Class Action Lawsuit Former Polo Ralph Lauren Employees |
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| Thursday, 10 July 2008 | |
 A San Francisco court judge granted class-action status to a compensation lawsuit brought by four former employees of Polo Ralph Lauren, potentially allowing an estimated 5,300 other workers to join the case. The lawsuit accuses the company of not properly compensating employees
for time spent in its stores, failing to provide rest breaks, improperly classifying all salespeople as commission-based earners exempt from overtime and improperly using an arrears program to reduce commissions earnings.
According to allegations in the complaint, originally filed in May 2006 (poloclassaction.com), employees at the stores were discouraged or prevented from taking breaks and were subject to bag checks for stolen merchandise before leaving the stores but after they had clocked out. The former sales associates said they were kept after work in locked stores for as many as 30 minutes while their purses and bags were examined to make sure they weren’t stealing. They were not paid for the time they were detained, the plaintiffs say. The class certification includes any cashier or sales associate injured by an alleged violation from May 30, 2002, to the present. According to court documents, Polo Ralph Lauren operates 28 stores in the state. As part of the ruling both parties were ordered to enter mediation within the next 45 days. Patrick Kitchin, of The Law Office of Patrick R. Kitchin, which represents the plaintiffs, said that his clients will make a good faith effort to mediate but that they are preparing for trial. Kitchin is a well-known player in the San Francisco court and has previously successfully led other class actions from employees. A representative for Polo Ralph Lauren said that the company does not comment on pending litigation. Last week, a Minnesota district court judge ordered Wal-Mart Stores Inc. to pay $6.5 million to compensate employees of its Wal-Mart and its Sam’s Club stores in the state for missed rest breaks and work done off the clock, leaving open the possibility of civil penalties which could amount to as much as $2 billion. |
Judge Susan Ilston granted the motion after hearing testimony by the four former employees bringing the suit and declarations filed by other class members, as well as competing declarations in defense of Polo Ralph Lauren filed by current employees. Her ruling further designated two subclasses of plaintiffs as the case proceeds: sales associates mislabeled as commissioned salespeople and sales associates from whom the company took back earned wages through its arrears program. Members of each subclass could stand to receive separate damages.