This case was certified as a class action under the Illinois Wage Payment and Collection Act and the Illinois Day and Temporary Labor Services Act. The lawsuit alleged Kelly Services maintained an illegal vacation pay policy. Many companies, like Kelly Services, use vacation policies that result in the forfeiture of earned vacation pay upon the termination of employment. For example, some vacation policies state that if you are terminated “for cause,” you lose the vacation pay that you earned and accrued prior being fired. Other vacation policies require that you to work a certain amount of hours in the calendar year, and be employed on a certain date, in order to be entitled to your “vacation benefit.” These kinds of vacation policies may violate state law and result in an unlawful forfeiture of your earned vacation pay. That was the crux of the Kelly Services case.
On behalf of all persons who had worked for Kelly Services for a 5 year period of time, we won a settlement that is believed to be the largest ever achieved for an Illinois only class action. The class size exceeded 95,000 persons. The settlement was $11,000,000. More information on vacation pay claims can be found at www.flsalaw.com/practice_areas/current_investigations_lawyer.php.
Kim and Sorenson v. CHT Corp. and Charlie Trotter
Employment & Labor
Jun 30, 2005
Settlement on Class-Wide Basis
This case was filed as a class action by servers and a chef employed at the restaurant “Charlie Trotter’s” in Chicago. The employees claimed that Charlie Trotter used an illegal tip pool by retaining a portion of the tips and by requiring servers to share their tips with non-tipped employees. The employees also claimed the Charlie Trotter engaged in a complicated scheme to exclude certain “bonus” payments from employees’ regular rates of pay for purposes of calculating overtime pay. The settlement is believed to the one of the largest wage and hour settlement in the restaurant industry in Illinois history. For more information on tip pooling and how to calculate overtime pay for tipped employees, see www.flsalaw.com/practice_areas/overtime_pay_tipped_employees_lawyer.php