CLASS ACTION SETTLEMENT FOR GOLD'N PLUMP EMPLOYEES

MINNEAPOLIS: The law firms of Zimmerman Reed and Larson King announce today that current and former Gold¡¯n Plump Poultry, Inc. employees reached a settlement in a class action filed in 2004 against Gold¡¯n Plump. The lawsuit involved the processing and sanitation employees¡¯ claims that they were denied compensation for all of the hours that they were required to work. On February 14, 2008, the settlement was given preliminary approval by The Honorable Patrick J. Schiltz, of the United States District Court for the District of Minnesota. The Order authorizes a formal Notice of the settlement to be mailed to eligible employees, along with claims forms.

The employeesʹ claims focused specifically on time they were required to put on and take off required clothing and equipment while on the plant premises, and on the time they were required to walk between plant areas¡ªclaims which are common in the food processing industry. This industry wide practice has been challenged by both employees and by the United States Department of Labor. It also recently came under the scrutiny of the United States Supreme Court. In IBP v. Alvarez, Inc., the Supreme Court announced that employers must consider the process of putting on and taking off required clothing and equipment©\ also called ʺdonning and doffingʺ©\as ʺwork.ʺ

Gordon Rudd, a partner with Zimmerman Reed PLLP and lead attorney for the employees, heralded the settlement as a victory for current and future employees. According to Rudd, ¡°In addition to requiring Gold¡¯n Plump to fund $1.2 million for back pay compensation, Gold ¡®n Plump has agreed to change its pay practices going forward.¡±

The settlement was reached within days of trial commencing. Commenting on the timing of settlement, Joe Snodgrass, a partner with Larson King, LLP, and also lead attorney noted, ¡°This result is what our clients hoped for and was achieved without costly trials, and without the uncertainty and delays inherent in every trial. The settlement provides a positive and sure result.¡±

Eligible employees will receive a mailed notice of the settlement and a claim form by the end of February 2008. All employees must submit a claim form to be eligible to receive money.

 
 
 
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