$1.75M Settlement to Resolve Ulta Off-The-Clock Work Claims

In recent news, Ulta agreed to a $1.75 million settlement to resolve four class-action suits claiming multiple California wage and hour law violations.

Tellez, et al. v. Ulta Salon, Cosmetics & Fragrance Inc.:

The case, Tellez, et al. v. Ulta Salon, Cosmetics & Fragrance Inc., No. 18-cv-2480 (S.D. Cali. February 10, 2020), included claims that Ulta required employees to undergo security checks and other job duties off the clock. Ulta allegedly did not provide non-exempt employees with timely meal or rest breaks as mandated by employment law. Plaintiffs in the case claim unpaid overtime, unpaid minimum wage, failure to provide mandated meal breaks and rest periods, failure to provide employees with timely wages, failure to provide detailed wage statements, and failure to reimburse for business expenses. The federal trial judge signed off on the settlement agreement on February 10, 2020. 

The Settlement Agreement: Tellez et al. v. Ulta 

The settlement agreement proposed to settle the case between Tellez and Ulta Cosmetics will cover 23, 767 class members. The settlement would result in an average estimated payment of $44.38. The most substantial single amount to a class member in the case would total $222.45. 

Other Employers Called to Task for Off-the-Clock Work: 

Ulta Cosmetics is not the only large employer to face legal trouble after allegedly requiring employees to complete “off-the-clock” work. Big Lots Stores agreed to a $7 million settlement in late 2019 to resolve a post-shift waiting time class action lawsuit with a class of 31,500 employees (former and current). Claims made against Big Lots included unpaid, but mandatory security screens when leaving work. Non-exempt employees are entitled to pay for all hours worked under the federal Fair Labor Standards Act (FLSA). Pre-shift and post-shift duties are sometimes considered “work time” by the U.S. Department of Labor and sometimes not. 

Defining What is Compensable According to Employment Law: 

Courts often face the issue of what is compensable and what is not compensable. In 2014, the U.S. Supreme Court concluded that to be considered compensable time, tasks must be “principal activities” that are indispensable and integral to the employee’s job. Earlier this month, the 10th Circuit ruled that a prison officer’s pre-shift and post-shift tasks qualify as compensable. Included in the “tasks” deemed compensable were pre-shift briefings and security screenings. The tasks were deemed eligible under FLSA because they were integral and indispensable parts of the principal activities the officer was hired to perform. 

Employers across the nation have paid millions to resolve similar wage and hour lawsuits. PNC Bank paid a $2.75 million settlement to resolve allegations of employment law violations springing from off-the-clock work. CorePower Yoga settled an off-the-clock lawsuit with a $1.5 million settlement.

If you are required to perform off-the-clock work, or you need to file an employment law lawsuit, we can help. Contact Blumenthal Nordrehaug Bhowmik DeBlouw LLP. Experienced employment law attorneys are ready to assist you in any one of various law firm offices located in San Diego, San Francisco, Sacramento, Los Angeles, Riverside, and Chicago.