Bloomberg Law
Jan. 31, 2018, 1:47 PM UTC

Abercrombie Agrees to Pay $25M Over Staff Clothing Claims

Jon Steingart

Abercrombie & Fitch Co. agreed to pay $25 million to settle claims by retail employees who say their wages were diminished by a requirement to wear company apparel.

The Fair Labor Standards Act considers uniforms used for work a business expense to be covered by the employer. Some states, such as New York, require employers to either provide laundry service or reimburse the expense. Disputes arise when clothing can pull double duty as a work uniform and as ordinary attire.

The settlement would cover about 258,000 employees at Abercrombie & Fitch, Abercrombie Kids, Hollister, and Gilly Hicks stores in New ...

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