A federal court judge has tentatively approved a settlement of a legal dispute between Dave & Buster’s and employees who claim their hours were cut to spare the company from having to provide them with healthcare insurance.
Court documents do not specify the amount of the settlement, but Bloomberg pegged it at $7.4 million.
The class-action suit filed by employees alleges that Dave & Buster’s sufficiently cut the plaintiffs’ hours to reclassify them as part-timers, who would then be exempted from federal obligations on the chain to provide health insurance or pay a penalty. A review of the court documents does not include an admission of guilt by Dave & Buster’s.
The settlement would affect any Dave & Buster’s employees whose hours were reduced between May 8, 2013, and Dec. 7, 2018, the date of the tentative settlement approval by Judge Alvin Hellerstein of the U.S. District Court of the Southern District of New York. Hellerstein had rejected an earlier settlement accepted by the plaintiffs, saying he wasn’t convinced the deal was fair and reasonable.
A hearing that will determine whether the settlement is formally approved is scheduled for May 9.