Rite Aid to Pay Over $20M in Class Action Wage and Hour Lawsuit Settlement

June 19, 2012

In recent employee misclassification news, Rite Aid Corporation has reportedly agreed to compensate current and former employees with around $20.9 million--to settle fifteen wage and hour class action lawsuits that accused the company of failing to properly pay overtime wages to misclassified co-managers and assistant managers, who were paid a salary.

In this class action wage and hour lawsuit that Orange County-based Vincent Howard has been following, Rite Aid was accused of misclassifying managers as exempt from overtime payment, and failing to compensate them for overtime hours worked beyond forty hours in a workweek. The plaintiffs in the lawsuit claimed that in their positions as managers, overtime payment was required by the federal Fair Labor Standards Act (FLSA) as well as certain state law.

Under the terms of the global settlement, Rite Aid has agreed to pay $20.9 million in order to resolve the allegations of employee misclassification. The class action wage and hour lawsuit settlement resolves claims for damages that date back to 2002, and covers over 6,000 former and current associates. Both Rite Aid and the plaintiffs reportedly believe that the proposed wage and hour lawsuit settlement is reasonable and provides fair resolution to the class action wage and hour cases that challenged Rite Aid's classification of the co-managers and assistant managers as exempt.

Rite Aid reportedly claimed that they believe their previous classification of the co-managers and assistant managers as exempt was correct, and in compliant with state and federal laws.

As Vincent Howard has reported in a related Carson wage and hour attorney blog, the FLSA provides minimum wage and overtime exemptions for individuals who are employed as executive, professional, administrative, and outside sales employees, as well as certain computer employees. These employment exemptions must meet a certain criteria in order to qualify as exempt from the FLSA overtime requirements.

According to the FLSA, nonexempt employees who are covered by the act, must be compensated with the minimum wage of $7.25 for every work hour, plus overtime payment of one and one-half their normal payment rates, for any hours worked over forty hours in a week of work, including incentive pay, commissions, and bonuses.

If you or someone you know have experienced employment misclassification or other state or federal employment law violations, contact Vincent Howard and our team of Newport Beach employment attorneys at Howard Law, PC. Call us today, toll-free at 1-800-872-5925 to discuss your California labor and employment issue.

Rite Aid and Assistant Store Managers and Co-Managers Reach Settlement in Wage and Hour Class Action Lawsuits, MarketWatch, June 19, 2012

Rite Aid to Settle Overtime Pay Lawsuits, The Wall Street Journal, June 19, 2012

Rite Aid and Assistant Store Managers and Co-Managers Reach Settlement in Wage and Hour Class Action Lawsuits, Business Wire, June 19, 2012

Related Web Resources:

U.S. Department of Labor: Wage and Hour Division (WHD), Fair Labor Standards Act (FLSA)

Department of Labor (DOL): Wage and Hour Division (WHD)

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