Apple to Pay $30 Million in Bag Search Settlement

Apple Proposes $30 Million Settlement in Employee Search Lawsuit

California’s highest court previously determined that Apple violated labor laws by not compensating employees during required bag and iPhone inspections. Consequently, Apple has now presented a $30 million settlement offer to resolve the legal action. Legal representatives for the employees are recommending acceptance of this proposal, as reported by Apple Insider.

Origins of the Legal Dispute

The lawsuit was initially filed in 2013. Employees alleged they were not paid for the time spent undergoing searches for potentially stolen goods or confidential company information.

The workers maintained that, during these searches – which could last between five and twenty minutes – they remained under Apple’s direction and should have been remunerated accordingly. Apple countered by asserting that employees had the option to avoid searches altogether by simply not bringing bags or personal iPhones to work.

Court's Reasoning

The court challenged Apple’s stance regarding the necessity of iPhones for its workforce. Judges pointed out a contradiction between Apple’s claim that iPhones aren’t essential for employees and its marketing portraying the iPhone as indispensable.

The ruling specifically referenced a 2017 interview with Tim Cook, where he described the iPhone as “so integrated and integral to our lives” that leaving home without it is unthinkable.

Settlement Details and Potential Payouts

The proposed settlement requires approval from the plaintiffs. Approximately 12,000 current and former Apple Store employees in California who are part of the lawsuit could receive up to $1,200 each.

Attorney Lee Shalov, representing the plaintiffs, described the settlement as “a significant, non-reversionary settlement reached after nearly eight years of hard-fought litigation,” according to documents reviewed by Courthouse News.

Note: This report was originally published on Engadget.