Hyatt Corp. and workers who say it violated federal and California wage-and-hour laws won a federal judge’s final approval for their $990,000 deal resolving the dispute.

The settlement, which represents more than 75% of the workers’ highest estimate of their potential recovery if victorious at trial, covers nearly 16,000 people who performed hourly work for the hotel chain in California at any time from Dec. 6, 2015, through June 9, 2019, the US District Court for the Northern District of California said.

The workers allege Hyatt had a rounding policy that cost them minimum and overtime wages. The average ...

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