Coach Inc. Faces Minimum Wage Class Action Lawsuit

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A former employee of Coach Inc. has slammed the company with a proposed wage and hour class action lawsuit for allegedly misclassifying employees as unpaid interns as well as failing to follow minimum wage requirements.

This unpaid internship class action lawsuit was filed in the state of New York, and is the latest in the growing number of companies to be accused of such allegations.

The former employee Johnetta Campbell states that the company had wrongfully withheld wages from her and other employees since July 2008. The wage and hour class action lawsuit claims that this is in direct violation of New York labor law, as the company had hired Campbell and other employees to create trend boards, research new trends and fabrics, work in the warehouse, and perform other various tasks, but did not provide any compensation.

Campbell is fighting for the monetary wages they should have earned from Coach, but those wages were held because the company had classified them as interns to exempt them from minimum wage requirements. Campbell alleges in her wage and hour class action lawsuit that Coach had started this practice to minimize labor costs, and to retain a higher profit value.

According to the wage and hour lawsuit, Campbell worked for Coach from January 2012 through March 2012 and would typically work five days out of the week up to eight hours a day. Under New York state wage laws, an intern is only exempt from minimum wage if the intern is not in an employment relationship with the company.

Under New York law and the U.S.Department of Labor, the criteria for a non-employment relationship consist of the following:

• The training is comparable to what the intern would receive in educational program.
• The training is for the benefit of the intern.
• The intern does not displace regular employees and works under close supervision.
• The activities of trainees or students do not provide an immediate advantage to the employer.
• The interns are not necessarily entitled to a job at the conclusion of the training period and are free to take jobs elsewhere in the same field.
• The interns are notified in writing that they will not receive any wages and are not considered employees for minimum wage purposes.
• Any clinical training is performed under the supervision and direction of people who are experienced in the activity.
• The interns do not receive employee benefits.
• The training is general and qualifies interns to work in any similar businesses in the industry.
• Advertisements, postings, or solicitations for the internship program clearly discusses the educational benefits rather than employment, although employers may indicate that qualified graduates may be considered for employment.

Campbell is seeking to recover all unpaid wages owed to her and all other similar employees who are or were employed by Coach or its affiliates. The amount in damages Campbell is suing for will be determined at trial, which may include interest and any legal expenses.

The Coach Minimum Wage Class Action Lawsuit is Johnetta Campbell v. Coach Inc., Case No. 156453/2014, in the Supreme Court of the State of New York, County of New York.

Join a Free Unpaid Overtime Class Action Lawsuit Investigation

If you were forced to work off the clock or without overtime pay in California within the past 2 to 3 years, you have rights – and you don’t have to take on the company alone. Learn more and obtain a free evaluation of your case to see if you’re eligible for back pay and other compensation at the Unpaid Overtime Lawsuit: Wage & Hour, Overtime Pay Class Action Lawsuit Investigation.