Traeger Faces TWO Major Lawsuits, $1.5M Wood Pellet Settlement + 70 Workers Sue Over Wages
Traeger is fighting two significant lawsuits—a $1.5 million wood pellet settlement that received final approval April 2, 2025, and a growing class action from 70 brand ambassadors claiming wage violations filed October 2025. The pellet case alleged false advertising of mesquite and hickory wood pellets that contained cheaper wood with flavored oils, while brand ambassadors claim Traeger pays them using a commission formula that violates federal minimum wage and overtime laws.
Both lawsuits emerge as Traeger’s stock plummeted from over $31 per share to about 78 cents and the company implements massive restructuring to cut $30 million in costs.
The Wood Pellet False Advertising Settlement
The Traeger wood pellet settlement covers all consumers who bought Traeger wood pellets in California or Utah after October 1, 2015—more than 180,000 people over four to nine years.
California resident Michael Yates filed the lawsuit in 2019 alleging bags of wood pellets didn’t contain the type of wood advertised. He bought mesquite and “Texas Beef” blend pellets, but the food didn’t taste like those woods. When he called customer service, Yates was told the pellets consisted of 100% alder or oak with mesquite oil added for flavoring.
The lawsuit claimed Traeger’s mesquite and hickory pellets were made of cheaper wood infused with flavored oils to simulate mesquite and hickory flavor on grilled foods. This allegedly allowed Traeger to charge premium prices for less expensive products.
Settlement Terms & Consumer Compensation
Class members receive $3 coupons for Traeger wood pellets, attached to pellet bags or available on shelves in California and Utah stores.
Settlement Breakdown:
- $750,000 allocated for coupon distribution
- $530,000 for attorney’s fees
- $185,000 for litigation costs
- $25,000 for administrative costs
- $10,000 for class representative service awards
Coupons remain valid until July 30, 2026. No claim form is required—class members automatically receive settlement benefits at participating Home Depot, Ace Hardware, Kroeger, and Albertsons locations.
Customers in other states including Oregon won’t get any benefit from the settlement because the lawsuit only certified classes in Utah and California.
What Traeger Changed After The Lawsuit
Since the lawsuit was filed, Traeger changed branding on bags to remove “100% foodservice hardwood pellets” and include “natural flavored hardwood”.
As part of the settlement, Traeger agreed to cease using the allegedly deceptive packaging at issue in the amended class action lawsuit.
Industry insiders explain the manufacturing reality: Since Traeger’s pellet plants are in the Northwest and hickory grows in the Southeast while mesquite grows in Texas, rather than transporting wood, they squeeze flavored juices out and transport that to facilities to flavor hardwood pellets.
The Brand Ambassador Wage Lawsuit Explained
70 former and current Traeger brand ambassadors have joined a proposed class action lawsuit filed in October 2025, claiming the company misclassified them as exempt employees to avoid paying minimum wage and overtime.
Aaron Cicero, who filed the lawsuit, spends up to 14 hours or more on his feet demonstrating Traeger grills at Costco stores across the country. Traeger pays him using a formula tied to sales amounts during road shows.
A single 10-day road show can mean more than 100 hours of work—including travel, setup, breakdown and shifts that often stretch past 14 hours a day.
Why Ambassadors Say Pay Violated Federal Law
Traeger is “presumably” classifying brand ambassadors as “outside sales” employees, which allows employers to avoid paying minimum wage or overtime under Fair Labor Standards Act exemptions.
But the lawsuit argues ambassadors don’t fit that exemption since it’s impossible for them to make a sale. Ambassadors focus on product promotion but don’t process purchases or handle transactions. “The road show booths do not have a way to process payment or actually sell any products”, the complaint states.
Aaron Vance, who worked as a brand ambassador from Tennessee for about seven years, said Traeger wasn’t open about how the commission formula was calculated. Sales goals were set differently for each employee before each roadshow, determining how much they earned.
Marco Lopez, a former brand ambassador from Oregon, said goals could be adjusted after an event, leaving workers waiting days to know what they’d earned. “I feel like I have other people that are controlling my income, and it was causing a lot of stress and my anxiety,” Lopez stated.
Traeger’s Financial Crisis Context
The lawsuits land during Traeger’s worst financial period since going public.
Traeger stock has plummeted from more than $31 per share when CEO Jeremy Andrus took the company public in 2021 to about 78 cents per share as of November 2025.
Revenue dropped 13.6% in the second quarter of 2025 compared to the same time last year, and the company saw a $7.4 million net loss.
Traeger is ending the once-signature Costco roadshows by year’s end and will stop selling directly to consumers on its website as part of a sweeping restructuring called “Project Gravity.”
Phase 1 of Project Gravity is expected to save $30 million, mainly from layoffs and consolidating operations.
The Company’s Controversial Retention Agreement
Cole VandenAkker, Traeger’s chief sales officer, said the company is offering retention and separation packages to encourage employees to continue through the end of the year.
The incentives are contingent on workers waiving “any claims” they “may have against the Company”, according to an October retention agreement shared with The Salt Lake Tribune.
This timing—offering waivers while facing a wage lawsuit—raises questions about whether Traeger anticipated legal action from brand ambassadors.
How Traeger’s Restructuring Impacts Workers
Traeger launched a significant restructuring plan to cut costs and boost profitability, approved by the company’s board in May 2025.
The company had already spent about $3.5 million on restructuring, mostly on severance and other staffing costs, according to quarterly filings ending June 30.
CEO Jeremy Andrus told brand ambassadors in October that roadshows had become “increasingly unprofitable” in recent years, accelerating after international tariffs were announced in April by President Donald Trump.
“Tariffs sort of were the last piece that really changed the financial profile of the program,” Andrus said on the call.
Other Traeger Legal Battles: Patent Disputes
Beyond consumer and employment lawsuits, Traeger has been aggressive in protecting intellectual property.
Traeger and Green Mountain Grills (GMG) settled a years-long lawsuit in January 2025 over allegations that GMG infringed on Traeger’s patents regarding connected grilling. The WiFi-enabled pellet grill dispute finally ended after numerous appeals.
Traeger also sued founder Joe Traeger and rival company Dansons when the Traeger family joined Dansons. A judge granted Traeger Grills a temporary injunction in October, banning Dansons from using the Traeger name and the Traegers from using their names for other companies. The Traeger Family agreed to a settlement with Traeger Grills on December 6, though litigation against Dansons continues.
What Traeger Customers Should Know
About the Wood Pellet Settlement: If you bought Traeger mesquite or hickory pellets in California or Utah after October 1, 2015, you automatically qualify for $3 coupons available through July 30, 2026. No claim form required.
About Current Products: Traeger changed packaging to indicate “natural flavored hardwood” instead of “100% hardwood” claims. The company uses flavored oils to add mesquite or hickory taste to base hardwoods like alder and oak.
About Quality Concerns: Some consumers report dissatisfaction. One user stated: “We bought a bag used it to smoke some ribs and they tasted like melted plastic. After researching found out the pellets are similar to wood fireplace starters and must of had too much wax/oil for smoking.”
Why The Wood Pellet Case Was Limited
Judge Bruce S. Jenkins of the District of Utah in 2020 dismissed the ability to seek “statutory damages” and the ability to certify a nationwide class.
But in 2023 the lawsuit was allowed to be certified for classes in Utah and California on behalf of about 180,000 people who purchased mesquite or hickory pellets in those states since 2015.
Traeger argued customers couldn’t establish entitlement to monetary relief under Utah and California law. The court partially agreed, limiting the case’s scope significantly.
Industry Impact & Consumer Protection
The Traeger pellet lawsuit exposes widespread practices in the wood pellet industry. Many pellet manufacturers use similar practices, with the argument stemming from claims of “100% mesquite hardwood” versus “100% hardwood / mesquite” when other hardwoods and flavored oils are involved.
The wage lawsuit raises questions about how companies classify promotional workers. If ambassadors successfully prove they don’t qualify for the outside sales exemption, it could impact how retail demonstration workers are paid industry-wide.
Traeger’s Defense Strategy
On the pellet lawsuit: Traeger denied all claims and wrongdoing but agreed to the $1.5 million settlement to avoid further litigation costs.
On the wage lawsuit: Traeger has not issued a public statement about the brand ambassador claims. The company is ending the Costco roadshow program entirely by December 2025, potentially mooting future claims while leaving past wage violations unresolved.
Company History & Ownership Changes
Traeger Pellet Grills was founded by Joe Traeger in Mt. Angel, Oregon in 1985. He patented the cooking technology and the company sold its first commercial wood pellet grill in 1988.
Joe Traeger and sons Randy, Mark and Brian sold the company in 2006 to a private equity firm for $12.4 million. The company started manufacturing grills in China in 2010.
In 2014, Traeger was sold to Jeremy Andrus and private equity firm Trilantic Capital Partners. That year, it announced moving headquarters to Salt Lake City and closed all Oregon operations in 2016.
The company had gross revenues of $605.9 million in 2023, including $114.9 million in consumables like wood pellets, rubs, brines and barbecue sauces.
What Happens Next With Both Lawsuits
Wood Pellet Case: Settlement is finalized. Coupons available through July 30, 2026.
Wage Case: Still in early stages with 70 plaintiffs joined. Discovery will determine whether ambassadors were properly classified as exempt employees and whether their commission-based pay violated minimum wage and overtime laws.
The wage lawsuit timing—filed just as Traeger ends the entire roadshow program—means some workers may have lost their jobs before receiving any compensation if the lawsuit succeeds.
Legal Lessons From Traeger Cases
For Manufacturers: “Natural flavored hardwood” offers better legal protection than “100% [specific wood]” claims when using flavor additives. Clear packaging language prevents false advertising allegations.
For Employers: Commission-based pay structures must still comply with minimum wage and overtime laws. The “outside sales” exemption requires workers to actually close sales, not just demonstrate products.
For Consumers: Read fine print carefully. Terms like “naturally flavored” may indicate flavor additives rather than the wood species itself.
FAQ: Traeger Lawsuit
Is there a Traeger lawsuit settlement?
Yes. Traeger settled a wood pellet false advertising lawsuit for $1.5 million with final approval on April 2, 2025. The settlement covers California and Utah customers who bought mesquite or hickory pellets after October 1, 2015. Class members receive automatic $3 coupons valid through July 30, 2026.
What was the Traeger wood pellet lawsuit about?
Michael Yates filed a lawsuit in 2019 claiming Traeger sold mesquite and hickory pellets that actually contained cheaper alder or oak wood with flavored oils added, not the premium woods advertised. When he called customer service, he was told pellets were 100% alder or oak with mesquite oil for flavoring.
Is there a class action lawsuit against Traeger for wages?
Yes. In October 2025, brand ambassador Aaron Cicero filed a lawsuit claiming Traeger misclassified ambassadors as exempt employees to avoid paying minimum wage and overtime. 70 current and former ambassadors have joined the proposed class action, alleging they worked 14-hour days during 10-day road shows but were paid only on commission.
How do I get my Traeger settlement money?
No claim form is required. If you bought Traeger mesquite or hickory pellets in California or Utah stores or online after October 1, 2015, you’ll automatically receive $3 tear-off coupons attached to pellet bags or displayed on shelves at participating Home Depot, Ace Hardware, Kroeger, and Albertsons locations. Coupons are valid through July 30, 2026.
Did Traeger admit wrongdoing in the pellet lawsuit?
No. Traeger denied all claims and denied any wrongdoing but agreed to the $1.5 million settlement to avoid the costs and risks of continuing litigation. As part of settlement terms, Traeger changed packaging to remove “100% foodservice hardwood pellets” language and now uses “natural flavored hardwood.”
Why are brand ambassadors suing Traeger?
Ambassadors claim Traeger classified them as “outside sales” employees exempt from minimum wage and overtime laws, but they don’t actually close sales—they only demonstrate products while Costco processes all transactions. They were paid using a formula tied to sales amounts, with goals sometimes adjusted after events, leaving workers uncertain about earnings.
Will the Traeger wage lawsuit succeed?
The case is in early stages. Success depends on whether courts find ambassadors were misclassified and whether their commission structure violated Fair Labor Standards Act requirements for minimum wage and overtime pay. The fact that ambassadors don’t process sales or close transactions strengthens their argument that the outside sales exemption doesn’t apply.
Legal Disclaimer: This article provides legal information about the Traeger lawsuits based on verified court documents, court filings, news sources, and legal analysis current as of the publication date. It is for educational purposes only and does not constitute legal advice. For specific legal advice regarding similar cases, please consult with a qualified attorney. Always verify current case status and legal developments through official court resources.
Last Updated: November 2025 | Case Nos.: Yates v. Traeger Pellet Grills LLC, 2:19-cv-00723-DBP (D. Utah); Cicero v. Traeger Pellet Grills LLC (pending)
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.
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