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Del Taco to pay $50M to settle a wage-and-hour lawsuit

The claims date back a decade. Parent company Jack in the Box, which acquired the taco chain in March, said it anticipated the payout.
Del Taco lawsuit
Image courtesy of Del Taco

The Del Taco acquisition just got a bit costlier for Jack in the Box.

The San Diego-based burger chain late on Friday said that Del Taco, which it acquired in March, has agreed to settle a wage-and-hour class action lawsuit out of California for $50 million.

The lawsuit, initially filed in Alameda County, Calif., in 2017, accused Del Taco of violating state wage and hour lawsuits. The case ultimately included people who worked with the company between 2012 and 2021.

Jack in the Box in a federal securities filing said that it anticipated reaching the settlement, which is “within the anticipated range.” The company also said that its acquisition will have a “minimal impact” on its earnings per share.

Jack in the Box completed its $585 million acquisition of Del Taco in March. The deal combined two Southern California-based quick-service chains known for late-night service. Jack in the Box operates 2,200 locations, 95% of which are franchisee-owned. Del Taco features about 600 locations, half of which are company-owned. The deal is expected to generate about $15 million in cost savings between the two chains within two years.

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