$4.6M Target Distribution Center Class Action Lawsuit Settlement for NJ Workers NJ Warehouse Workers Score $4.6M in “Stolen Time” Settlement
Target agreed to pay $4.6 million to resolve claims it failed to pay over 13,700 New Jersey distribution center employees for time spent walking before and after shifts at its massive warehouse facilities. Workers alleged Target violated the New Jersey Wage and Hour Law by not counting pre- and post-shift walking time as “hours worked,” depriving them of minimum wage and proper overtime pay.
🔔 CRITICAL SETTLEMENT INFORMATION – READ THIS FIRST
NO CLAIM FORM REQUIRED – If you’re eligible, you automatically get paid.
Official Settlement Website: 🌐 www.NJDistributionCenterSettlement.com
Who Gets Money: Workers employed as hourly, nonexempt progression team members at any Target distribution center in New Jersey between August 6, 2019, through the date of final court approval
How Much: Approximately $2.75 million will be distributed among eligible class members on a pro rata basis. Payment amounts vary based on how long you worked and your total hours.
Important Dates:
- Exclusion Deadline: February 13, 2026
- Final Approval Hearing: February 24, 2026
- Payment Distribution: After the court resolves any appeals and grants final approval
Contact Settlement Administrator:
- Website: www.NJDistributionCenterSettlement.com
- Mail: Sadler v. Target, Settlement Administrator, P.O. Box 2715, Portland, OR 97208-2715
- Phone: 1-888-840-4265
Tax Information: Payments will be subject to wage withholding and will result in a W-2 tax form. Class members may also receive a 1099 tax form for the non-wage portion of their payment.
What Target Did to Workers (The Allegations Explained)
The lawsuit centered on Target’s three New Jersey distribution centers in Bridgeport and other locations, which collectively span more than 2 million square feet.
Lead plaintiff Krystal Sadler, an hourly warehouse worker, described the daily routine:
Before Clocking In:
- Show ID at facility entrance
- Undergo mandatory pre-shift security screenings
- Walk long distances to work location
- Only then could workers clock in
After Clocking Out:
- Clock out before walking back
- Take lengthy walk to be screened again
- Finally leave the facility
One New York plaintiff in a similar case alleged it took her 8-10 minutes to walk from the entrance to her work area. Another said it took him 5-6 minutes. Multiply that by two (pre- and post-shift), times hundreds of shifts per year, and you’re looking at substantial unpaid time.
The core allegation: Workers spent significant time walking without any compensation for the time spent restricted within the premises.
The Legal Battle: Why This Case Matters
How the Lawsuit Started
The case began in November 2022 when Sadler sued Target in state court, accusing the retailer of violating New Jersey wage and hour laws. Target moved the case to federal court in January 2023, where class certification was granted in January 2025.
Case name: Sadler v. Target Corp., Case No. 1:23-cv-00030-CPO-SAK, U.S. District Court for the District of New Jersey
What Laws Target Allegedly Violated
The lawsuit hinged on New Jersey state law rather than federal law, which proved crucial.
Under the Fair Labor Standards Act (FLSA), time spent performing preliminary and postliminary activities generally is not paid time. The federal Department of Labor has advised that time spent walking to where one’s work is done is not paid time – unless a contract calls for payment or the time is treated as hours worked based on custom or practice.
But New Jersey law is different. Plaintiffs relied on a New Jersey law that specifically says “hours worked” includes all time that employers require workers to “be at his or her place of work”.
This distinction became the key to victory.
Target’s Defense
Target denied the allegations, particularly that the walking time was compensable. Target has not admitted any wrongdoing but agreed to settle to avoid the uncertainty and expense of further litigation.
In a similar New York case, Target argued the New York plaintiffs don’t have a claim because New York law and its corresponding regulations incorporate the FLSA, which doesn’t include as “hours worked” preliminary and postliminary activities, such as “walking … to and from the actual performance of the principal activity”.
Settlement Breakdown
The $4.6 million total settlement will be divided as follows:
- $2.75 million: Net settlement fund for eligible class members
- $1.53 million: Attorneys’ fees
- $10,000: Service award for lead plaintiff Krystal Sadler
The settlement covers about 13,700 warehouse team members. On average, that’s roughly $200 per worker before deductions, though actual payments will vary based on tenure and hours worked.
Counsel for the workers said the lawsuit was the first of its kind against Target, making this a groundbreaking case for warehouse worker rights.
How to Claim Your Money (Step-by-Step)
The good news: This is one of the easiest settlements you’ll ever participate in.
Official Website: www.NJDistributionCenterSettlement.com
Visit this website for:
- Complete settlement details and legal documents
- Confirmation of your eligibility
- Estimated payment amount
- Updates on settlement approval status
- Answers to common questions
Step 1: Verify Eligibility If you received a settlement notice addressed to you, you are a class member. The settlement administrator used Target’s payroll records to identify eligible class members and determine their payment amount. You can also check your eligibility at www.NJDistributionCenterSettlement.com.
Step 2: Do Nothing (Yes, Really) No claim form is required to benefit from the settlement. Class members who do not exclude themselves will automatically receive settlement benefits.
Step 3: Update Your Address If you’ve moved since working at Target, contact the settlement administrator immediately at 1-888-840-4265 or visit www.NJDistributionCenterSettlement.com to update your mailing address. Otherwise, your check might get lost.
Step 4: Wait for Payment The settlement administrator will issue payments after the court resolves any appeals and grants final approval of the settlement.
What If You Want Out? The deadline for exclusion and objection is February 13, 2026. To exclude yourself (opt out), you must submit a written request to the settlement administrator by this date. Why would you opt out? If you believe you have a stronger individual claim worth more than your settlement share.
Similar Cases: The Warehouse Worker Rights Movement
Target isn’t the only major retailer facing “stolen time” litigation. This settlement is part of a broader trend holding employers accountable for off-the-clock work.
Amazon’s Warehouse Screening Cases
Amazon has faced multiple class actions over security screening time. California workers successfully argued that time spent in mandatory security lines should be compensated.
Apple’s $30.4 Million Bag Search Settlement
In a 2022 settlement, a court approved a $30.4 million settlement agreement between Apple and a class of workers required to undergo off-the-clock bag searches. Prior to the settlement, the California Supreme Court found that under California law, time spent waiting for and undergoing bag searches is compensable as “hours worked” because the employees are still under Apple’s control.
This case set a powerful precedent that influenced the Target litigation.
Target’s New York Battle
Target is fighting similar claims in New York, according to a class-action lawsuit filed in August. The New York plaintiffs alleged that hourly workers at Target warehouses in Wilton and Amsterdam can’t clock in until after they enter the facility, swipe their employee badges for security purposes, and walk up to half a mile to their assigned departments.
However, New York’s incorporation of FLSA standards may make that case harder to win than the New Jersey lawsuit.
What This Means for Employment Law
This settlement sends shockwaves through the warehouse and retail industries. Here’s why it matters:
State Law Trumps Federal Law
When determining whether time spent performing preliminary and postliminary activities should be paid, it’s critical to look not only at federal law but applicable state law as well.
This case proves that state wage-and-hour laws can provide significantly stronger protections than the FLSA. Employers can’t simply rely on federal standards—they must comply with state laws that may be more worker-friendly.
“Place of Work” Definitions Expand
The key language in New Jersey’s Wage and Hour Law—that “hours worked” includes all time employers require workers to “be at his or her place of work”—has been interpreted broadly. Once you’re inside the facility and required to be there, you’re working, even if you haven’t clocked in yet.
Security Screening Time Is Compensable
Following the Apple precedent in California, more courts are recognizing that mandatory security procedures constitute work time. If an employer requires it and controls your time during it, you should be paid for it.
Walking Time in Large Facilities May Be Compensable
For warehouse workers in massive multi-million-square-foot facilities, the daily walking time adds up to substantial unpaid hours. This settlement acknowledges that reality and compensates workers accordingly.
What Employers Should Do Now
If you operate a warehouse, distribution center, or any large facility requiring employees to walk significant distances or undergo security screenings, take immediate action:
Audit Your Timekeeping Practices Review when employees clock in and clock out relative to when they enter and exit the facility. Calculate the average walking time and screening time.
Consider Policy Changes Options include:
- Installing time clocks at facility entrances rather than at work stations
- Compensating employees for pre- and post-shift activities
- Redesigning facilities to minimize walking distances
- Providing transportation within facilities
Review State Laws Don’t assume federal FLSA standards protect you. Many states have stronger wage-and-hour laws. Consult with employment law counsel in every state where you operate.
Document Everything If challenged, you’ll need records showing:
- Typical walking times and distances
- Security screening procedures and duration
- Timekeeping policies and practices
- Any compensation already provided for these activities
What Workers Should Know About Your Rights
Beyond this specific settlement, warehouse workers should understand their broader legal protections:
Federal Protections (Limited but Important)
The FLSA requires:
- Payment of at least federal minimum wage ($7.25/hour, though many states have higher minimums)
- Overtime pay (1.5x regular rate) for hours over 40 per week for non-exempt employees
- Accurate recordkeeping of hours worked
New Jersey State Protections (Much Stronger)
New Jersey’s Wage and Hour Law provides:
- State minimum wage (currently $15.13/hour for most employees as of 2025)
- Stricter definitions of “hours worked”
- Enhanced enforcement mechanisms
- Private right of action (you can sue directly)
Other Common Wage Theft Issues in Warehouses
Watch for:
- Off-the-clock work: Being told to start tasks before clocking in or complete tasks after clocking out
- Unpaid breaks: Breaks that are interrupted or not truly “free from duties”
- Improper rounding: Time clock systems that always round in the employer’s favor
- Misclassification: Being classified as “independent contractor” or “exempt” when you should be an employee entitled to overtime
How to Protect Yourself
Keep Your Own Records Note your actual arrival and departure times, including:
- When you enter the facility
- When you clock in/out
- When you leave the facility
- Any work performed off the clock
Take photos of time cards and pay stubs. This documentation is invaluable if you later need to file a claim.
Know Your Right to Complain
It’s illegal for employers to retaliate against you for:
- Filing a wage claim
- Complaining about wage-and-hour violations
- Participating in an investigation or lawsuit
- Discussing pay with coworkers
If you experience retaliation, you may have an additional legal claim.
File Complaints Promptly
New Jersey has a two-year statute of limitations for wage-and-hour claims (six years for willful violations). Don’t wait—evidence disappears and memories fade.
You can file complaints with:
- New Jersey Department of Labor and Workforce Development
- U.S. Department of Labor Wage and Hour Division
- Private employment attorneys (many work on contingency, meaning no upfront costs)
What Happens Next in This Case
The settlement still requires final court approval. Here’s the timeline:
Now Through February 13, 2026: Deadline for exclusion and objection. Class members who want to opt out or object to the settlement must act by this date.
February 24, 2026: Final approval hearing. The judge will review objections, evaluate the fairness of the settlement, and decide whether to grant final approval.
After Final Approval: The settlement administrator will issue payments after the court resolves any appeals and grants final approval.
Realistically, payments will likely arrive sometime in spring or summer 2026, assuming no major objections or appeals.
Frequently Asked Questions
Q: I worked at a Target warehouse in NJ but never received a settlement notice. Am I still eligible?
A: Possibly. The settlement administrator used Target’s payroll records to identify eligible workers. If you meet the criteria (hourly, nonexempt progression team member employed since August 6, 2019), contact the settlement administrator immediately at 1-888-840-4265 or visit www.NJDistributionCenterSettlement.com to verify your eligibility.
Q: What if I worked at multiple Target distribution centers in NJ during the class period?
A: You’re still covered by a single settlement, but your payment amount should reflect your total time worked at all NJ facilities.
Q: Will this settlement affect my current employment at Target?
A: No. Participating in the settlement does not jeopardize your job, and retaliation is illegal. If you experience any negative consequences, contact an employment attorney immediately.
Q: Can I opt out and sue Target separately?
A: Yes, but you must submit a written exclusion request by February 13, 2026. Consider whether your individual damages would likely exceed your settlement share. Most workers are better off accepting the settlement.
Q: What if Target already paid me for some of this time?
A: The settlement amount already accounts for any payments Target made. You won’t be double-compensated, but you also won’t be penalized.
Q: I worked at a Target store, not a distribution center. Am I eligible?
A: No. This settlement covers only distribution center workers. Store employees are not included.
Q: Do I have to pay taxes on my settlement payment?
A: Yes. Payments will be subject to wage withholding and will result in a W-2 tax form. Class members may also receive a 1099 tax form for the non-wage portion of their payment. Treat this as income when filing your 2026 tax return.
Q: How much will I personally receive?
A: Payment amounts vary based on how long you worked and your total hours. The settlement administrator used Target’s payroll records to determine payment amounts. Contact them at 1-888-840-4265 for your specific amount.
Q: What if I disagree with the amount I’m supposed to receive?
A: You can object to the settlement by February 13, 2026, explaining why you believe the calculation is incorrect. Include documentation supporting your position.
Q: Can I still work at Target after receiving this settlement?
A: Absolutely. Receiving the settlement does not affect your employment status or eligibility for rehire.
Q: What happens if Target doesn’t pay the settlement?
A: Once the court approves the settlement, it becomes a legally binding court order. Target must pay or face contempt of court charges. The settlement administrator oversees compliance.
Q: I moved since working at Target. How do I update my address?
A: Call the settlement administrator at 1-888-840-4265 or write to: Sadler v. Target, Settlement Administrator, P.O. Box 2715, Portland, OR 97208-2715.
Q: What if I don’t cash my settlement check?
A: Most settlement agreements have “stale check” policies. Uncashed checks are typically void after 90-180 days. If you miss the deadline, you may forfeit your payment, so cash it promptly.
Q: Are other warehouse jobs subject to similar lawsuits?
A: Yes. Amazon, Walmart, FedEx, UPS, and many other warehouse employers face similar litigation. If you experience unpaid walking time or security screening time at any warehouse job, document it and consult an employment attorney.
The Bigger Picture: Warehouse Worker Rights in 2025
This settlement represents a pivotal moment in the ongoing battle for warehouse worker rights. As e-commerce explodes and warehouse jobs proliferate, these legal protections become increasingly vital.
The Growth of Warehouse Employment
The U.S. Bureau of Labor Statistics reports explosive growth in warehouse and distribution center employment. These facilities have become larger, more automated, and more demanding—but wage-and-hour protections haven’t kept pace.
The Walking Time Problem
Modern distribution centers can span millions of square feet. At Target’s NJ facilities alone, the three centers collectively span over 2 million square feet. Walking from entrance to workstation and back can consume 15-20 minutes daily—over 80 hours per year of unpaid time.
Multiply that by millions of warehouse workers nationwide, and you’re looking at billions of dollars in wage theft.
The Security Screening Issue
Post-9/11, many employers implemented extensive security screening procedures. Workers must empty pockets, pass through metal detectors, submit bags for inspection, and wait in line—all off the clock.
The Apple settlement and now this Target case establish that such practices are increasingly unacceptable, at least in states with strong wage-and-hour laws.
Technology as a Solution
Some employers are implementing solutions:
- Mobile timekeeping apps: Allow workers to clock in upon facility entry via smartphone
- Automated time tracking: RFID badges or facial recognition that automatically record when workers enter and exit
- Facility redesign: Placing workstations closer to entrances to minimize walking time
- Paid security screening time: Simply compensating all workers for these activities
These approaches benefit everyone—workers get paid fairly, and employers avoid costly litigation.
What This Settlement Means for You
If you’re an eligible class member, here’s your action plan:
Immediate Actions:
- Visit www.NJDistributionCenterSettlement.com for complete details
- Check your mail for the official settlement notice
- Verify the settlement administrator has your current address (call 1-888-840-4265 or update online)
- Mark February 13, 2026, on your calendar (exclusion deadline)
- Mark February 24, 2026, on your calendar (final approval hearing)
- Keep records of your Target employment (pay stubs, W-2s, etc.)
If You Have Questions:
- Visit: www.NJDistributionCenterSettlement.com
- Call: 1-888-840-4265
- Write: Sadler v. Target, Settlement Administrator, P.O. Box 2715, Portland, OR 97208-2715
The settlement administrator can:
- Confirm your eligibility
- Update your address
- Estimate your payment amount
- Explain the exclusion process
If You Want to Object: Prepare a written objection explaining why you believe the settlement is unfair, with supporting documentation. File it with the court and serve it on the attorneys by February 13, 2026.
After Final Approval: Watch your mail for your settlement check in spring/summer 2026. Cash it promptly.
The Bottom Line
The $4.6 million Target distribution center settlement represents a significant victory for New Jersey warehouse workers and sets important precedents for employment law nationwide.
Key takeaways:
- Over 13,700 Target warehouse workers will share in the settlement
- No claim form is required—payments are automatic
- Critical deadline: February 13, 2026, for exclusions/objections
- State wage-and-hour laws can provide stronger protections than federal law
- Warehouse employers must carefully review timekeeping practices
- Workers should document actual hours worked, including off-the-clock time
This lawsuit reminds employers that when determining whether time spent performing preliminary and postliminary activities should be paid, it’s critical to look not only at federal law but applicable state law as well.
For the thousands of Target warehouse workers affected, this settlement means compensation for time that should have been paid all along. For the broader warehouse industry, it’s a wake-up call: pay workers for all time you control, or face the legal consequences.
This article is for informational purposes only and does not constitute legal advice. If you have questions about your rights under this settlement or other employment law matters, consult with a qualified employment attorney in your state.
About the Author
Sarah Klein, JD, is a licensed attorney and legal content strategist with over 12 years of experience across civil, criminal, family, and regulatory law. At All About Lawyer, she covers a wide range of legal topics — from high-profile lawsuits and courtroom stories to state traffic laws and everyday legal questions — all with a focus on accuracy, clarity, and public understanding.
Her writing blends real legal insight with plain-English explanations, helping readers stay informed and legally aware.
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