Aspen Skiing Company resolves class action lawsuit for $1.575 million

Aspen Skiing Company has reached a settlement in a class action lawsuit, agreeing to pay $1.575 million to roughly 10,000 current and former employees. This settlement follows a legal battle that began over a year ago when a former employee claimed that SkiCo failed to provide workers with state-mandated paid breaks and did not compensate them for on-mountain commute time. Additionally, the lawsuit alleged that the company provided misleading information about employee benefits.

District Court Judge Anne Norrdin approved the settlement on Monday, stating that the proposed agreement was fair and reasonable. According to the terms of the settlement, employees will receive a combination of cash payments and vouchers. The total settlement amount includes $875,000 for cash payments ranging from $5 to $375 per individual and $700,000 for vouchers ranging from $64.58 to $114.57. These vouchers can be used for on-mountain purchases such as food, beverages, rentals, retail, tickets, or online transactions.

Alexander Hood, the representative of the plaintiff, explained that the payment amounts are based on the amount of time each employee worked. The plaintiff will receive $30,000 for representing the employees in the case. SkiCo agreed to the settlement in order to put an end to the costly litigation process, although they did not admit any fault or liability regarding the allegations made against them.

The employees who will benefit from the settlement are divided into two categories. The first group, known as “the class,” includes 6,351 current and former employees who will be compensated for missed breaks under Colorado law. The second group, called the “on-mountain subclass,” consists of 3,761 employees who will receive compensation for their on-mountain commute time. The lawsuit, filed in October 2023, alleged that SkiCo deliberately deprived workers of paid breaks and failed to compensate them for their commute time. It also claimed that the company provided false information about employee benefits, including discounted lift tickets for friends and family.

The plaintiff argued that the employees were required to show up at the lift or gondola at specific times, often transporting work-related materials without compensation. They also faced physical hazards during on-mountain travel, which the plaintiff believed should have been compensated according to Colorado law. In response, SkiCo moved to dismiss the claims, citing their employee portal’s guidelines on breaks and refuting the allegations of wrongdoing.

Overall, the settlement brings an end to a long legal battle between Aspen Skiing Company and its employees, providing compensation for past and current workers who were affected by the alleged violations.