Costco Ditches California Warehouse Worker Wage Claims for Now

Costco Wholesale Corp. defeated claims that it stiffed California employees on pay because the warehouse worker’s complaint lacked factual support and relied on “conclusory allegations,” a federal judge said.

The worker’s proposed class complaint says Costco ran afoul of a host of California wage-and-hour laws. None of those allegations can move forward in their current form, but the worker can fix up most claims and try again, the US District Court for the Eastern District of California said Monday.

Plaintiff Martin Reyes worked in a Sacramento Costco warehouse for approximately two decades and sued in 2023. He alleges the wholesale ...