KFC to Settle Wage and Hour Class Action for $3.55 Million
KFC has agreed to pay $3.55 million to settle a class action wage and hour lawsuit alleging, amongst other things, that KFC failed to provide all meal and rest breaks to employees and failed to compensate them for work performed off the clock in violation of California labor laws. The settlement will compensate 13,000 current and former KFC employees employed at California locations since October 2005.
California law provides that employees who work a period of more than five hours are entitled to a meal period of at least 30 minutes. If an employee works for more than five hours without an uninterrupted meal period, the employer is required to compensate the employee one additional hour of pay at the employee’s regular rate of pay. Additionally, employers in California are required to provide employees with a paid 10-minute rest period for every four hours worked.
KFC maintains a uniform policy across all of its locations that require employees to request permission from a manager before being able to take any breaks. Plaintiffs claimed that managers often denied break periods when the restaurants were too busy.
In addition, KFC had a policy requiring all employees working the closing shift to clock out when the store closed so that sales information could be transferred from the registers to KFC’s main computer. This process prevented employees from clocking out at the end of the day and required the manager on duty to estimate the shift end time for each employee. Plaintiffs alleged that this resulted in inaccurate clock-out times and not being compensated for performing work-related duties while off the clock.
The class settlement is set for final approval in January 2013.
If you feel you have not been denied meal and rest periods or not compensated for all time worked, please contact Khorrami, LLP for a private consultation.