Target Corporation has agreed to distribute $4.6 million in settlement payments to approximately 13,700 current and former employees as part of a lawsuit concerning unpaid wages. The case, known as Sadler v. Target Corp., emerged from claims alleging that the retail giant did not compensate hourly, non-exempt workers at its New Jersey distribution centers for all time worked, including time spent in mandatory security screenings and commuting to workstations.
Settlement Details and Eligibility
The lawsuit, filed by lead plaintiff Krystal Sadler in November 2022, specifically targeted employees at Target’s distribution centers located in Burlington, Perth Amboy, and Logan Township. It asserted that the company violated New Jersey labor laws by neglecting to pay workers for time spent on activities that are essential to their jobs.
While Target has denied any wrongdoing, the company opted for the settlement to avoid a lengthy legal battle. The payments will be allocated on a pro rata basis, determined by Target’s payroll records. Those eligible for the checks worked at the distribution centers from August 6, 2019, onwards. Employees do not need to take any action to receive their payments; those who do not opt out by the deadline of February 13, 2026, will automatically receive their checks following the court’s final approval.
Impact on Employment and Future Plans
This settlement announcement comes on the heels of Target’s decision to cut around 1,000 jobs and eliminate 800 open roles as part of a major restructuring initiative. The layoffs account for about 8% of the company’s corporate workforce, marking the largest reduction in over a decade.
The final court hearing for the settlement is scheduled for February 24, 2026. If approved, the distribution of checks will commence after that date. The court filing emphasized the ease with which Target could track employee hours, asserting, “In this day and age, there is no technological barrier to paying plaintiffs and other employees for such time.” This highlights the company’s capability to accurately calculate the time spent by employees walking to and from their designated areas within the warehouse.
As Target navigates these legal and employment challenges, the outcome of the settlement will provide financial relief to many of its workers affected by the alleged wage violations. This case underscores the ongoing scrutiny of labor practices in the retail sector, particularly as companies adapt to changing economic conditions.