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Source: Lindsey Klingele, MEATINGPLACE.COM, 6/24/08
The Federal District Court for the Eastern District of Louisiana has approved a settlement agreement between Sanderson Farms and some employees in donning and doffing litigation, the company announced.
Sanderson Farms will pay approximately $2.6 million to settle the claims of 8,337 current and former employees of the company's three operating subsidiaries.
"While we are confident our pay practices are and have been legal and appropriate, a United States Supreme Court decision involving other companies created uncertainty regarding whether time spent donning and doffing protective gear, hair nets and smocks is compensable," said Mike Cockrell, treasurer and chief financial officer for Sanderson Farms, in a statement.
The amount of the charge will be recognized during the company's current fiscal quarter, Cockrell added.
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