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Payroll Errors Force Jack in the Box Into Wage Class Retrial

The Ninth Circuit sent Jack in the Box’s $5.3 million wage‑penalty class action back to trial after finding the payroll over‑deductions were not willful and the penalty ratio may breach due‑process. The case stems from a tiny 0.1‑0.4 cent‑per‑hour deduction error that persisted from 2004‑2011, affecting over 5,100 Oregon workers. The court also reversed rulings on unpaid meal‑break wages and shoe‑deduction practices, expanding employer liability under Oregon law. The decision forces a new trial on willfulness, class certification for meal‑break and shoe claims, and recalculation of interest.