Iconic brand Abercrombie & Fitch Co. is having a rough start to 2018. The label is currently close to ending a class-action lawsuit at the cost of 25 million dollars over worker issues.
The employers are now required to reimburse employees that are required to purchase a work uniform, according to WWD. Last Friday, approximately 260,000 current and former employees of Abercrombie and Hollister alleged that the retailer forced them to buy branded apparel to wear at work without reimbursement. The employees affected by this class-action lawsuit date back to those working in 2013 until now.
Regarding these allegations, a company spokeswoman told the publication, “Abercrombie strongly contests the allegations, however, it believes it is in the best interest of the company and all its stakeholders, including its employees, to settle this matter.”
The settlement agreement will ultimately result in 25 million dollars towards a worker payment fund. Out of this total, approximately 8.5 million will go towards legal fees and 16.68 million dollars will remain for disbursements. While the company still disregards the validity of these allegations, it seems Abercrombie is willing to pay its dues and move forward.