OBI and Ocean Beauty Seafoods Reach Settlement in Class Action Wages Lawsuit
On December 5th, a federal district court in Washington state ordered OBI Seafoods and Ocean Beauty Seafoods to pay $2.1 million to settle a class-action lawsuit. This was due to paying employees late and underpaying them during mandatory quarantines implemented during the COVID-19 pandemic. Judge Marsha J. Pechman signed the order in the Western District of Washington. Additionally, they were directed to pay $10,000 each to plaintiffs Marija and Dusan Paunovic, along with administration costs and attorney fees.
CEO of OBI, John Hanrahan, stated that the company prioritizes its employees, offering competitive wages, and ensuring compliance with all wage laws and regulations. However, he refrained from commenting on the specific terms of the settlement. Hanrahan did mention that all workers at their Naknek facilities received a daily stipend during quarantine, along with free housing, meals, and laundry services.
The lawsuit centered on allegations that OBI and Ocean Beauty had been knowingly delaying wage payments to fish-processing employees. Many of these employees were foreign citizens working in the U.S. under H-2B visas far from their home countries. The lawsuit also claimed that the companies did not appropriately compensate employees for the time spent in isolation, as mandated by Alaska’s Wage and Hour Act and the federal Fair Labor Standards Act.
As part of the settlement, each of the 2,300+ class members will receive a minimum of $536, with some individuals receiving over $3,100. It marks a resolution to a complex case with significant pay disparities between the employees and the companies.
