Kraft Heinz settles FLSA class action for $15 million

If you worked as an hourly-paid, non-exempt employee of Kraft Heinz Foods Company between September 22, 2019, you may be eligible to claim a monetary award from a class action settlement.

Kraft Heinz Foods Company has agreed to pay $15,000,000 to settle a class action lawsuit for alleged unlawful pay practices, including failure to compensate for pre-shift and post-shift activities and incorrect overtime calculations.

Who are the class members?

Class members include current and former hourly-paid, non-exempt employees of Kraft Heinz Foods Company who were employed between September 22, 2019, and the date the Court enters final approval of the settlement.

How much can class members get?

The settlement fund of $15,000,000 will be distributed among class members based on the state in which they worked. The allocation considers the alleged damages for donning and doffing activities and regular rate damages.

Settlement awards by state:

• Arkansas: $825.94
• California: $61.25
• Delaware: $124.75
• Florida: $320.65
• Illinois: $254.52
• Indiana: $350.00
• Iowa: $200.04
• Michigan: $99.01
• Minnesota: $172.97
• Missouri: $210.77
• Ohio: $403.47
• Oregon: $421.26
• New York: $574.61
• South Carolina: $104.92
• Texas: $137.12
• Virginia: $97.42
• Wisconsin: $248.89

Class members do not need to take any action to receive their compensation. The Settlement Administrator will distribute the funds based on the records provided by Kraft Heinz.

$15,000,000 Settlement Fund

The settlement fund of $15,000,000 will cover payments to class members, service awards to named plaintiffs, and attorneys' fees and costs:

• $9,755,000 allocated for payments to class members.
• $25,000 service award for Lead Named Plaintiff Dakota Grede.
• $15,000 service award for Lead Named Plaintiff Steve Moffett.
• $5,025,000 allocated for attorneys' fees and costs.

Important dates

• Exclusion Request Deadline: September 30, 2024
• Fairness Hearing: November 1, 2024

When is the Kraft Heinz FLSA Settlement payout date?

The awards will be paid following the final approval of the settlement, which is expected to occur after the Fairness Hearing on November 1, 2024.

Why is there a class action settlement?

The lawsuit alleged that Kraft Heinz failed to compensate employees for all hours worked, including time spent on pre-shift and post-shift activities, and did not correctly calculate overtime pay by excluding certain non-discretionary compensation. While Kraft Heinz denies these allegations, the settlement was reached to avoid the costs and risks of continued litigation.

What happens next?

The Court will hold a Fairness Hearing on November 1, 2024, to decide whether the proposed settlement is fair, reasonable, and adequate. If approved, the settlement will be finalized, and payments will be distributed to class members.