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It’s official—Target will have to pay its workers $4.6 million after the class action lawsuit was settled

by Laura M.
January 5, 2026
in Economy
It's official—Target will have to pay its workers $4.6 million after the class action lawsuit was settled

It's official—Target will have to pay its workers $4.6 million after the class action lawsuit was settled

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Attention, Target workers, this is interesting for you because they are going to have to send automatic checks. Target is going to have to open its wallet… and not a little. The company will start sending automatic checks to thousands of workers after closing a $4.6 million court settlement, and no, you will not have to claim anything, just check whether you meet the requirements. What is happening at Target?

A multimillion dollar penalty

It all started at Target’s logistics centers in New Jersey. A group of workers claimed that they were not being paid for all the time they worked and decided to sue the company.

According to the lawsuit, employees had to walk long distances inside the facilities, go through security checks, and make internal movements before and after their shifts… but that time was not counted as working hours. Real working time that was not included on the paycheck.

Of course, Target claimed they were not doing anything wrong, but as often happens in these cases, they decided not to drag out the conflict and signed a financial settlement to “silence their workers”.

Money but no apologies

The agreement creates a $4.6 million fund that will be distributed among about 13,700 employees. And be careful, because what each worker receives will depend on how long they worked and the payroll records the company has. Target has not admitted any wrongdoing, but they wanted to turn the page with a check in between.

Who will receive the check

The payments will go to hourly employees, non exempt, who worked at Target distribution centers in New Jersey since August 2019. If you are in that group and you do not opt out of the settlement, you do not have to do absolutely anything and the check will be issued automatically.

Is there a timeline?

Yes. The deadline to object to or exclude yourself from the settlement will close in February, which is when the final court hearing is scheduled. If it is approved, the money will arrive shortly after.

Time at work is also work

One trend we are seeing is that we are starting to become aware that time should also be paid. Going to and from the workplace, or moving around inside it, also happens during working hours and therefore should be paid. Fortunately, more and more courts recognize that screenings, internal movements, or “pre shift” tasks are also work, and if it is work, it has to be paid.

A sector under scrutiny

Target will not be the first nor the last to have to assume these “extra payments”, so to speak. Retail and logistics are being investigated for these same practices, and they also set a precedent. Claiming your rights always works, otherwise, what are workers left with?

What do you have to do if you think it affects you?

If you receive an official notice and meet the requirements, do nothing. The check will arrive on its own. You only need to act if you want to opt out of the settlement or object to something. If not, relax… and check the mailbox when the time comes.

So if you worked at a Target logistics center in New Jersey, stay alert. One day you might open the mail and find a check you were not expecting… but that belongs to you.

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