📺 Stream EntrepreneurTV for Free 📺

Apple Ordered to Pay Employees for Time Lost to Bag Searches The company broke California's labor laws, the state's supreme court ruled.

By Steve Dent

entrepreneur daily

This story originally appeared on Endgadget

Associated Press via engadget

Apple broke the law in California by failing to pay employees while they waited for mandatory bag and iPhone searches, the state's supreme court has ruled. The fight began over six years ago, when Apple Store employees sued the company, saying they were required to clock out before being searched for stolen merchandise or trade secrets. The workers felt they were still under Apple's control during that five to 20 minute process and should therefore be compensated. Apple in turn argued that the employees could choose not to bring their bags or iPhones, thus avoiding a search in the first place.

Apple won an earlier battle in district court, but the case went to the California Supreme Court on appeal. There, the judges ruled that Apple workers were "clearly under Apple's control while awaiting, and during, the exit searches."

The court dismissed Apple's argument that bringing a bag to work was an employee convenience that shouldn't be subject to compensation. It particularly focused on the fact that Apple felt employees didn't necessarily need to bring their iPhones to work.

"The irony and inconsistency of Apple's argument must be noted," the judges wrote. "Its characterization of the iPhone as unnecessary for its own employees is directly at odds with its description of the iPhone as an 'integrated and integral' part of the lives of everyone else." (In that statement, the court referenced a 2017 Tim Cook interview where he stated that the iPhone was "so so integrated and integral to our lives, you wouldn't think about leaving home without it.")

The court decided that any lost employee wages must be paid retroactively back to July 25, 2009. The decision could apply to over 12,400 workers, according to Bloomberg. The case has now been kicked back to the Ninth Circuit appeals court to apply the ruling and decide on compensation, which could run as high as $60 million, according to previous evaluations. That court has also agreed to take on similar claims by Converse and Nike employees.

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Editor's Pick

Business News

Elon Musk Reveals His Tactics for Building Successful Companies, Including Sleeping Under His Desk and 'Working Every Waking Hour'

Musk shared the secrets on a podcast with Nicolai Tangen, CEO of the $1.6 trillion Norges Bank.

Business Ideas

63 Small Business Ideas to Start in 2024

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2024.

Starting a Business

Clinton Sparks Podcast: Offset's Journey From Hip-Hop to High Fashion and Entrepreneurship Success

This podcast is a fun, entertaining and informative show that will teach you how to succeed and achieve your goals with practical advice and actionable steps given through compelling stories and conversations with Clinton and his guests.

Business News

Jeff Bezos and Amazon Execs Used An Encrypted Messaging App to Talk About 'Sensitive Business Matters,' FTC Alleges

The FTC's filing claims Bezos and other execs used a disappearing message feature even after Amazon knew it was being investigated.

Business News

'My Mouth Dropped': Woman Goes Viral For Sharing Hilarious Cake Decorating Mishap at Walmart

Peyton Chimack has received over 703,000 views on her TikTok post of her birthday cake.