Urban Outfitters Inc. reportedly faces two wage-and-hour actions in New Jersey and New York. Former department managers and assistant department managers claim the retailer has not been tracking their time and attendance accurately or paying them for their overtime hours, according to Law360.
The company saw a slump in sales in the past few years, though seems to be improving its numbers, according to a recent review of its stock. The allegations that the retailer was not paying employees properly is not good news for the organization.
The class action states that Urban Outfitters gave supervisors at their Anthropologie stores - which are owned by Urban Outfitters - permission to change employee time cards so their overtime wouldn't be reflected in company records. Employees said they were working well over 40-hour weeks, but that supervisors were altering their time cards and they weren't receiving proper compensation.
Though the employees said their responsibilities didn't require managerial tasks and were basic retail jobs, the company is still required to pay them according to Fair Labor Stand Act policies. Urban Outfitters has been ordered to pay overtime wages, liquidated damages and various other expenses.
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