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Tue, May 16, 2017

SpaceX Settles Class Action Suit With Workers

But Most Individuals Will Only See About $500

A class-action lawsuit against SpaceX brought by some 4,100 employees for not giving them mandated breaks has been settled ... and as is common with such cases, the attorneys will reap the most benefit from the case.

The website Inverse reports that the suit was settled for $4 million ... with $1.3 million going to the attorneys to represented the plaintiffs in the case. As for the workers, their settlement will net most about $500, with the highest payout being $2,000 for an individual.

The website reports that one of the plaintiffs, identified as Howard Smith, tried to block the settlement in order to get more for each individual. Smith's attorney Dalia Khalili said the settlement was not "fair and adequate", and that the court did not have enough information to make the right decision.

California law requires breaks for employees every four hours, along with time allotted for meals. However, a 2016 Payscale survey found that shifts at SpaceX were structured in such a way that workers were unable to take their mandated breaks, and were not paid more for working when they should have been on breaks.

But given the size of Elon Musk's enterprises, the $4 million payout may seem pretty paltry ... and may not be enough to prod the company into making changes in how it compensates employees. 

FMI: Original Article 


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