Target Reaches $4.6M Settlement With 13,700 Warehouse Workers

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target $4.6m warehouse worker settlement

Retail giant Target Corp. has agreed to a $4.6 million settlement to resolve a class action filed by roughly 13,700 warehouse team members who alleged the company failed to compensate them for time spent walking from facility entrances to time clocks before starting their shifts.

The workers, represented by lead plaintiff Krystal Sadler, filed an unopposed motion on Friday urging a New Jersey federal judge to grant preliminary approval to the settlement — describing it as the fairest and most efficient resolution to a lawsuit that has spanned nearly three years.

The Case Behind the Settlement

The case began in November 2022, when Sadler first sued Target in state court, accusing the retailer of violating New Jersey wage and hour laws. Target moved the case to federal court in January 2023, where class certification was later granted in January 2025.

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According to court filings, the workers claimed Target required them to spend several minutes daily walking from the warehouse entrances to their time clocks — time they said was essential to their job duties and thus compensable.

The proposed settlement covers all “progression team” members employed at Target’s New Jersey distribution centers since August 6, 2019.