Costco Faces Class Action Lawsuit After Failing to Pay Weekly Wages
Despite labor regulations requiring companies to pay their workers within seven days, Costco failed to do so, resulting in its workers not receiving the full amount of their wages on time, according to a recent class action lawsuit.
Geeta Umadat v. Costco Wholesale Corporation
The class suit was initially filed in New York on August 26, 2021, by lead plaintiff Geeta Umadat, who claims that the company violated New York State Labor Law. Costo compensated by paying her and all other manual laborers on a fortnightly basis rather than the weekly basis required by law. She is seeking statutory damages in connection with the alleged violation.
It claims that in this regard, the defendants failed to pay the plaintiff and all other similarly situated manual workers on time, in violation of New York Labor Law, as stated in the proposed class action.
Costco Allegedly Issue Salaries Fortnightly for Manual Workers
Costco operates around 19 warehouses and stores throughout New York State and employs non-exempt hourly-paid manual workers such as:
- Cashier assistants
- Foodservice assistants
- Bakery wrappers
- Service delivery assistants
- Cake decorators
- Forklift drivers
- Meat cutters
- Receiving clerks
- Tire installers
- Sanitation assistants, and
- Maintenance workers
The company hired Umadat to work in the merchandising department as a non-exempt hourly-paid worker from 1999 until July 12, 2021. She was primarily responsible for sorting, folding, organizing, and displaying merchandise.
According to the claim, over twenty-five percent of Umadat’s duties throughout her employment involved physical tasks, such as bending, lifting, walking, carrying, folding, and standing for long periods of time — indicating that she was a manual worker in the traditional meaning of the term.
Moreover, according to state law, manual workers hired in the State of New York are expected to be paid weekly and no later than seven calendar days following the end of the week wherein the wages are earned.
Umadat, on the other hand, claims that Costco paid her and others on a fortnightly basis in accordance with their payroll rules.
She wishes to represent other New York Costco workers in the lawsuit, which is being brought against the company for alleged violations of New York State Labor Law. She seeks class certification, monetary damages, attorney’s fees, and costs, as well as interest.
Costco’s wage practices and other alleged labor law infractions have put the warehouse store in court on several occasions in the past. In 2012, a former bakery manager filed a class action lawsuit against Costco, alleging that her electronic wage statements had errors regarding her paychecks. Costco sample servers have also accused the company of mislabelling workers as independent contractors when they should be categorized as regular employees.
Editor’s Note on Costco Weekly Wages New York Class Action Lawsuit 2021:
This article is written to inform you of the class action lawsuit against Costco over alleged violations of New York State labor law. The people of Iowa has also filed a class action against Iowa Government concerning their Unemployment Benefits.
Case Name & No.: Geeta Umadat v. Costco Wholesale Corporation, Case No. 2:21-cv-04814-JS-JMW
Jurisdiction: U.S. District Court Eastern District of New York
Products/Services: Labor Laws
Allegations: Costco allegedly paid its manual workers fortnightly instead of a weekly basis, a violation of New York State labor law
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