Lumberyard Food Hall in Pullman has agreed to a $190,000 class action settlement with former employees who filed suit in 2019 over alleged wage theft, required break violations and other workplace complaints.
Court records state Lumberyard denied the allegations, but both sides filed to settle in late August to avoid further litigation. After closing in March 2020 amid the pandemic and going up for sale, Lumberyard re-opened this week under new management.
“While the Court has not decided that Lumberyard did, or did not do anything wrong,” an Aug. 26 legal notice states, “the parties have settled the matter as a class action, and the Court has given its preliminary approval of the settlement.”
Former Lumberyard employees Conor Holt and Thomas Lundstrom filed the class action lawsuit in December 2019, alleging that Lumberyard did not allow required rest breaks, failed to pay for all hours worked or overtime, did not pay out all tips and required staff to buy their own uniforms.
“[Lumberyard managers] knew that plaintiffs were not provided rest breaks or meal breaks and nonetheless continued to require and/or allow such practices to continue,” the lawsuit stated. “Defendants’ actions resulted in plaintiffs not being paid for all hours worked.”
The lawsuit was filed on behalf of all hourly employees from November 2018 through March 2019. A notice of settlement was filed in late August, outlining which former Lumberyard employees qualify for prorated compensation. Employees who object or want to be excluded should contact the attorneys.
Lumberyard owner Greg Petry and former general manager Jennifer Finau were both named in the lawsuit as individual defendants. Court records show Petry met with the former employees’ attorney in summer 2019 to explain how hours and breaks were tracked.
Whitman County Watch emailed Petry about the lawsuit in 2019 and Petry indicated he thought the matter had been put to rest after he met with the employees’ attorney to go through their books and discuss their policies.
“Certainly we have nothing to hide,” Petry wrote at the time, adding, “The claims are frivolous and without merit and we would plan to defend ourselves against them.”
Petry suffered a serious injury three months ago, leaving him physically and mentally incapacitated, according to court records. A guardian ad litem representative was assigned to take over his interests in the case.
Finau stated in court declarations that she tracked a number of employee work violations in a journal, but acknowledged she did not keep close track of meal or rest breaks. She wrote that on-the-clock meal charges suggest employees had appropriate breaks.
“I saw to it that [staff] took breaks. … Often, employees would take a few minutes off to make a phone call, have a smoke or grab a quick bite. … [These] were seldom — if ever — recorded,” she wrote, adding, “I never received a single complaint or heard of a complaint concerning any employee being denied meal breaks or rest breaks.”
Finau also stated she deducted hours from the plaintiffs’ pay based on alleged “cheating” of taking breaks without clocking out.
Former employees stated in attorney interviews that Lumberyard struggled with staffing issues and long shifts. Sometimes staff would get slammed with customers and could not take breaks. Sometimes shifts went long or stacked back-to-back. They also alleged Lumberyard deducted uniform costs from their pay and did not distribute tips fairly.
An attorney for Lumberyard did not respond to a request for comment. The former employees’ attorney has not yet provided a statement.
“[Both sides] engaged in extensive settlement negotiations in the spring and summer of 2021,” court records stated. “[Parties] have determined that the settlement set forth in this agreement is a fair, adequate, and reasonable settlement, and is in the best interest of all the class members.”
The total $190,000 settlement breaks out into $9,000 each for Holt and Lundstrom along with about $44,000 to pay out former employees for claimed tips, breaks and uniform expenses. Court records stated the remaining $128,000 will go to the plaintiffs’ attorneys.
Whitman County Superior Court Judge Gary Libey is scheduled to consider final approval of the settlement terms on Nov. 5.
Lumberyard first opened in fall of 2018 after about three years of development and construction. The space held a grand opening earlier this week to mark its reopening under new management.