In a settlement signaling the end of a high-stakes federal labor dispute, snack giant Kellanova and cereal-maker WK Kellogg Co. will pay nearly $1.5 million to resolve claims they failed to properly compensate thousands of hourly workers for overtime and off-the-clock duties—including COVID-19 temperature screenings, preshift meetings, and gear changes.
U.S. District Judge Robert J. Jonker gave final approval Tuesday to the deal, calling the outcome “fair and reasonable” in a case rooted in allegations of Fair Labor Standards Act (FLSA) violations.
From Breakfast Bowls to Court Battles
The lawsuit, launched in January 2024 by former employees Damaso Maldonado, Daniel Shepherd, and Donnell Coby, argued that Kellanova and WK Kellogg improperly excluded shift differentials when calculating overtime. The plaintiffs later expanded the case to include unpaid “off-the-clock” work during the pandemic and beyond.
The companies will now pay $1.475 million to settle the claims. The settlement includes roughly 11,000 current and former hourly workers employed across U.S. facilities (excluding California) between January 30, 2021, and January 27, 2025. Eligible workers can opt in by simply cashing a check.
