Judge grants preliminary approval of settlement for Vail Resorts employee lawsuits

Vail Resorts HQ in Broomfield, Colorado. Photo: Snowbrains

EL DORADO COUNTY, Calif. — A judge in the California state court granted preliminary approval of a $13.1 million deal offered by Vail Resorts to settle five labor lawsuits in California, according to documents obtained by the Vail Daily.

The deal “would settle any and all allegations that the company failed to reimburse employees for equipment or pay employees for all hours worked over the last three to four years.”

After administrative costs and legal fees ($4.36 million) are deducted, $8.24 million would be directed to over 100,000 Vail Resorts employees. An “allocation formula” would be used to determine the payout, considering variables such as time with the company, location, and positions held. Those in “snow positions” would be given twice as many “points.”

“Any employee who cashes the settlement check they will receive in the mail gives up their right to bring similar legal action against Vail Resorts for the specified time period of three to four years depending on the state they work in.” — Kelli Duncan, Vail Daily

A similar employee class-action lawsuit in Colorado has been stalled since last summer when the California case began settlement proceedings.

Two Colorado-based attorneys, Edward Dietrich and Benjamin Galdston, filed a motion to try to block the settlement in December. They argued that the company cannot “resolve all claims” if their plaintiffs are not included. However, it was denied by California state judge Michael J. McLaughlin on March 7.

Both cases allege that Vail Resorts failed to pay employees for all hours worked, including overtime, meals, breaks, and training. They also allege that the company did not reimburse employees for necessary work equipment, such as skiing gear.

The settlement deal is currently going through a third-party “settlement administrator” to hammer out logistical details before asking the court for final approval in June.

Notice packets have been sent out to employees. They have until May 21 to opt-out or object to the settlement. Objections will be heard prior to the hearing for approval.

Vail Resorts’ last official statement on the matter was in October (Vail Daily):

“We do not comment on settlement details, and Vail Resorts believes the settlement is appropriate and fair,” said Jamie Alvarez, director of corporate communications for Vail Resorts.

“Moreover, it is being submitted to a judge who will be asked to ensure that it is fair and reasonable to everyone affected.

“We dispute the accuracy of the claims raised by the plaintiffs, however, to avoid the time-consuming and costly nature of further litigation, the parties involved have negotiated a tentative settlement and will seek court approval to finalize and ensure the outcome is a fair resolution to all.”