Apple Ordered to Pay Employees for Time Lost to Bag Searches The company broke California's labor laws, the state's supreme court ruled.

By Steve Dent Edited by Frances Dodds

This story originally appeared on Endgadget

Associated Press via engadget

Apple broke the law in California by failing to pay employees while they waited for mandatory bag and iPhone searches, the state's supreme court has ruled. The fight began over six years ago, when Apple Store employees sued the company, saying they were required to clock out before being searched for stolen merchandise or trade secrets. The workers felt they were still under Apple's control during that five to 20 minute process and should therefore be compensated. Apple in turn argued that the employees could choose not to bring their bags or iPhones, thus avoiding a search in the first place.

Apple won an earlier battle in district court, but the case went to the California Supreme Court on appeal. There, the judges ruled that Apple workers were "clearly under Apple's control while awaiting, and during, the exit searches."

The court dismissed Apple's argument that bringing a bag to work was an employee convenience that shouldn't be subject to compensation. It particularly focused on the fact that Apple felt employees didn't necessarily need to bring their iPhones to work.

"The irony and inconsistency of Apple's argument must be noted," the judges wrote. "Its characterization of the iPhone as unnecessary for its own employees is directly at odds with its description of the iPhone as an 'integrated and integral' part of the lives of everyone else." (In that statement, the court referenced a 2017 Tim Cook interview where he stated that the iPhone was "so so integrated and integral to our lives, you wouldn't think about leaving home without it.")

The court decided that any lost employee wages must be paid retroactively back to July 25, 2009. The decision could apply to over 12,400 workers, according to Bloomberg. The case has now been kicked back to the Ninth Circuit appeals court to apply the ruling and decide on compensation, which could run as high as $60 million, according to previous evaluations. That court has also agreed to take on similar claims by Converse and Nike employees.

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Editor's Pick

Business News

JPMorgan Shuts Down Internal Message Board Comments After Employees React to Return-to-Office Mandate

Employees were given the option to leave comments about the RTO mandate with their first and last names on display — and they did not hold back.

Innovation

4 Ways Market Leaders Use Innovation to Foster Business Growth

Forward-thinkers constantly strive to diversify and streamline their products and services, turning novelties into commodities desired by many.

Branding

How Introverts Can Lean Into Their Strengths and Unleash Their Personal Branding Superpower

Introverts are just as well-equipped as extroverts to share their thoughts and messages on social media platforms. Learn why and some tips on how to build confidence and get started on your personal branding journey.

Side Hustle

'Hustling Since Middle School': She Started a Side Hustle on Facebook Marketplace — Then a 'Game-Changer' Grew It to $25,000 a Month

Leena Pettigrew's "entrepreneurial spirit" inspired her to build a business with earnings that outpaced her full-time income.

Living

Join Costco's Gold Star Membership Today and Receive a $45 Costco Shop Card by Email

Don't miss your chance to get a one-year Costco Gold Star Membership while it includes $45 you can spend online or in-store

Business Ideas

70 Small Business Ideas to Start in 2025

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2025.