Trader Joe’s $12.47M Wage and Hour Class Action Settlement

Current and former employees who worked for Trader Joe’s as a crew member, merchant or mate in California between Dec. 4, 2016, and March 31, 2024, may qualify to receive a cash payment from a class action settlement.

Trader Joe’s Co. agreed to pay $12,470,000 to settle a class action lawsuit alleging violations of California wage-and-hour laws, including claims related to time rounding, overtime pay, sick pay, meal and rest breaks, wage statements, business expense reimbursement and timely wage payment.

Who are the class members?

• Class members are individuals whom Trader Joe’s Co. employed as a nonexempt crew member, merchant or mate in California at any time between Dec. 4, 2016, and March 31, 2024.
• There are also two Private Attorneys General Act classes, which include:
• First PAGA period: All individuals who worked in a qualifying position between Dec. 4, 2019, and March 31, 2024
• Second PAGA period: All individuals who worked in a qualifying position between April 1, 2024, and Sept. 5, 2025

How much are settlement payments?

Class members can receive one or more of the following payments:

• Class fund: Eligible class members can receive a pro rata cash payment from the net settlement fund. The settlement administrator will determine the payment amount by the number of workweeks the class member worked as a crew member, merchant or mate during the class period. For mates, each workweek will count as two workweeks.
• First PAGA payment: The settlement administrator will split a $240,000 settlement fund with 25% ($60,000) to qualifying class members members and 75% ($180,000) to the California Labor and Workforce Development Agency. The administrator will determine the payment amount by the number of pay periods the class member worked during the first PAGA period.
• Second PAGA payment: The settlement administrator will split a $470,000 settlement fund with 25% ($117,500) to qualifying class members and 75% ($352,500) to the LWDA. The administrator will determine the payment amount by the number of pay periods the class member worked during the second PAGA period.

The settlement administrator will treat 20% of each class member's class fund payment as wages and report them on a W-2. It will treat the remaining 80% as nonwage income and report it on a 1099.

PAGA payments are not subject to employment tax withholding so the administrator will report it on a 1099.

No claim form required

Class members do not need to file a claim to receive a settlement payment.

Those who wish to challenge their number of workweeks and calculated estimated payments must mail, email or fax a written request, with supporting documentation, to the settlement administrator no later then Oct. 2, 2026.

Settlement administrator's mailing address: Apex Class Action LLC, P.O. Box 54668, Irvine, CA 92619

Settlement administrator's email address: support@apexclassaction.com

Settlement administrator's fax number: 949-989-4428

Settlement administrator's phone number: 800-355-0700

Payout options

• Paper check mailed to the address on file

Settlement fund breakdown

The $12,470,000 settlement fund will include:

• Settlement administration costs: Up to $200,000
• Attorneys' fees: Up to $4,156,666.67
• Attorneys' expenses: Up to $200,000
• Service awards to class representatives: Up to $10,000 each ($60,000 total)
• PAGA LWDA penalties and payments to class members: $710,000
• Class fund payments to class members: Remaining settlement funds

Important dates

• Deadline to opt out: Oct. 2, 2026
• Deadline to dispute workweeks/pay periods: Oct. 2, 2026
• Final approval hearing: April 22, 2027

When is the Trader Joe’s wage-and-hour settlement payout date?

The settlement administrator will issue checks to eligible class members approximately 60 days after the court grants final approval of the settlement.

Why did Trader Joe’s settle this lawsuit?

The class action lawsuit alleged Trader Joe’s failed to pay all required wages due to time rounding, did not include all “thank you” pay in overtime calculations and failed to provide proper meal and rest breaks, accurate wage statements, reimbursements and timely payment of wages.

Trader Joe’s denies the allegations but agreed to settle to avoid the cost and uncertainty of further litigation and a possible trial.

Sources

1. Settlement website
2. Settlement agreement and notice