Judge Approves Settlement in Nordstrom Suit

Tens of thousands of former and current Nordstrom Inc. employees could receive as much as $4,000 each in back pay under a settlement approved Monday by a county court judge in Washington state.

Nordstrom said a $15-million reserve would cover settlement costs in the class-action lawsuit. But officials of United Food and Commercial Workers Local 1001 said the fashion retailer could end up paying out $30 million.

The union had contracts with six Seattle-area Nordstrom outlets when the suit was filed in 1990.

Estimates by union officials and lawyers of the total number of people expected to file claims under the settlement--approved by King County Superior Court Judge William L. Downing Jr.--ranged between 40,000 and 85,000.

Nordstrom said it would cover the union’s $6.6 million in legal fees from the suit.

In the suit, the union accused Nordstrom of failing to pay workers for work done “off the clock”--outside regular or reported overtime hours--restocking inventory, writing thank-you notes to customers and performing other duties.

Anyone who worked at least 200 hours for Nordstrom between Feb. 16, 1987, and March 15, 1990, is entitled to about 3% of the pay they received for regular hours during the period for a maximum of roughly $2,000 per employee, said James H. Webster, a union lawyer.

The settlement also covered overtime worked through last fall by commissioned sales representatives, whom the company claimed were exempt from overtime requirements, to a maximum of about $2,000 more, Webster said.