Overtime Suit Against Rite Aid Results in $5.5 Million Settlement for Managers

by Norman B. Blumenthal on August 1, 2017

blumenthal nordrehaug & bhowmik, southern california employment law, southern california employment law attorney, overtime lawsuit, california lawsuit, overtime lawsuit settlementAs a long-running overtime lawsuit turned class and collective action against Rite Aid Corp. draws to a close, the company accused of shorting store managers on overtime pay for work performed while filling in for nonexempt employees will pay $5.5 million in accordance with a deal made in federal court.

The settlement will clear allegations made by Rite Aid managers that the company was in violation of both federal and state laws when forcing salaried managers/assistant managers to fill in for nonexempt employees: cashiers, stock handlers, etc. Allegations stated that the company did so in an effort to decrease the amount of overtime necessary when their nonexempt workers were on the clock.

The overtime fight between Rite Aid and its managers/assistant managers has been ongoing since the end of 2013 when a judge granted certification on a limited issue stating that settling would mean avoiding risks of losing certification in future. The workers feel that the settlement satisfies criteria for preliminary settlement approval according to the law and that it is fair, reasonable and adequate. The class counsel will request close to a third of the settlement amount to cover legal fees (approximately $1.8 million) plus additional for costs. Attorney fee requests will be submitted with the motion for final approval.

Lead plaintiff in the suit, Store manager Yatram Indergit, worked at a Rite Aid store for almost 30 years until he was fired in 2007. He alleges he worked up to 80 hours per week due to Rite Aid’s policy to decrease overtime owed nonexempt employees by filling their shifts with managers and assistant managers. He states he was never paid overtime even though much of the time he was performing the job duties of a nonexempt employee: manning the register, manning the photo lab, arranging inventory, putting stock out on shelves, etc.

If you have questions about what duties fall into the nonexempt category or if you fear you are not receiving the overtime pay you are due, please get in touch with one of the experienced California employment law attorneys at Blumenthal, Nordrehaug & Bhowmik.

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