Retail giant Target is set to distribute a substantial $4.6 million settlement to approximately 13,700 current and former employees, resolving a major class action lawsuit centred on allegations of unpaid wages at its New Jersey distribution hubs.
The Core of the New Jersey Lawsuit
The legal action, Sadler v. Target Corp., was initiated in November 2022 by lead plaintiff Krystal Sadler. It was filed on behalf of hourly, non-exempt staff working at Target's distribution facilities in Burlington, Perth Amboy, and Logan Township.
The lawsuit claimed that Target failed to properly compensate its workforce for all hours worked, as mandated by New Jersey state law. Specifically, it alleged the company did not pay for time spent undergoing mandatory security screenings and for the often lengthy walks employees must take to and from their workstations before and after their official shifts begin and end.
While Target has denied any wrongdoing, the corporation agreed to the multimillion-dollar settlement to avoid the costs and uncertainty of prolonged litigation.
Who Gets Paid and How Much?
Eligibility for a payment is extended to workers employed at the three named New Jersey facilities from August 6, 2019, onward. The settlement fund will be divided on a pro-rata basis, meaning individual payments will be calculated according to Target's own payroll records from that period.
Eligible employees do not need to take any action to receive their payment. Those included in the class who do not formally opt out by the deadline of February 13, 2026, will automatically be sent a settlement check once the court grants final approval.
The settlement's financial breakdown allocates roughly $2.75 million for direct payments to employees. A further $1.53 million is designated for attorneys' fees, and lead plaintiff Krystal Sadler will receive a $10,000 service award. Recipients will be sent appropriate tax documentation.
Legal Proceedings and a Parallel Case in New York
The path to settlement saw a key development in March 2025, when a federal court denied Target's motion to pause the case. A final fairness hearing is now scheduled for February 24, 2026, after which the distribution of checks is expected to commence.
Meanwhile, a strikingly similar lawsuit is progressing against Target in New York. Filed in August 2025 by former warehouse worker Jeanna Kratzert and current employee Neil Mosher from the Wilton facility, it makes identical claims about unpaid walking time. An amended complaint in November 2025 added another plaintiff from the Amsterdam warehouse.
The New York filing argues that this unpaid time can cost individual workers between $1,000 and $2,000 annually, amounting to over $2 million in total unpaid wages. It contends that "there is no technological barrier to paying plaintiffs," noting Target already tracks when employees enter and sometimes leave the buildings, making it simple to calculate the walking time.
The resolution of the New Jersey case marks a significant outcome for the workers involved, highlighting ongoing legal scrutiny over wage and hour practices in large-scale logistics operations.
