Peloton Workers Lawsuit Settlement Finalized After 3 Case Resolution
A Peloton workers lawsuit settlement has been finalized, closing out litigation that spanned three separate cases and alleged the company denied warehouse and distribution employees legally required overtime pay, meal and rest breaks, and reimbursement for work-related expenses.
Los Angeles Superior Court Judge Nicholas F. Daum dismissed the state-court case on April 15 after the settlement covered that case along with two related federal court actions. The complete terms were not disclosed.
The Role of PAGA in the Peloton Workers Lawsuit Settlement Case
The state suit was filed under California’s Private Attorneys General Act, known as PAGA. PAGA authorizes aggrieved employees to file lawsuits to recover civil penalties on behalf of the State of California for Labor Code violations. Because PAGA suits are fundamentally law enforcement actions, aggrieved employees must notify the Labor and Workforce Development Agency before filing, giving the state the first opportunity to act. If the LWDA declines to pursue its own action, the employee may proceed with a private lawsuit. In July 2024, Governor Newsom signed reform legislation that made important changes to PAGA requirements and expanded opportunities for early resolution.
Named Plaintiffs and Work Locations
The state suit, filed in November 2022 under California’s Private Attorneys General Act, named Joshua Reyes, a former warehouse associate, and Timothy Van Nortwick, a former assembly technician, among the plaintiffs. Both worked at Peloton’s warehouse and distribution center in Perris, in Riverside County, until 2023. Additional aggrieved employees were identified at Peloton warehouse locations in San Jose, Richmond, and Newark in Northern California.
Peloton Workers Lawsuit Settlement: What the Case Alleged
The Peloton workers lawsuit alleged Peloton’s policies required workers to skip or cut short meal and rest breaks without receiving the premium payments California law mandates for missed breaks. Workers also alleged they were required to complete daily temperature screenings at the start of shifts during the COVID-19 pandemic but were not paid for the five to ten minutes those screenings took. Off-the-clock communication with clients, supervisors, and coworkers was cited as another source of unpaid time.
Some employees who used personal vehicles to travel between customer homes, installation sites, and company facilities to handle installations and customer service were also not reimbursed, according to the suit.
Peloton’s alleged conduct was characterized in the filing as “willful” and carried out “in bad faith.”
With the Peloton workers lawsuit settlement now finalized, the company closes a chapter of labor litigation that covered employees across warehouse and distribution operations in Southern and Northern California. The settlement terms remain confidential.
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About the Author: Nikki Smith
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