Zara Workers Get Court Nod for Manual Labor Pay-Delay Settlement

Zara workers who say the clothing retailer failed to timely pay them for manual labor secured a federal judge’s approval for a $1.25 million deal resolving the wage-and-hour dispute.

The deal provides more than 22% of the maximum possible recovery for the state and federal wage claims, according to a letter the workers filed in the US District Court for the Southern District of New York. Judge Katherine Polk Failla approved the settlement in a memo docketed Tuesday.

The workers allege that Zara USA Inc. and related company Inditex USA LLC failed to comply with New York law requiring employers ...