Rite Aid will pay $12 million to settle a class action brought by about 25,000 California employees who were required to buy their own uniforms. U.S. Magistrate Judge Laurel Beeler of the Northern District of California granted final approval on May 26, 2022.
The Case
Rite Aid’s “Team Colors” policy required employees to buy and wear navy tops and khaki pants. The workers argued this was a uniform, and that under California law, Rite Aid had to pay them back for it. They also alleged the unreimbursed costs led to minimum wage violations, inaccurate wage statements, and late wages, and they sought penalties under the Private Attorneys General Act (PAGA).
Kristal Nucci, Kelly Shaw, and Ana Goswick filed the lawsuit in 2019, and the court certified the class in June 2020.
The Fight Over Vests
Rite Aid argued that employees could wear a store-issued vest instead, which made buying the uniform a personal choice. On that basis, the company asked the court to decertify the class.
The workers showed that 71.5% of stores had no vests available. ASM attorney Randall Aiman-Smith also pointed to Rite Aid’s own written policy: “If you are unable to come to work in Team Colors, you may wear a Rite Aid provided vest.” The vest was a fallback, not an equal choice.
The Settlement
The court granted preliminary approval on February 3, 2022, and final approval in May.
- Total: $12 million
- Paid to workers: about $7.4 million after fees and costs, divided by weeks worked
- Average payment: about $365 per worker, which the court noted is more than the $286 workers estimated they spent on uniforms
- Who’s covered: nonexempt employees at California Rite Aid stores from March 19, 2015, through February 3, 2022, except pharmacists, pharmacy interns, and asset protection agents
Why It Matters
Under California Labor Code Section 2802, when an employer requires specific clothing, the employer pays for it. This settlement puts money back in the pockets of thousands of retail workers and sends a clear message to other employers with mandatory dress codes.
ASM’s Role
The workers were represented by Randall B. Aiman-Smith, Reed W.L. Marcy, Hallie Von Rock, and Brent A. Robinson of Aiman-Smith & Marcy.
Required to buy uniforms or work clothes? Contact Aiman-Smith & Marcy for a free consultation at (510) 760-7005.
Source: Nucci et al. v. Rite Aid Corp. et al., Case No. 19-cv-01434, U.S. District Court, Northern District of California. As reported by Bloomberg Law, May 27, 2022.