Hanwha Philly Shipyard has agreed to pay $900,000 to resolve a wage-related class action brought by U.S. workers over whether on-site “commuting walking time” should be treated as compensable working time. The shipyard said the agreement was made to avoid the risks, delays, and costs of continued litigation and “does not constitute an admission of any legal liability or illegal conduct.”
According to a disclosure by the U.S. District Court for the Eastern District of Pennsylvania, the shipyard and the plaintiffs filed a Preliminary Approval Application for Class Action Settlement, formally asking the court to approve the proposed deal. If the court grants preliminary and final approval, the matter would be closed through a dismissal with prejudice, terminating the case and preventing a new lawsuit on the same grounds.
The settlement provides for a $900,000 gross fund. The agreement allocates 33% of the amount—approximately $297,000—to cover plaintiffs’ attorney fees and litigation costs. The remaining net damages of approximately $603,000 are to be distributed to workers.
Distribution is set to be proportional to employees’ actual working hours, calculated using the number of weeks in the relevant period during which each employee worked more than 39.5 hours per week. No separate application from employees is required. The plaintiffs who led the class action are slated to receive an additional $10,000.
The dispute stems from the scale of the shipyard and the walking distances many workers cover after clocking in to reach dry docks for welding or assembly work, as well as the walk back to the exit after the shift ends. Plaintiffs allege that from 27 June 2022 to 11 December 2025, workers were not fairly compensated for on-premises walking time before and after work. They argue that counting this time would push weekly totals above 40 hours, triggering overtime that was not paid, and allege violations of the Pennsylvania Minimum Wage Act (PMWA).
The class is described as covering approximately 752 employees who worked at Hanwha Philly Shipyard between 27 June 2022 and 11 December 2025. In response, the shipyard said it paid employees in full for accrued time compensation owed and does not admit legal liability, while choosing settlement to avoid potential future costs, inconvenience, and disruption to business operations.
