Thousands of Target workers may soon find unexpected money in their mailboxes. A major class action lawsuit accusing the retail giant of failing to pay employees for all hours worked has officially been settled, and the outcome requires Target to distribute $4.6 million to affected workers.
The settlement affects employees at Target’s New Jersey logistics and distribution centers and highlights a growing national focus on what legally counts as “work time.” For many workers, the process is automatic no forms, no claims, no action required.
Introduction to the Target Class Action Settlement
The settlement involves Target and centers on allegations raised by hourly, non-exempt employees working at the company’s distribution facilities in New Jersey.
Workers claimed that time spent on mandatory activities such as walking long distances within warehouses, passing through security screenings, and moving between work areas was not fully compensated. While Target has denied wrongdoing, the company agreed to resolve the dispute through a financial settlement.
A labor law analyst explained:
“These cases are less about intent and more about compliance. Employers are increasingly held responsible for every minute of required work activity.”
Why Target Had to Pay $4.6 Million?
The lawsuit argued that Target failed to count certain mandatory pre-shift and post-shift activities as compensable work time. According to the complaint, employees were required to arrive early or stay late to complete tasks that were necessary for their jobs but were not reflected on their timecards.
Rather than continue lengthy litigation, Target opted to settle the case.
Target Settlement at a Glance
| Detail | Information |
|---|---|
| Settlement amount | $4.6 million |
| Estimated workers affected | About 13,700 |
| Worksites involved | NJ logistics centers |
| Admission of wrongdoing | No |
| Payment method | Automatic checks |
Target maintains that it acted lawfully but agreed to the settlement to bring closure to the dispute.
No Apology, But Money on the Table
As is common in large employment settlements, Target did not admit fault. The agreement explicitly states that the payment does not represent an acknowledgment of wrongdoing.
Still, the financial impact is real. The $4.6 million fund will be distributed among eligible workers based on factors such as length of employment and payroll records.
A workplace compliance attorney noted:
“Companies often settle to limit risk, control costs, and avoid setting legal precedents even when they deny liability.”
Who Is Eligible to Receive a Check?
Eligibility is clearly defined in the settlement terms.
You may qualify if all of the following apply:
- You worked as an hourly, non-exempt employee
- You were employed at a Target distribution or logistics center in New Jersey
- Your employment occurred on or after August 2019
- You do not opt out of the settlement
Importantly, you do not need to file a claim if you qualify.
Eligibility Summary
| Requirement | Eligible |
|---|---|
| Hourly employee | Yes |
| Salaried employee | No |
| NJ logistics center | Yes |
| Retail store employee | No |
| Employment since Aug 2019 | Yes |
How Much Will Each Worker Receive?
There is no flat payment amount. Each worker’s share will be calculated based on:
- Length of employment during the covered period
- Payroll and attendance records
- Number of eligible workweeks
Some workers may receive modest checks, while others especially those with longer tenures could receive larger amounts.
A labor economist explained:
“Pro-rata distributions are standard. The longer you were affected, the larger your portion of the settlement.”
When Will the Checks Be Sent?
There is a timeline, though final payment depends on court approval.
Expected Timeline
| Step | Timing |
|---|---|
| Deadline to opt out or object | February 2026 |
| Final court hearing | February 2026 |
| Payment distribution | Shortly after approval |
Once the judge grants final approval, settlement administrators will begin issuing checks automatically.
What Workers Need to Do (or Not Do)?
For most eligible workers, the answer is simple: do nothing.
You only need to act if:
- You want to opt out of the settlement
- You want to object to its terms
Otherwise, your check will be mailed automatically using the most recent address on file.
A workers’ rights advocate advised:
“Read any official notice carefully, but if you qualify and agree with the settlement, inaction is often the correct action.”
Why This Case Matters Beyond Target?
This lawsuit reflects a broader shift in how courts interpret compensable work time. Activities once considered incidental like security checks or internal walking are increasingly recognized as part of the workday when they are mandatory.
Retail and logistics companies across the country are now under scrutiny for similar practices.
Growing Trend in Labor Law
| Issue | Legal Trend |
|---|---|
| Security screenings | Often compensable |
| Pre-shift activities | Increasingly protected |
| Internal movement | Recognized as work |
| Time tracking accuracy | Under investigation |
A labor policy researcher commented:
“The message is clear: if the employer requires it, it’s probably work and work must be paid.”
A Sector Facing Increased Legal Pressure
Target is not alone. Warehousing, logistics, and retail employers are facing a wave of class actions over wage-and-hour compliance.
These cases often end in settlements rather than trials, but they send strong signals to the entire industry.
A union-side employment attorney noted:
“Each settlement raises the standard. Companies either adapt or pay later.”
What If You Think You’re Affected?
If you believe you qualify:
- Watch for official settlement notices
- Keep your mailing address updated if possible
- Do not respond to unofficial messages or third-party solicitations
Only settlement administrators or court-approved notices are legitimate.
Avoiding Scams Related to the Settlement
As with any high-profile payout, scams may emerge. Be cautious of:
- Emails asking for personal information
- Messages requesting fees to “release” your check
- Unofficial websites claiming to manage payments
Target and the court will not ask for sensitive information to issue settlement checks.
Why This Settlement Sends a Strong Message?
At its core, the case reinforces a simple principle: time spent working is time that must be paid.
For thousands of workers, this settlement represents long-overdue recognition of that principle. For employers, it’s a reminder that small unpaid minutes can add up to millions.
Final Thought
Target’s $4.6 million settlement means automatic checks for thousands of New Jersey logistics workers no claims required. While the company admits no wrongdoing, the payout underscores a growing legal consensus: mandatory work time must be compensated.
If you worked at a Target distribution center in New Jersey since August 2019, keep an eye on your mailbox. The check may arrive when you least expect it but it’s money earned.
FAQs
Do I need to file a claim to get paid?
No, payments are automatic if you qualify.
Can I opt out of the settlement?
Yes, before the February deadline.
Will this affect my taxes?
Settlement payments may be taxable depending on classification.
Does this apply to store employees?
No, only logistics and distribution center workers in New Jersey.
When will the checks arrive?
Shortly after final court approval in February 2026.
