Proposed Settlement Rejected in Fred Meyer Wage Class Action

Oregon employees of the Kroger Co. subsidiary Fred Meyer Stores Inc. will need to revise a proposed class action settlement reached with the supermarket chain in a suit alleging it used a new payroll system that caused pay errors.

The proposed attorney’s fees aren’t “fair and reasonable,” and the suggested service award for the five named plaintiffs is “excessive and unsupported by the record,” said Judge Marco A. Hernandez of the US District Court for the District of Oregon in a Thursday opinion.

Hernandez denied the preliminary settlement—which would have included a $3 million gross settlement award and up to ...