She also claimed that Lane Bryant’s understaffing policies resulted in employees missing uninterrupted 30-minute meal breaks, as there was often no one available to relieve them from their duties.
These practices, Cole argued, caused employees to work uncompensated time, pushing their effective wages below the state’s minimum wage requirements.
Settlement Rejected Amid Broader Scrutiny
The proposed settlement, which the parties submitted for approval in October, aimed to compensate approximately 1,435 workers, offering an average payout of about $470 per person.
But with the California Labor and Workforce Development Agency (LWDA) remaining silent on the deal, Judge Pitts found that the parties failed to justify why such a low-value settlement should be approved.
The judge suggested that settlements falling below 1% of a PAGA claim’s potential value are only approved in special circumstances, such as when non-monetary relief is included—something this agreement lacked.
What’s Next for Lane Bryant?
With the deal now rejected, Lane Bryant faces continued legal battles over its alleged wage and hour violations. The case, which was removed to federal court in 2022, remains unresolved, and the retailer may have to negotiate a new, more substantial settlement or fight the claims in court.
