Vail Resorts has offered $13.1 million to settle the five labor lawsuits in California, and the California state court had granted the initial approval, reported TownLift.
This arrangement settles all claims that Vail Resorts failed to address during the last three to four years, including reimbursement for employee equipment and payment for all working hours.
Accordingly, $8.24 million will be distributed over 100,000 Vail Resorts employees subsequent to the deductions of legal fees and administrative expenses.
The payment will be determined according to an allocation formula that considers job tenure, designation, and location. However, the employees in snow positions would receive higher consideration.
Another class-action employee lawsuit in Colorado has been delayed since last year due to the settlement activities of the California lawsuit.
The Colorado-based attorneys had argued that Vail Resorts could not resolve all claims if all the plaintiffs were not listed. However, the motion was denied by a California state judge on March 7.
Both lawsuits claim that the company failed to pay their employees for all hours worked, together with meals, training, breaks, and overtime. Moreover, they claim that the company had not reimbursed employees for required work equipment, for instance, skiing gear.
The settlement agreement is handled through a third-party settlement administrator before seeking final court approval in June.
- Alvarez, Director of Corporate Communications of Vail Resorts’ stated in October that they believe that the settlement is fair and appropriate.
Alvarez further stated that although the company disagrees with the accuracy of the claims, considering the time and cost of further legal actions, the parties concerned have agreed on a settlement by seeking court approval to ensure a fair outcome for all.
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