By: Bill Osterndorf
A recent settlement between Qdoba Restaurant Corporation and multiple applicants for employment shows the significance of pay transparency laws that have been instituted throughout the United States. The Qdoba settlement occurred in the State of Washington and was based on an alleged violation of Washington’s Wage and Salary Information law that came into effect on January 1, 2023. The case at issue, Moliga v. Qdoba Restaurant Corporation, remains open and there may be additional legal proceedings in this case.
The Moliga case was filed on June 27, 2023. The plaintiff, Destinee Moliga, filed a class action lawsuit against Qdoba Restaurant Corporation (Qdoba) alleging that the company had failed to comply with the State of Washington’s pay transparency law. That law requires that an “employer must disclose in each posting for each job opening the wage scale or salary range, and a general description of all of the benefits and other compensation to be offered to the hired applicant.” Moliga claimed that Qdoba in the State of Washington had failed to provide this information. Moliga asked for the following:
- Certification of her lawsuit as a class action
- Damages equal to the actual monetary damages suffered by plaintiffs to this action
- Costs associated with filing this action, including attorneys’ fees
- Injunctive relief required Qdoba to follow the Washington pay transparency law
- A declaration that Qdoba had in fact failed to follow the Washington pay transparency law
The Washington pay transparency law allows a successful plaintiff to collect a payment representing the actual damage to the plaintiff or $5,000, whichever is greater.
Rather than fully litigating this action, Qdoba decided to settle with the class associated with this lawsuit. On a website related to this case, the parties to the case have published a copy of the settlement agreement. That agreement states that Qdoba will pay a maximum of $3,800,000 to persons who are part of the class that may have been affected by Qdoba’s failure to follow the Washington pay transparency law. This includes $1,121,000 in attorney fees. Individuals who were potentially affected by Qdoba’s actions had been asked to complete a form by June 14, 2024, in order to share in the settlement.
The Qdoba settlement needs to be approved by the court that is overseeing this matter. There will be a settlement hearing on July 12, 2024. Should the court find problems with the settlement, the plaintiff and the remaining members of the class can continue the litigation.
The lawsuit against Qdoba shows the seriousness of the failure to follow pay transparency requirements. With the increasing number of state and local governments that have pay transparency laws, employers can face significant penalties for the failure to provide sufficient information on pay and benefits to job seekers. Employers should use resources such as DCI’s pay transparency tracker to ensure they are aware of what is required by various units of government.
