.
On the other hand, Nike has vehemently denied any wrongdoing and upheld that the said procedure is a part of their security checks and is within the boundaries of the law.
Settlement Details Initial Breakdown
The upcoming settlement agreement is set to conclude years of the legal dispute between Rodriguez and Nike.
Rodriguez first filed the class action lawsuit against Nike in court more than six years ago. He was a former Nike employee in its Gilroy location in California and served there until early 2012.
If approved, Nike is expected to pay up an amount of $8.25 million in settlement funds that would be divided into different fees and costs and amongst the different class members.
It is reported that $3 million would be set aside for different fees and legal counsel expenses.
The remaining amount would then be divided amongst different Nike employees. It is said that the remaining $5.25 million would benefit almost 17,000 hourly-paid Nike workers.
Only those hourly workers that have worked for the company between February 2010 and November 2019 are included in the settlement pool of funds.
Each one is expected to receive payout checks amounting to about $320.
The class action lawsuit initially got struck down in court after Nike’s legal counsel argued that the bag inspections did not last that long and should not then be included in the hourly pay covered by the law.
However, the United States Court of Appeals for the Ninth Circuit overturned the said ruling, paving the way to the further hearing of the legal proceedings that ultimately led to a class action settlement.
Nike management reportedly changed their store policies to accommodate workers’ requests and somewhat to cave into the calls made by the different class action lawsuits filed against them.
Changes include mandating employee bag check to fall in an employee’s on-the-clock activity and providing clear face masks to its employees to provide better help to hard of hearing customers who need to see lip movements to communicate.
About the company
Nike, known officially as Nike, Inc., is an American multinational company known for designing, manufacturing, and selling its wide range of products and services worldwide.
The company is well known for its shoe line, but they also produce other products such as different sports equipment and ready-to-wear apparel.
Editor’s Note on Nike Bag Check Settlement (Rodriguez Settlement):
This news feature aims to provide you the latest updates on the class action settlement involving Nike and their former employees’ complaints of the company’s allegedly comprehensive bag check routines.
Case Name(s) & No.: Isaac Rodriguez v. Nike Retail Services Inc. et al.; Case No. 5:14-cv-01508
Jurisdiction: United States District Court for the Northern District of California
Products/Services Involved: N/A
Allegation(s): Time spent on Nike’s store policy of routinely checking employees’ bags before allowing them to leave the store premises should be compensated based on existing labor standards and laws.
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