Apple Loses Labor Code Violation Lawsuit and Will Pay Out $2 Million

A long-running class action lawsuit between Apple and employees of its retail stores in California came to a quick conclusion last week. The lawsuit, originally filed in 2011 and elevated to class action status in 2014, involves Apple retail and corporate employees who worked for Apple between 2007 and 2012. The trial was to continue this week for corporate employees, as the jury verdict only applies to retail employees, according to a tipster. 

The suit alleged that Apple failed to give employees adequate breaks, failed to pay wages in a timely manner after employees left the company and failed to provide accurate wage statements. The case finally went to court in San Diego back in October, and a jury has now ordered Apple to pay out $2 million in restitution. Apple can now appeal the case before a higher court.

California Labor Code dictates that employees must be provided with at least a 30-minute meal break when the work period is more than five hours, and at least a 10-minute rest break for every four hours worked. The defendants claimed Apple failed to always provide these breaks for at least four years prior to the lawsuit. 

The settlement works out to about $95 per employee included in the class, and $2 million is a tiny fraction of the $42.4 billion Apple pulled in during Q3 alone. For its part, Apple claimed it has offered adequate breaks in accordance with California Labor Code for years before the lawsuit was filed. The company has not yet commented on today’s settlement, but the employees who were denied breaks while helping customers pick out new iPhones and iPhones will see their cash as soon as the lawyers get their cut.

California Labor Code dictates that employees must be provided with at least a 30-minute meal break when the work period is more than five hours, and at least a 10-minute rest break for every four hours worked. The defendants claimed Apple failed to always provide these breaks for at least four years prior to the lawsuit. 

Such violations of California Labor Code also happened to large enterprises in the past: In 2013, Starbucks agreed to pay $3 million to resolve a class action lawsuit accusing the company of several wage and hour violations. In 2014, FedEx agreed to pay a $2.1 million settlement to resolve a class action lawsuit about failing to provide proper meal and rest breaks. For employers in California, to avoid such lawsuits and compensation, it’s highly essential to keep an eye on labor law compliance and post Federal and California labor law posters as required by the government. Updated labor law postings help you stay compliant and minimum unnecessary loss.