Security checks Cost Nike $8.25M in Unpaid Wages for its Retail Workers

Security checks for Nike workers has just cost the retail company big. Nike was accused of failing to pay its retail employees for time spent waiting to clear security checks. The class action lawsuit, which was brought back in 2014 in California, has finally been resolved for over $8 million. More than 16,000 current and former hourly retail workers that were employed by Nike Retail Services between February 2010 and November 2019 stand to benefit from this $8.25 million settlement.

The lawsuit alleged hourly retail workers were subject to mandatory security checks at the end of every shift. Workers had to wait around as the company checked their personal belongings or conducted visual inspections when they were not carrying a bag before exiting the store at anytime. Workers alleged all of security screenings would occur after workers had already clocked out and they went uncompensated for minimum wages and applicable overtime for time spent waiting for checks as well as time spent undergoing said inspections. Even though Nike denies any wrongdoing, the retail company decided to change its bag check policy in November of 2019 to have security inspections performed while employees were still on the clock.

Security checks for employees are a common policy within the retail industry. However, not many companies pay their workers for time spent waiting for and undergoing these checkpoints. If you work in retail or in a similar industry that requires bag checks, call our employment law firm, Fitapelli & Schaffer, LLP, to see if you may be owed wages for your time. You can reach us at (212) 300-0375 or visit our website for additional information regarding your rights.