Whole Foods Must Defend Claims About Incentive Program

Whole Foods Market Group Inc. must defend itself against claims that it denied employees in several states bonuses they were due under a company “gainsharing” program, a federal court in Washington ruled.

Employees alleged that managers manipulated the program by shifting labor costs and altering employee time records. Whole Foods admitted the improper practices but claimed they only occurred at nine of the company’s 457 stores. The employees alleged in their lawsuit that Whole Foods tried to “buy peace” by offering “small sums” to workers, but they filed a proposed class action against the grocery company.

The court hasn’t yet ruled on their proposal that the lawsuit be handled as a class action on behalf of ...