Chain retailer pays $1.34 million to end class action suit
A national chain recently settled a class action lawsuit in a New York district court with a group of employees who claimed employee attendance wasn't tracked properly, leading to unjust compensation.
The group filing the grievance, a set of store managers, said they were improperly classified as exempt from overtime and due the extra pay that comes with putting in more than 40 hours during a workweek, according to legal journal Law360. The settlement payment of $1.34 million will go to a group of roughly 525 present and former workers.
The employees said that while they were named managers, the majority of their work involved actions that aren't considered exempt - like executive, professional or administrative duties - under the Fair Labor Standards Act.
The agreement between plaintiffs and defendant puts to rest state and federal legal issues that could have continued to burden the employer had the case not been resolved. The litigation had been in and out of various courts and mediation offices for more than 18 months.
Litigation is a costly and time-consuming undertaking for businesses. Using time and attendance software can help businesses properly categorize and pay employees.
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