Apple Offers $30 Million to Settle Bag-Search Suit The suit that has been ongoing since 2013.

By Emily Rella

Opinions expressed by Entrepreneur contributors are their own.

Barcroft Media | Getty Images

Apple has offered up $30 million to settle a suit that has been ongoing since 2013. Last year, California's supreme court ruled that the company did break the law by failing to pay employees as they waited for bag and iPhone searches after shifts.

Courthouse News got the proposed settlement, in which Lee Shalov, plaintiff for the attorney, wrote, "This is a significant, non-reversionary settlement reached after nearly eight years of hard-fought litigation."

In 2013, a class of employees sued over Apple's practice of searching employee bags and phones for stolen merchandise or trade secrets while they were off the clock.

Their suit argued they should be paid for the time they spent undergoing security checks, during which time they felt like they were under the "control" of Apple and management. Almost 12,000 current and former Apple Store employees in California stand to receive a payout from the settlement, if the plaintiffs approve it. The maximum payment will be around $1,200.

Apple argued that employees were free to leave their phones at home to avoid searches, but the 2020 ruling against the company shot down that defense: "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," said the judges.

Emily Rella

Senior News Writer

Emily Rella is a Senior News Writer at Entrepreneur.com. Previously, she was an editor at Verizon Media. Her coverage spans features, business, lifestyle, tech, entertainment, and lifestyle. She is a 2015 graduate of Boston College and a Ridgefield, CT native. Find her on Twitter at @EmilyKRella.

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

Leadership

Lead From the Top: 5 Core Responsibilities of a CEO

Knowing exactly what the chief executive's role entails is critical for steering a company to success.

Business News

The CEO of the World's Most Valuable Company Says This Would Be His College Major in 2025

Nvidia CEO Jensen Huang graduated with a Bachelor's degree in electrical engineering from Oregon State University in 1984, but he would change that major if he were in college today.

Business News

Amazon Ring Staff Reportedly Must Prove That They Use AI To Get Promoted

Ring founder Jamie Siminoff is back at Amazon as a VP, leading the tech giant's home security camera division.

Leadership

My Uncle Lost $14M by Treating His Business Like His 'Baby' — Here's the Lesson Every Founder Needs to Learn

Knowing when to sell your company can make a huge difference in the price you receive.

Leadership

Guy Fieri Teaches His Team This Customer Service Secret — And It Can Unlock Unexpected Success For Your Business Too

We sat down with the Mayor of Flavortown to find out the philosophy that helped him build a global brand centered on food, fun, and family.