Costco Worker in N.Y. Sues Over Biweekly Pay Scheme, Unpaid OT

Costco Wholesale Corp. is facing accusations that it violated the Fair Labor Standards Act and New York law by failing to compensate hundreds of store employees for missed meal breaks and improperly delaying their paychecks, according to a new lawsuit filed in federal court.

Costco maintained a policy and practice of automatically deducting an unpaid, 30-minute meal period from employees’ recorded hours, regardless of whether they actually took the break, according to the complaint filed Tuesday in the the U.S. District Court for the Eastern District of New York.

This practice resulted in unpaid overtime wages, as employees regularly worked ...