Walgreen Co. $950,000 Employee Clothing Settlement

Walgreen Co. and Walgreen Pharmacy Services Midwest LLC

Nonexempt Walgreens employees who worked in a Walgreens retail store or pharmacy in California and purchased clothing items at their own expense from one of Walgreens’ third-party clothing vendors between May 31, 2018, and July 8, 2025, may qualify to claim a payment from a class action settlement.

Walgreen Co. and Walgreen Pharmacy Services Midwest LLC agreed to pay $950,000 to resolve a class action lawsuit alleging violations of California labor laws related to unreimbursed business expenses for required clothing purchases.

Who are the class members?

Class members must meet the following criteria:

They worked as a nonexempt employee at a Walgreens or Walgreen Pharmacy Services Midwest LLC retail store or pharmacy in California.
They purchased clothing items at their own expense from one of Walgreens’ third-party clothing vendors.
Their purchase(s) occurred between May 31, 2018, and July 8, 2025.

There are two primary groups included in this settlement:

Class members: All current and former nonexempt employees who made qualifying clothing purchases during the class period (May 31, 2018, to July 8, 2025)
Aggrieved employees: All current and former nonexempt employees who made qualifying clothing purchases during the Private Attorneys General Act period (March 16, 2021, to July 8, 2025)

The settlement administrator will use Walgreens’ third-party vendor records to identify eligible individuals and their total clothing purchases. Those who received a notice did so because records indicate they may qualify as a class member or aggrieved employee.

How much is the Walgreens payout?

Pro rata payment: The total settlement fund is $950,000. After deductions for attorneys’ fees, costs, administrative expenses, service awards and a payment to the California Labor & Workforce Development Agency, the estimated net settlement amount available to class members and aggrieved employees is $473,334.

Payments are distributed as follows:

Each class member receives a pro rata share of the net settlement amount based on their total qualifying clothing purchases.
The net settlement amount is divided into two parts:

Net Private Attorneys General Act settlement amount: $25,000 (for PAGA claims)
Net class settlement amount: Approximately $448,334 (the remainder after PAGA allocation)

The payout rate is calculated by dividing the net class settlement amount by the total qualifying clothing purchases. Each class member’s payment is then their total qualifying purchases multiplied by this payout rate. Class members may qualify for both payments. The settlement administrator will handle all calculations and distributions. Payments are considered non-taxable, and a Form 1099 will be issued.

No claim form needed to receive payment

Class members do not need to file a claim to receive their payment. Class members and/or aggrieved employees will automatically receive a settlement check unless they choose to exclude themselves from the class portion of the settlement. Aggrieved employees will receive their PAGA allocation payment regardless of whether they opt out of the class settlement.

Settlement administrator’s mailing address: Naro v. Walgreen Co. c/o Atticus Administration, P.O. Box 64053 St. Paul, MN 55164

Payout options

Settlement payments will be issued by check and mailed to eligible class members and aggrieved employees.

$950,000 clothing purchase settlement fund breakdown

The $950,000 settlement fund covers:

Settlement administration costs: Approximately $45,000
Attorneys’ fees: Up to $316,666
Attorneys’ costs: Up to $20,000
Service awards to class representatives: Up to $10,000 each ($20,000 total)
Payment to California Labor & Workforce Development Agency: $75,000
Net settlement amount for eligible class members and aggrieved employees: Estimated $473,334

Important dates

Exclusion deadline: Sept. 29, 2025
Final approval hearing: Jan. 8, 2026

When is the Naro v. Walgreen Co. payout date?

Payments will be distributed approximately 32 to 56 days after the court grants final approval and any appeals are resolved.

Why did this class action settlement happen?

The lawsuit alleged Walgreens failed to reimburse nonexempt employees in California for business expenses related to required clothing purchases from third-party vendors. The plaintiffs claimed this violated California Labor Code Section 2802 and the California Business and Professions Code. The case also sought penalties under the Private Attorneys General Act.

Walgreens denied all claims and did not admit wrongdoing. Both sides agreed to settle to avoid the risks and costs of continued litigation.