$5 Million Settlement Reached in PepsiCo Wage Theft Lawsuit

Truck drivers who filed a class action wage lawsuit against PepsiCo secured a preliminary $5 million settlement to resolve claims that the company failed to pay overtime and compensate hours worked during breaks. Under the agreement, PepsiCo would pay $5 million to resolve claims tied to failure to pay overtime and work performed during lunch and rest breaks.

The payment was set to cover 1,800 drivers employed between Jan. 25, 2013 and the date the court approved the settlement. If every eligible class member had participated, each driver would have stood to receive an average of nearly $2,000.

Lawsuit Alleged Several Violations

The lawsuit was filed on March 6, 2017, alleging that the company failed to compensate truck drivers for time worked, including lunch and rest breaks, as well as overtime. According to the complaint, PepsiCo routinely clocked drivers out for 30-minute meal periods even though drivers often continued working through them. 

The drivers, who were paid hourly, were also allegedly required to work more than four hours without a 10-minute rest period, a practice that would violate California’s labor laws.

State law also mandates employers to pay workers one additional hour of pay for each day a required rest period is not provided, but the lawsuit claimed PepsiCo failed to do so. The lawsuit further alleged that PepsiCo failed to pay final wages owed to drivers who left the company or were terminated within the timeframe required by law. 

The complaint also claimed the company failed to reimburse drivers for using personal cell phones for work-related duties.

Protecting Workers’ Rights

California employers must comply with state and federal wage-and-hour laws, and those obligations continue to evolve each year. As of January 1, 2026, California’s statewide minimum wage is $16.90 per hour, a rate that now applies to all employers regardless of size after the state eliminated its small-employer wage tier in 2023. 

Salaried employees are generally exempt from minimum wage and overtime rules only if they earn more than roughly $70,000 annually and primarily perform intellectual, managerial, or creative work requiring independent judgment. Many California cities and counties, as well as certain industries such as fast food and healthcare, also set higher local minimum wage requirements, so drivers and other hourly workers should confirm which rate applies to their specific employer.

If you believe that your employer is not paying you wages you are owed, or if you did not receive your final paycheck promptly after you quit or were terminated, you may be able to pursue a Newport Beach employment lawsuit seeking compensation for back wages and other losses. 

Keeping thorough records of your hours worked and any unpaid wages can strengthen your case, so it is in your best interest to document everything and contact Newport Beach employment lawyers or another experienced employment lawyer who can evaluate your situation and fight to protect your rights and best interests.

Source: http://www.landlinemag.com/story.aspx?storyid=72566