Target $4.6M New Jersey Wage and Hour Settlement

Employees worked as an hourly, nonexempt progression team member ]]at any of Target’s New Jersey distribution centers between Aug. 6, 2019, and the date the court grants final approval to the settlement may be eligible to receive a cash payment from a class action settlement.

Target Corp. agreed to pay $4.6 million to resolve a class action lawsuit alleging it failed to pay certain employees for all time worked, including time spent walking before and after shifts at its New Jersey distribution centers.

Who are the class members?

Class members must meet all of the following criteria:

• They worked as a progression team member at any Target distribution center in New Jersey.
• Target employed them at any time from Aug. 6, 2019, through the date of the court’s final approval order.

The settlement administrator used Target’s payroll records to identify eligible class members and determine their payment amount. If an individual received a settlement notice addressed to them, they are a class member.

How much can class members receive?

The total settlement fund is $4,600,000. The settlement administrator will distribute the fund, after deducting attorneys’ fees, service awards and settlement administration costs, to class members on a pro rata basis. Each person’s share is based on their work history as reflected in Target’s payroll records. The more weeks an individual worked as a progression team member during the class period, the larger their share of the settlement.

Each class member’s payment is based on their proportion of total eligible workweeks compared to all class members. For tax purposes, the settlement administrator will treat one-third of each payment as taxable wage income (reported on IRS Form W-2 with required taxes withheld) and the remaining two-thirds as taxable nonwage income (reported on IRS Form 1099 with no taxes withheld).

The calculation is: class member's eligible workweeks / total eligible workweeks for all class members = percentage share. Percentage share x net settlement fund = payment amount.

No claim form needed to receive payment

Class members do not need to submit a claim form to receive payment. The settlement administrator will use Target’s records to determine eligibility and payment amounts and automatically send them after the court grants final approval of the settlement.

Individuals can contact the settlement administrator for any questions or concerns.

Settlement administrator’s contact information: Sadler v. Target, Settlement Administrator, P.O. Box 2715, Portland, OR 97208-2715, 1-888-840-4265

$4.6 million settlement fund breakdown

The $4,600,000 settlement fund covers:

• Settlement administration costs: To be determined
• Attorneys’ fees: Up to $1,533,333.33
• Attorneys' costs expenses: $300,000 (estimated)
• Service award to the named plaintiff: $10,000
• Payments to eligible class members: The remainder of the fund

Important dates

• Deadline for exclusion: Feb. 13, 2026
• Final fairness hearing: Feb. 24, 2026

When is the Sadler v. Target Corp. payout date?

The settlement administrator will issue payments after the court resolves any appeals and grants final approval of the settlement.

Why is there a class action settlement?

The class action lawsuit alleged that Target failed to pay progression team members for all hours worked, including time spent walking before and after shifts at its New Jersey distribution centers.

Target denies any wrongdoing but agreed to settle the case to avoid the uncertainty and expense of further litigation.

Sources

1. Class notice
2. Settlement agreement
3. Settlement FAQ