Zara Loses Bid to Toss Workers’ Untimely-Pay Claim in Wage Suit

Zara must face worker allegations of untimely pay after a federal judge in New York rejected the fashion retailer’s bid to use union contracts as a basis to dismiss the claim.

Latrell Gillett—a Zara hourly worker seeking to represent stock associates, sales associates, and cashiers—says the company’s biweekly pay schedule violates a New York wage-and-hour law requiring quicker payment. Zara USA Inc. and Inditex USA LLC can’t use union contracts as a shield to dismiss the claim at this stage of the case, the US District Court for the Southern District of New York said.

Zara argued that the ...