Store Managers Win Overtime Settlement from Family Dollar

The federal court in Colorado recently approved a $2.3 million settlement of a wage and hour claim brought by managers at the variety store chain Family Dollar.  The managers had alleged that the chain misclassified them as “exempt” employees, thereby shortchanging them of their overtime pay.  The chain disputed the allegations but agreed to the hefty settlement.  This case highlights the ongoing business practice of many retailers who, to save money on hourly employees, compel their “managers” to do the work of the employees they are supposed to be supervising, including cashiering, stocking, setting up displays, and cleaning.  Under many state laws, as well as the federal Fair Labor Standards Act, managers who spend a large portion of their work days doing hourly work need to be compensated with overtime pay.  We have seen this phenomenon going on for years in the retail and restaurant industries.  We are glad there are a few brave managers out there who will fight for their justly earned overtime pay.  If your employer classifies you as “exempt” from the overtime pay laws but requires you to do a substantial amount of hourly work, please contact an experienced employment law firm like Traub Law to review your legal rights.  You may be entitled to overtime pay.