Target is set to issue settlement checks totaling $4.6 million to approximately 13,700 current and former employees as part of a class action lawsuit resolution concerning unpaid wages at its New Jersey distribution centers. The agreement addresses claims that hourly, non-exempt workers were not fully compensated for all time worked, in violation of state labor requirements.
The lawsuit, originally filed in November 2022 under the name Sadler v. Target Corp., centered on practices at Target’s facilities in Burlington, Perth Amboy, and Logan Township. Lead plaintiff Krystal Sadler brought the case forward on behalf of workers who alleged that mandatory security screenings and extended walks to and from workstations—both before and after scheduled shifts—went unpaid. New Jersey law requires employers to compensate employees for such time when it is integral to the job and occurs under employer control.
Although Target denied any wrongdoing throughout the proceedings, the company chose to settle the matter to avoid the costs and uncertainties of prolonged litigation. The proposed agreement has already cleared several procedural hurdles, including a federal court’s denial of Target’s motion to pause the case in March 2025.
Under the settlement terms, eligible employees who worked at the three specified New Jersey locations on or after August 6, 2019, will receive payments calculated on a pro rata basis using Target’s payroll records. The distribution process requires no action from affected workers. Those who remain part of the class and do not opt out by the February 13, 2026, deadline will automatically receive their checks following final court approval.
A fairness hearing is scheduled for February 24, 2026, after which the court is expected to grant final approval and trigger the payment process. Of the total $4.6 million fund, roughly $2.75 million will go directly to employee payments. The remaining portion covers attorneys’ fees amounting to about $1.53 million, along with a $10,000 service award to the lead plaintiff. Recipients will receive appropriate tax documentation, with portions of the payments classified as wages or non-wage compensation depending on their nature.
The case highlights ongoing scrutiny of off-the-clock work in large-scale warehousing operations, where long distances within facilities and mandatory entry procedures can add significant uncompensated time. Similar concerns have surfaced elsewhere, as evidenced by a separate lawsuit filed against Target in New York in August 2025. That complaint, brought by former and current employees at the company’s Wilton warehouse, with an additional plaintiff from the Amsterdam facility joining via an amended filing in November 2025, makes parallel allegations regarding unpaid walking time. The New York plaintiffs estimate that such uncompensated periods result in annual losses of $1,000 to $2,000 per worker, potentially totaling more than $2 million in unpaid wages across the affected group.
These developments reflect broader challenges in the retail and logistics sectors, where employers balance operational efficiency against compliance with varying state wage-and-hour laws. As warehouse roles continue to grow in importance for major retailers, cases like these underscore the importance of accurate time tracking and compensation for all required job activities.
The settlement provides a measure of financial relief to thousands of workers while allowing Target to resolve the New Jersey claims without further court battles. Distribution of funds is anticipated to begin shortly after the upcoming fairness hearing, bringing closure to a dispute that has spanned more than three years.
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