Allied Universal Lawsuit: Wages, Discrimination, and Benefits

Allied Universal, the third-largest private employer in North America with around 770,000 workers, has paid roughly $209 million across 264 enforcement actions since 2000, according to the Good Jobs First Violation Tracker.1Good Jobs First Violation Tracker. Allied Universal Security Services The bulk of the Allied Universal lawsuits and government actions on record involve wage and hour claims from security guards and janitorial staff, but the company has also faced federal discrimination suits, a Fair Credit Reporting Act class action over background checks, and an ERISA case over 401(k) fees. Several cases were brought against predecessor entities (AlliedBarton, G4S Secure Solutions, U.S. Security Associates) that Allied Universal now owns following its 2016 formation and 2021 acquisition of G4S.2Allied Universal. About Us

Wage and Hour Cases

Wage and hour disputes are the dominant category by a wide margin. The Violation Tracker records about $180.7 million across 152 wage and hour actions tied to Allied Universal and its predecessors.1Good Jobs First Violation Tracker. Allied Universal Security Services The claims tend to follow a pattern: guards allege they were not paid for all hours worked, were shorted on overtime, or were denied required meal and rest breaks.

Amazon Seattle Guards: $1.1 Million Back Wages

In October 2023, the U.S. Department of Labor announced that Allied Universal, operating as Universal Protection Service LP, would pay nearly $1.1 million to 778 security workers stationed at Amazon’s Seattle headquarters. Federal investigators found the company had automatically deducted 45 minutes per shift for meal breaks while frequently requiring guards to stay at their posts or keep working, and then failed to correct pay records, in violation of the Fair Labor Standards Act.3U.S. Department of Labor. Allied Universal Security Services Pays Nearly $1.1 Million in Back Wages The recovery included $549,947 in back wages, an equal amount in liquidated damages, and $50,000 in civil money penalties.4Bloomberg Law. Allied Universal Agrees to Pay Almost $1.1 Million in Back Wages

Hakeem v. Universal Protection Service: $10 Million

The largest California wage class action on record settled for $10 million. In Maged Hakeem, et al. v. Universal Protection Service, LP (Sacramento Superior Court, No. 34-2019-00270901), the plaintiffs represented non-exempt California employees who worked for the company between November 2017 and February 2020. The complaint alleged unpaid wages and overtime, missed meal and rest periods, wage statement and paycheck errors, unreimbursed business expenses, and Private Attorneys General Act penalties. Allied Universal denied liability. Class counsel was eligible to receive up to a third of the fund, and $25,000 was set aside for PAGA penalties, with 75 percent of that going to California’s Labor and Workforce Development Agency.5CPT Group. Hakeem v. Universal Protection Service Settlement Agreement

Monge v. Universal Building Maintenance: $5 Million

The company’s janitorial subsidiary settled a separate California class action for $5 million. Monge v. Universal Building Maintenance, LLC (Orange County Superior Court, No. 30-2020-01140656) covered hourly non-exempt California employees from May 2016 through June 2022 and alleged non-compliant meal and rest periods, unpaid overtime and minimum wages, inaccurate wage statements, late final paychecks, and unreimbursed expenses for uniforms, equipment, and personal device use. Final approval came in July 2023.6Phoenix Class Action. Monge v. Universal Building Maintenance Class Notice

Kronos Ransomware Payroll Case

A December 2021 ransomware attack on the Kronos timekeeping platform triggered a different sort of wage claim. Jones v. C&D Security Management, Inc. et al. (No. 2:22-cv-01536), filed in April 2022, alleged that once the electronic timekeeping system went down, Allied Universal and related entities paid workers based on scheduled hours or duplicated prior paychecks instead of tracking actual time worked. The complaint raised FLSA overtime claims and California Labor Code and Unfair Competition Law claims, and sought to represent non-exempt employees nationwide from the attack onward. As of early 2026, the case was still active.7ClassAction.org. Allied Universal Security Failed to Properly Pay Workers Following Kronos Data Breach

Sears v. Universal Protection Service

A May 2023 lawsuit in the U.S. District Court for the Southern District of Indiana alleged that Allied Universal paid hourly security guards only for scheduled shift times rather than actual recorded hours, resulting in unpaid regular and overtime wages. The plaintiff sought class treatment; no public update on the case’s status was available.8Indiana Wage Law. Sears v. Universal Protection Service LLC

Discrimination Cases

Federal agencies have brought several discrimination actions against Allied Universal and its predecessors. Employment discrimination accounts for about $7.6 million across 17 records in the Violation Tracker.1Good Jobs First Violation Tracker. Allied Universal Security Services

Pregnancy Discrimination: $110,000

In EEOC v. U.S. Security Associates, Inc. d/b/a Allied Universal (E.D. La., No. 2:20-cv-02467), the Equal Employment Opportunity Commission alleged that a pregnant Baton Rouge security guard was transferred to a more physically demanding post, placed on involuntary leave after she reported pain and submitted a doctor’s note, kept off the job for over a month after a second medical clearance, and then fired. Allied Universal settled in March 2021 for $110,000 in back pay and damages, plus a three-year consent decree requiring training and regular EEOC reporting.9EEOC. Allied Universal to Pay $110,000 to Settle EEOC Pregnancy Discrimination Lawsuit

Religious Discrimination: $90,000

In January 2018, the EEOC announced a $90,000 settlement in EEOC v. Universal Protection Services, LP, dba Allied Universal Security Services (S.D. Cal., No. 3:17-cv-02436). The agency alleged that a Muslim security guard was fired two days after requesting a modification to grooming standards for religious reasons, in violation of Title VII. The settlement also required Allied Universal to retain an equal employment monitor, revise its religious accommodation policies, and provide annual training to employees and managers who handle accommodation requests.10EEOC. Security Services Company to Pay $90,000 to Settle EEOC Religious Discrimination Suit

Race and Sex-Based Pay and Hiring

The Department of Labor’s Office of Federal Contract Compliance Programs has reached two significant conciliation agreements:

  • G4S Secure Solutions, acquired by Allied Universal in 2021, was found to have engaged in systemic race-based hiring discrimination at its Houston facility in 2016 and 2017. Under an October 2023 agreement, Allied Universal paid $411,000 in back wages to 1,459 unsuccessful Black applicants, extended job offers to 28 of them, and revised its recruiting and selection procedures.11U.S. Department of Labor OFCCP. Allied Universal Conciliation Agreement
  • Predecessor AlliedBarton paid $1,175,000 in back wages and interest after an OFCCP evaluation found the company had assigned 2,263 female, Black, and American Indian employees to lower-paying job sites than other guards. AlliedBarton replaced its informal “tap on the shoulder” placement method with a system that notifies all personnel of openings, and agreed to mandatory training and three years of compensation monitoring.12International Code of Conduct Association. Discrimination – Code Paragraph 42

Illinois Retaliation Case

In December 2024, the Illinois Human Rights Commission revived a case brought by Tony Bryant, a former Allied Universal employee who alleged that a supervisor harassed him based on perceived sexual orientation, that the hostile environment amounted to constructive discharge, and that after he complained and initially had his resignation rescinded, the company fired him without cause in retaliation. The Commission found the evidence sufficient to support a prima facie case of retaliation and remanded for a full investigation.13Illinois Human Rights Commission. Bryant v. Universal Protection Service Order

Background Check Class Action

In February 2026, Jashar Morris filed a Fair Credit Reporting Act class action against Allied Universal Compliance and Investigations in the U.S. District Court for the Middle District of North Carolina (No. 1:26-cv-00147). The complaint alleged that Allied Universal rescinded Morris’s job offer based on a background report that falsely stated he had pled guilty to a violent crime and been charged with machine gun possession in 2005, and that the company failed to provide him a copy of the report before making the adverse hiring decision, instead directing him to the background check vendor. The FCRA requires the company itself to furnish the report first.14HCM Magazine. Applicant Sues Allied Universal for Pulling Offer Over Flawed Background Check The suit proposed three classes totaling roughly 25,000 people and sought statutory damages of $100 to $1,000 per violation plus punitive damages. The parties filed a joint notice of settlement in June 2026, with a stipulation of dismissal due by late July 2026.15PACER Monitor. Morris v. Allied Universal Compliance and Investigations

401(k) Fee Case

Participants in Allied Universal’s retirement plan sued the company and Allied Universal Topco LLC in Nickolas Tsui, et al. v. Universal Services of America LP, et al. (C.D. Cal., No. 8:22-cv-011), alleging under ERISA that the plan carried excessive administrative fees. The proposed class covered about 53,000 participants dating back to June 2016. In December 2025, Judge John W. Holcomb granted preliminary approval of a $1.4 million settlement, estimated to represent more than 23 percent of total estimated losses. A final approval hearing is set for September 23, 2026.16Bloomberg Tax. Allied Universal’s $1.4 Million 401(k) Settlement Gets Thumbs Up

Safety, Labor Relations, and Other Records

Outside the employment claims that dominate the record, Allied Universal’s file also includes a single $15 million competition-related penalty, roughly $863,000 in safety-related penalties across 57 records, and a $450,000 government-contracting matter.1Good Jobs First Violation Tracker. Allied Universal Security Services OSHA records include a 2021 citation for failing to report an employee hospitalization within the required 24-hour window.17OSHA. Violation Detail – Allied Universal Security Services Labor relations violations total about $1.9 million across 30 records; several NLRB unfair labor practice charges have been filed in recent years, though multiple 2025 cases were closed after dismissal by the NLRB General Counsel.18NLRB. Case 20-CA-365327