California court orders Apple pay $2M to retail workers

Dive Brief:

The California State Superior Court in San Diego on Wednesday ruled in favor of Apple Store employees who had sued the electronics giant on grounds that it violated state law requiring meal and rest breaks, itemization of their paychecks, timely issuance of some paychecks of departing workers and other violations, according to court documents.
State law requires minimum 30-minute meal break for a work period of more than five hours, and a minimum 10-minute rest break for every four hours worked. The $2 million verdict will go to some 21,000 current and former Apple employees, translating to some $95 per class action participant, though legal fees will dent that further.
In the lawsuit, originally filed in 2011, plaintiffs also noted Apple’s code of secrecy hampered their ability to fight for their rights under state law. "The restriction from discussing anything about Apple or its policies is reinforced on Apple's labor policies themselves," according to the complaint. "The majority, if not all, of Apple's employment policies make it clear that Plaintiffs aren't allowed to discuss Apple's working conditions."

Dive Insight:

The fiscal fourth quarter saw Apple treading water, in part because it hasn’t wowed consumers with innovative products. Sales in China alone were down 30% from a year earlier. Sales of services like Apple Pay, the App Store and Apple Music were a bright spot, however, rising 24% over year-ago figures.

But few analysts believe the setbacks are anything but minor, considering the overall strength of the company’s business. “Even with the dips in growth it remains a phenomenally successful business that is far from running out of steam,” Conluminio CEO Neil Saunders wrote in an October email to Retail Dive. “That said, there is a complexity creeping into the firm that runs counter to Apple’s underlying philosophy of simplicity.”

That philosophy extends to its stores, which have long stood out, with clean, well-lit spaces and a knowledgeable, helpful staff. In fact, Apple stores kick up sales by 10% in the malls where they’re located, according to research last year by real estate company Green Street Advisors.

Despite the fact that the plaintiffs in this case have won a largely moral victory, considering the small per-plaintiff payout, the judgment nevertheless indicated that things may not be so simple. Apple’s retail workers have long had a credo, which MacRumors notes reflects Apple’s mission to help people become their best selves:

“We are here to enrich lives. / To help dreamers become doers, / to help passion expand human potential, / to do the best work of our lives,” the new credo reads in part, according to MacRumors. “We give more than we take / From the planet, / to the person beside us. / We become a place to belong / where everyone is welcome. / Everyone.”