CLEVELAND, OHIO — Ohio Federal Judge Sara Lioi approved the settlement between Fresh Mark Inc. and its employees, in which the meat processor agreed to pay $3.7 million to resolve claims of failure to pay overtime.

Employee Antoine McElroy filed the class action lawsuit in February 2022 with the Northern District of Ohio Court, Eastern Division, on behalf of himself and employees similarly situated to him, alleging that Fresh Mark violated the Fair Labor Standards Act and the Ohio Minimum Fair Wage Standards Act.

McElroy was employed at Fresh Mark between May 2006 and July 2021 as a machine operator at the Canton, Ohio, production plant. In the complaint, McElroy said he worked an average of 40-60 hours per week and was paid at an hourly rate.

He added that employees were not compensated for time spent pre- and post-shift changing in and out of protective gear.

“As a result of Defendant’s practices and policies, Plaintiff and other similarly situated production employees were not compensated for all of the time they worked, including all of the overtime hours they worked over 40 each workweek,” according to the complaint.

Fresh Mark denied the allegations, the court documents said.

After multiple meetings with a mediator, the parties agreed to a settlement, which was filed Oct. 13. The eligible settlement participants consisted of over 7,500 individuals.

As part of the agreement, McElroy will receive a payment of $20,000 as the lead plaintiff. Fresh Mark will cover $1.2 million in attorneys’ fees, $8,054.50 for the mediator’s cost and $45,500 for the cost of settlement administration through Simpluris.

On Oct. 30, Lioi granted the joint motion for approval of the settlement, writing, “The Court agrees with class counsel that this is a fair and adequate compromise of the disputed claims.”

"Eligible current and former employees (January 22, 2019-December 31, 2022) will receive an official court-supervised notice encouraging them to opt-in to the suit," Fresh Mark told MEAT+POULTRY. "Once they opt-in, they will be eligible to review and receive the payouts based on their weeks of employment with the company. 

"Fresh Mark has been a part of the local community for more than 100 years.  We are proud of our diverse workforce, and we stand firmly behind our employee practices and procedures."

This article has been updated to include a statement from Fresh Mark.