Coach to Pay $1.75 Million to Underpaid Employees

Coach has agreed to settle a class action lawsuit in which the brand has been accused of not paying their employees overtime.

According to an article on The Fashion Law, Coach has agreed to pay $1.75 million dollars to more than 7,300 store employees in a class action lawsuit that was filed last year in California federal court. Coach has allegedly not given it’s employees “legally-required meal and rest breaks, overtime compensation, and itemized wage statements.”

The lawsuit also originally asked for $7.25 million but Coach agreed to settle the lawsuit out of court and before trail.

A couple of months ago, Hermès and Chanel were both accused of not paying employees in class action lawsuits. Hermès had been accused of not paying two employees at one of the brand’s New York boutiques all the commission that was owed to them and when one of the employees asked his manager how commissions are calculated, he was fired.

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Chanel was accused of not paying overtime or minimum wage for overtime hours by employees from the brand’s shipping department in Beverly Hills.

Coach has at least agreed to pay it’s employees but fashion brands that make as much money as they do as well as Hermès and Chanel shouldn’t be that bad at paying their employees.

Both Hermès and Chanel had financially successful years in 2015 with Hermès having a 19% increase in operating profits at €1.54 billion and Chanel making more profits than any of its competitors with $7.5 billion in revenue and a net income of $1.4 billion. These brands are making a lot of money.

Regardless, a lot of fashion brands are pretentious. According to an article on The Fashion Law, Richard A. Roth, a lawyer representing the former Hermès employees, says, “Hermès is saying take what we give you — we’re Hermès and you’re not.”

What’s more, Chanel alleges that “the evidence they provided (and the fact that they were forced to work overtime in the first place) does not amount to anything more than proof that they’re incapable of fulfilling their job duties,” according to an article on The Fashion Law.

Hermès treats it’s employees’ wages like the Birkin and Chanel accuses its employees of not being able to do their job. Brands that make as much money as they do shouldn’t be that bad at paying their employees but as I said before, they aren’t actually bad at paying their employees, they just don’t want to properly pay them. At least Coach agreed to pay its employees $1.7 million.

So, what do you think? Is Coach, Hermès, and Chanel being pretentious? Let me know in the comments below. Also, don’t forget to subscribe to get new posts sent directly to your inbox and follow me on Facebook, Instagram, and Snapchat.


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