Coach Settles Overtime Lawsuit, Agrees to Pay $1.75 Million in Damages to Employees

Coach has agreed to settle a multi-million dollar class action lawsuit, in which it was accused of deliberately failing to compensate store employees for the time they spent getting their bags checked after the completion of their shifts. In the lawsuit, which was filed over a year ago in California federal court, former Coach employee Eve Miranda alleged that the American fashion brand failed to provide her and more than 7,300 non-exempt Coach employees in California with legally-required meal and rest breaks, overtime compensation, and itemized wage statements.

Well, as of this past week, Coach, which has finally begun to regain some of its coolness factor under the direction of creative head Stuart Vevers after years of significant financial decline, agreed to terms to settle the lawsuit out of court and before trial. The luxury retailer and the plaintiffs resolved the suit in a “compromise that both sides agreed was fair and reasonable,” but that certainly falls short of the lawsuit’s original demand for $7.25 million in damages.  The fashion house, instead, agreed to pay out $1.75 million to Miranda and her fellow class members. The other terms of the lawsuit are confidential.

Proposed class action suits alleging companies’ failures to provide store employees with meal and rest breaks, and overtime compensation are running rampant through the fashion industry – with defendants ranging from high fashion houses to purely mass market retailers.  Over the past few years alone, Chanel, Gucci, Michael Kors, Cole Haan, J. Crew, H&M, Abercrombie & Fitch, Gap, and Urban Outfitters, among others have been named in similar suits, with the plaintiffs seeking millions.