Amidst transitions at the executive level and repeated quarters of disappointing sales, Burberry has managed to settle a labor lawsuit involving nearly 650 employees. The British fashion brand has agreed to pay $2.54 million to put an end to the class action lawsuit that Malik Payano filed in the U.S. District Court for the Southern District of New York in December 2016, alleging that the company allegedly failed to adequately pay employees for overtime labor.
According to Payano’s suit, Burberry routinely and “systematically” forced lower-ranking employees – including sales associates, beauty consultants, and shipping department employees – to work overtime without being paid extra to do so. New York-based Burberry employees were allegedly expected to work for an extra 30 minutes to an hour after the end of their shifts to tidy up the brand’s stores and complete paper work.
During the holidays, Payano's complaint alleged that the number of overtime hours increased to three to six, all without pay, as according to Burberry management, the company "does not pay overtime."
While the settlement amount, including the legal fees associated with it (roughly 1/3 of the $2.54 million figure) still need to be approved by the judge, Payano and the rest of the plaintiffs stand to each gain roughly $2,500 in connection with the suit.
A Burberry spokeswoman said the company “takes the treatment of its employees very seriously and we are committed to complying with all required employment regulations and guidelines, everywhere we operate.”
* The case is Payano et al v. Burberry Limited, 1:15-cv-10178 (SDNY).