Gap Inc. has agreed to settle a class action lawsuit charging that the retail
clothing company violated California labor laws by requiring employees to buy
and wear Gap brand clothing and accessories while on the job. Under the settlement,
which has been approved by a San Francisco superior court, Gap will provide
Gap gift cards worth between $40 and $240 to approximately 55,000 current and
former employees. The settlement covers anyone who worked for Gap or Banana
Republic between February 4, 1999, and December 21, 2003.
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Get Your Report Now!As part of the settlement, the employees' attorneys have asked the court to
award $400,000 in attorney's fees, as well as $10,000 to the employee who initiated
the class action lawsuit. In settling, Gap denied liability, stating that it
only required employees to look "brand appropriate" and did not insist
that they purchase Gap clothing.
This settlement is just the latest development in a series of charges against
California retailers accusing them of requiring workers to buy and wear the
retailers' own clothes, in violation of Labor Code provisions that obligate
employers to pay for employee uniforms. In 2003, hip clothing retailer Abercrombie
& Fitch settled a similar lawsuit, agreeing to pay out $2.2 million