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Securitas to pay $1.275M to settle FLSA, Illinois wage claims for off-the-clock training and orientation

By Pamela Wolf, J.D.

On Wednesday, May 7, a federal judge in Chicago gave final approval to a $1.275 million settlement resolving the class claims of security guards in Illinois that they were forced to work off the clock during their training and orientation for employment with Securitas Security Services USA, Inc. The settlement resolves the claims raised in two lawsuits; one brought under the FLSA, and another filed under the Illinois Minimum Wage Act.

Although Securitas admits no wrongdoing or liability, and it challenged whether the action can be settled on a class-wide basis, it has agreed to pay $1.275 million to put the litigation to an end. The class includes more than 9,860 individuals, 90 of whom have opted out. For purposes of settlement only, Securitas stipulated to a settlement class of all those who attended new hire orientation in Illinois from May 29, 2006 to June 30, 2011. None of the class members raised objections to the proposed settlement.

From the settlement fund, 703 participating FLSA class members will receive gross amounts of $57.20 each, computed as four hours at $7.15, the average minimum wage in effect, and multiplied by two for liquidated damages. Another potentially 9,190 Illinois Minimum Wage Act class members will receive a gross amount of $32.60 each, computed as four hours at the average minimum wage of $8.15 for class members who attended introductory training and orientation before December 31, 2009; those who attended introductory training and orientation between December 31, 2009 and June 30, 2011 will receive $24.45 gross, computed as three hours at the minimum wage of $8.15. These amounts are subject to taxes and deductions.

From the $1.275 million settlement fund, the seven representative plaintiffs will each be given $5,000, and $929,844 in attorneys’ fees and costs will go to class counsel.