It was recently announced that Trader Joe’s has agreed to pay more than $55K to 95 Seattle workers. Seattle’s Office of Labor Standards alleged that Trader Joe’s did not include hazard pay when determining an employee’s regular pay rate for the purposes of overtime.
Trader Joe’s has five stores and several hundred employees in Seattle and more than 500 stores and more than 50,000 employees nationwide. As of Sept. 2, 2022, covered employers are longer required to pay the increased hazard pay rate. On Aug. 3, 2022, the Seattle City Council voted to suspend the requirement for certain grocery businesses.
This is the second settlement within seven months, Trader Joe’s will pay more than $55,000 in payments to 95 employees who worked overtime in Seattle. Based on state data, the Grocery Employee Hazard Pay ordinance, along with other emergency ordinances, was created during the pandemic to protect and provide much-needed relief for front-line workers. Some points are phasing out, but certain requirements of the GEHP ordinance still apply for up to three years.
The Trader Joe’s company allegedly did not include hazard pay when determining an employee’s regular pay rate for the purposes of overtime as required between Feb. 3, 2021, and Sept. 2, 2022. Trader Joe’s worker instead were paid 1.5 times the base pay rate in addition to $4 hazard pay per each overtime hour worked.
The first inquiry into possible labor standard violations by Trader Joe’s grocer store was made at the store in the University District. The grocer agreed to a settlement and paid $44,528.22 to 129 employees and $575.31 to the city to resolve claims and fines under Seattle’s Secure Scheduling ordinance.
