A California federal judge on Monday refused to approve a $1.15 million settlement that would have resolved a wage and hour lawsuit against Lane Bryant, ruling that the deal fails to hold the company accountable and undervalues the claims brought under California’s Private Attorneys General Act (PAGA).
The decision by U.S. District Judge P. Casey Pitts puts a halt to an agreement between Lane Bryant and former stylist Shania Cole, who accused the plus-size fashion retailer of violating California labor laws by failing to pay employees all wages owed.
Settlement Falls Short of Legal Requirements
Under California law, employers resolving PAGA claims must pay $200 per affected employee per pay period for each violation. However, the settlement failed to include this heightened penalty, instead allocating just $60,000 to the PAGA claim—an amount Judge Pitts deemed insufficient.
Had the full penalty been applied, the potential value of the PAGA claim would have been significantly higher. Instead, the proposed settlement represents less than 1% of its total value—a figure that courts typically do not approve without compelling justification.
Workers Claim They Were Unpaid for Security Checks and Missed Breaks
Cole, who worked as a nonexempt stylist at a Lane Bryant store in California from June 2021 to June 2022, alleged that the retailer required employees to undergo security checks off the clock, depriving them of rightfully earned wages.
