The 2004 lawsuit said that the nation's largest-circulating Chinese-language paper forced reporters, sales and production staff and even delivery drivers to work long hours and six-day weeks without overtime pay, meals or rest breaks. The lawsuit said the paper also denied workers proper vacation pay.
The Chinese Daily News has a readership of about 120,000 and is based in Monterey Park, an eastern Los Angeles suburb with a large Asian-American population that swelled in the 1980s with an influx of immigrants from Taiwan.
The class-action federal lawsuit was closely followed by Chinese living at home and abroad. It made its way to the US Supreme Court, which sent it back to an appeals court in 2011.
Both sides reached a settlement last year. But it was only approved last month by a judge, who must still approve the distribution of the money.
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The USD 7.8 million includes interest and penalties for violations of labor law.
"My feeling is pretty mixed. It came so late. This lawsuit last for more than 12 years," said Lynn Wang, who worked for the paper for 18 years.
She was fired in 2005 after giving a deposition for the lawsuit. "They terminated me as an example to other workers, make everybody scared," she said.
After a long day, she also might be called in again. "They say you're on duty all the time. They can call you to do a story anytime. If I finish my work, if there's a shooting or a fire somewhere, they call me," Wang said.
Employees also had to attend late-night staff meetings that lasted until 1 a.M., she said.
Many workers were recent immigrants who didn't know their employment rights, Wang said.