Walgreens Employee $2.5M Final Paycheck Settlement, Are You Eligible for Automatic Payment?

Walgreen Pharmacy Services Midwest LLC, Walgreen Pharmacy Services Eastern LLC, and Walgreen Pharmacy Services Western LLC agreed to pay $2,500,000 to settle a class action lawsuit alleging they failed to provide former employees with their final paychecks in a timely manner, in violation of Oregon wage payment laws. Walgreens employees terminated between April 6, 2018, and April 6, 2021, who received their final paycheck six or more days late may be eligible for an automatic pro-rata cash payment — no claim form required. The opt-out deadline is May 8, 2026.

Quick Facts

Current Status & What Happens Next

• On February 10, 2026, Judge Michael W. Mosman of the U.S. District Court for the District of Oregon entered a preliminary approval order for the $2,500,000 settlement.
• Class members must file any exclusion request or objection before May 8, 2026. The court will hold a Final Settlement Approval Hearing on August 4, 2026, at 10:00 a.m. Pacific Time.
• The settlement administrator will issue payments to eligible class members approximately 50 days after the court grants final approval of the settlement — no action is required from class members to receive their payment.

What Is the Walgreens Paycheck Lawsuit About?

The class action lawsuit alleged that Walgreen Pharmacy Services Midwest LLC, Walgreen Pharmacy Services Eastern LLC, and Walgreen Pharmacy Services Western LLC failed to provide timely final paychecks to certain former employees after termination, in violation of Oregon wage payment laws, specifically Oregon Revised Statutes (ORS) 652.140 and ORS 652.150.

Oregon wage law sets strict deadlines for final paycheck delivery. Under ORS 652.140, when an employer terminates an employee, the employer must pay all wages due and owing to that employee by the end of the next business day after termination. If an employee quits with at least 48 hours’ notice, excluding weekends and holidays, the employer must pay all wages owed on the employee’s final day of work.

Plaintiff Taylor Lemons filed the original lawsuit on April 6, 2021, alleging Walgreens routinely failed to meet Oregon’s final paycheck deadlines. On July 1, 2024, Judge Mosman certified the class, appointing Lemons as class representative and Carl Post and the attorneys at the Law Offices of Daniel Snyder as class counsel. Walgreens denies all allegations but agreed to settle the case to avoid the cost and uncertainty of continued litigation.

Related article: $5.25M Cadence Bank MOVEit Data Breach Settlement, Are You Eligible to Claim?

Who Is Eligible for a Payment?

The court certified a class consisting of all employees of Walgreens who were terminated between April 6, 2018, through April 6, 2021; who did not abandon or walk off their job; and who received their final paycheck six or more days after their termination date.

• You may qualify if Walgreens terminated your employment at any point between April 6, 2018, and April 6, 2021.
• You may qualify if you received your final paycheck six or more days after the date your employment ended.
• You may qualify if you worked for any of the three Walgreens pharmacy services entities — Midwest, Eastern, or Western — during the class period.
• You may not qualify if you voluntarily quit, abandoned your position, or walked off the job — only employees whose employment was terminated by Walgreens are covered by this settlement.
• You may not qualify if you received your final paycheck within five days of your termination date.
• Class members who do nothing will remain in the settlement and receive an automatic payment. The only action required is to opt out by May 8, 2026 if you want to preserve your right to sue Walgreens separately.

How Much Can You Receive?

Eligible class members will receive a pro-rata cash payment from the net settlement fund. The settlement administrator will determine the final payment amount based on the total number of class members who do not opt out and the number of days Walgreens delayed each class member’s final paycheck. All settlement payments will also include 9% statutory interest.

Class members who experienced longer delays in receiving their final paycheck will receive proportionally larger payments than those whose paychecks arrived only slightly past the six-day threshold. The exact per-person payment is TBD until the court grants final approval and the administrator calculates the total pool of valid class members.

Here is how the $2,500,000 fund will be distributed:

The 9% statutory interest rate under Oregon law means class members who waited the longest for their final paychecks — and whose claims therefore stretch further back in time — may receive meaningfully more than base pro-rata share alone would suggest.

How to Receive Your Payment

⭐ Important: Unlike most class action settlements, no claim form is required in this case. If you are an eligible class member, the settlement administrator will automatically mail a paper check to the address it has on file for you.

Step 1 — Confirm your eligibility. You must have been a Walgreens employee terminated between April 6, 2018, and April 6, 2021, who did not walk off the job and whose final paycheck arrived six or more days late.

Step 2 — Check your mailing address. The settlement administrator mails paper checks to the address on file. If your address has changed since your employment ended, update it immediately by contacting the settlement administrator.

Step 3 — Contact the settlement administrator to update your information: Walgreen Pharmacy Services Settlement, P.O. Box 4170, Portland, OR 97208-4170 | (877) 557-7786 | [email protected].

Step 4 — Visit WalgreenPharmacyServicesSettlement.com to review your rights and the full settlement terms.

Step 5 — If you want to opt out of the settlement and preserve your right to sue Walgreens separately, you must file your exclusion request before May 8, 2026. Instructions for opting out are available on the official settlement website.

Step 6 — If the court grants final approval on August 4, 2026, and no appeals are filed, expect your check to arrive approximately 50 days later — around late September or October 2026.

Estimated time to complete: 5 minutes (address update only — no claim form to fill out).

Important Deadlines & Dates

Frequently Asked Questions

Do I need to file a claim form to receive my payment?

 No — and this is the most important thing to know about this settlement. Class members do not need to file a claim to receive their payment. The settlement administrator will mail paper checks to the address on file with the settlement administrator. The only action you may need to take is to update your mailing address if it has changed since your Walgreens employment ended.

Is this settlement legitimate? 

Yes. The case, Taylor Lemons v. Walgreen Pharmacy Services Midwest LLC, et al., Case No. 3:21-cv-00511, is pending before Judge Michael W. Mosman in the U.S. District Court for the District of Oregon, and the court entered a preliminary approval order on February 10, 2026. The official settlement website is WalgreenPharmacyServicesSettlement.com. Always use only that official website before submitting any personal information.

When will I receive my payment? 

The settlement administrator will issue payments to eligible class members approximately 50 days after the court grants final approval of the settlement. The Final Approval Hearing is August 4, 2026, so payments are expected to arrive in late September or October 2026, assuming no appeals delay distribution.

What if I missed the claim deadline? 

There is no claim deadline because no claim form is required. However, if you want to opt out of the settlement and preserve your right to sue Walgreens separately, you must submit your exclusion request by May 8, 2026. Missing that opt-out deadline means you remain in the settlement class, release your claims, and receive whatever automatic payment the administrator calculates.

Will this settlement payment affect my taxes?

 Wage-related settlement payments — particularly those tied to late paycheck claims with statutory interest — may be treated as ordinary income or back wages by the IRS, which may require tax withholding. The settlement administrator may issue a W-2 or 1099 form depending on the nature of each payment. Consult a qualified tax professional for advice on your individual situation.

What Oregon law did Walgreens allegedly violate?

 The lawsuit alleged violations of Oregon Revised Statutes ORS 652.140 and ORS 652.150, which govern the timely payment of wages upon termination of employment. Oregon law requires employers to pay all wages due by the end of the next business day after termination for involuntarily terminated employees. Employers who violate these deadlines face penalty wages — sometimes called “waiting time penalties” — of up to 30 days’ additional wages for each day the final paycheck is late.

I no longer live at the address Walgreens had on file. What should I do? 

Contact the settlement administrator immediately to update your address. Reach Rust Consulting at (877) 557-7786 or email [email protected]. Checks mailed to an outdated address may be undeliverable, causing you to miss your automatic payment. Updating your address before the final approval hearing on August 4, 2026 is strongly recommended.

How does this settlement relate to my rights as a worker in other states? 

Oregon’s final paycheck laws are among the strictest in the United States, with penalty wages of up to 30 days of additional pay for late payments. If you have experienced similar late or missing final paycheck issues at another employer in a different state, you may have separate legal options. Our guide on how to file a wage and hour complaint explains the federal and state processes available to workers across the country. Separately, if you have experienced broader paycheck deductions or wipeouts at any employer, our resource on paycheck wipeouts and illegal deductions explains your rights under federal and state wage laws.

Sources & References

• Official Settlement Website (Rust Consulting): WalgreenPharmacyServicesSettlement.com
• Bloomberg Law — Preliminary Approval Granted (February 10, 2026): news.bloomberglaw.com
• Law360 — Walgreens Workers Snag $2.5M Deal (January 16, 2026): law360.com
• Justia Docket — Lemons v. Walgreen Pharmacy Services Midwest, LLC, 3:21-cv-00511 (D. Or.): law.justia.com
• Oregon Revised Statutes — ORS 652.140 (Final Paycheck Law): oregonlegislature.gov

Last Updated: March 11, 2026

Disclaimer: This article is for informational purposes only and does not constitute legal advice. Legal claims and outcomes depend on specific facts and applicable law. For advice regarding a particular situation, consult a qualified attorney.

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.
Read more about Sarah