After more than a decade of courtroom drama that stretched from federal benches to the highest court in Washington state, Xerox Corp. has agreed to pay $9.1 million to settle a sprawling wage-and-hour lawsuit involving over 5,700 call center workers. The resolution brings a curtain down on a rare and lengthy dispute over the company’s Achievement Based Compensation (ABC) plan, which plaintiffs argued ran afoul of state minimum wage laws.
The preliminary approval request, filed Friday in Washington federal court, describes the deal as a strategic move to avoid the mounting risks and costs of further litigation and appeals.
“This settlement is an excellent result given the risks of continuing to litigate through trial and appeals,” the workers’ attorneys emphasized.
The Anatomy of the Settlement
The proposed agreement divides the class into two groups:
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4,771 workers who remained active in the litigation
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965 workers previously dismissed in February 2024 after Xerox secured a summary judgment win in a related case
Despite their dismissal, the second group will still receive 10% of the net settlement amount, while the primary class takes 90%.
