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By Sam Stevenson
Associate News Editor
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Target has agreed to settle a wage-and-hour class action lawsuit by distributing a $4.6 million payment to thousands of current and former employees.
Newsweek contacted Target for comment via email.
Why It Matters
It marks a significant development in ongoing debates surrounding employee compensation in the retail sector.
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The case highlights legal scrutiny over workplace practices such as unpaid pre- and post-shift activities—including security screenings and walking within facilities—which, according to plaintiffs, led to thousands of distribution center workers not being fully compensated.
As retail giants face increasing regulatory and public pressure on labor practices, the outcome of the settlement may influence how other companies address wage disputes nationwide.
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What To Know
Target has agreed to distribute $4.6 million to resolve allegations that the company failed to pay hourly, nonexempt employees at its New Jersey distribution centers for all the time worked.
Krystal Sadler filed the lawsuit—Sadler v. Target Corp.—in November 2022 with claims that staff were not compensated for mandatory security screenings and time spent walking before and after shifts.
About 13,700 current and former employees who worked at distribution centers in New Jersey's Burlington, Perth Amboy and Logan Township from August 6, 2019, onward are expected to be eligible.
The payments are set to be distributed on a pro rata basis, calculated using Target's pay records.
No action is required by recipients. Eligible employees who do not opt out are expected to automatically receive their payments.
The settlement includes provisions for wage withholding, with class members receiving W-2 tax forms for wage portions and potentially 1099 forms for nonwage amounts, according to Pix 11.
The $4.6 million is allocated, with about $2.75 million designated for the net settlement fund for claimants, $1.53 million for attorneys' fees and $10,000 to lead plaintiff Sadler, Sourcing Journal reported.
Target has denied all allegations but opted to settle to avoid prolonged litigation. Target workers who wish to exclude themselves or object to the settlement have until February 13 to do so.
What People Are Saying
The New York filing said: "In this day and age, there is no technological barrier to paying plaintiffs and other employees for such time. Target already tracks the times plaintiffs and other employees enter and, in some cases, leave the building, so it can readily calculate the time plaintiffs and other employees spend walking to and from their assigned time clocks inside the warehouse."
Charles J. Kocher, Partner McOmber McOmber & Luber, P.C., counsel to Krystal Sadler and the Class, told Newsweek: "This was a hard-fought case with many moving parts. Our legal team, including Tyler Burrell and Gaetano DiPersia, walked thousands of square feet of the three warehouses with our expert and put this complex case together from the ground up. We took many depositions and collected every shred of evidence we could to bring this three-year-old case to a close, to give the Class members some justice."
What Happens Next
Checks are set to be issued following the court's final approval, scheduled for February 24.
If approved, automatic settlement distribution checks will be sent to qualifying class members shortly thereafter.
Update, 3/1/26, 3:00 a.m. ET. This article was updated with a statement from Charles J. Kocher.
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