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A federal judge in Ohio has given an initial nod to a $21 million settlement between The Kroger Co. and nearly 47,000 workers who accused the grocery giant of failing to issue paychecks on time and making erroneous wage deductions due to a payroll system failure.

The long-running legal battle took a pivotal turn Thursday when U.S. District Judge Jeffrey P. Hopkins of the Southern District of Ohio granted preliminary approval of the deal. He also appointed Anderson Alexander PLLC and Barkan Meizlish DeRose Cox LLP as class counsel, signaling a step closer to final resolution.

The lawsuit, led by Kroger delivery driver and warehouse worker Brandon Wilder, claims that a payroll software switch in 2022 resulted in a massive glitch, leaving employees unpaid for hours worked and forcing them to wait weeks for overdue wages.

47,000 Workers Left in the Lurch

At the heart of the dispute is Kroger’s payroll system transition—an upgrade that, according to plaintiffs, quickly spiraled into a nightmare. Workers were left scrambling to cover expenses as wages failed to arrive, some missing entire pay periods. The system’s temporary shutdown wreaked havoc, with many employees losing pay or receiving late checks.

The proposed class action, brought in 2022, argues that Kroger’s failure to properly compensate workers during the outage violated wage laws and deprived employees of money they rightfully earned. The class’ legal memorandum, submitted in support of the settlement, underscores the financial strain suffered by thousands of workers.

Settlement Breakdown: Where the Money Goes

Under the $21 million agreement, approximately $4.8 million is earmarked for attorney fees, subject to court approval. The remaining funds will be distributed among the affected workers, providing long-awaited relief to those impacted by the payroll chaos.

The employees are represented by attorneys Robert E. DeRose of Barkan Meizlish DeRose Cox LLP, along with Clif Alexander and Austin W. Anderson of Anderson Alexander PLLC.

Meanwhile, Kroger has turned to legal heavyweights Mark A. Knueve, George L. Stevens, and Trina L. Edwards of Vorys Sater Seymour and Pease LLP to defend its position.

What’s Next? Final Approval on the Horizon

With the preliminary green light secured, the case now moves toward final approval proceedings. If Judge Hopkins ultimately signs off on the deal, Kroger will close the book on a costly and reputationally damaging payroll debacle.

For thousands of workers who endured the fallout of the glitch, the deal marks a hard-fought victory. But as class action settlements go, the battle is not over just yet—the final court ruling will determine if this chapter in Kroger’s payroll missteps is truly behind them.