Ohio-based Abercrombie
& Fitch Stores Inc. has agreed to shell out $2 million to settle a class
action lawsuit accusing it of misclassifying managers to avoid paying overtime.
The settlement will be shared by 250
store managers. The lawsuit, filed in July 2002 in a
clothing retailer automatically classified its store managers as exempt from overtime.
However, according to the suit, many managers spent more than half their time
performing nonexempt work, including waiting on customers, ringing up sales, and
stocking shelves. What’s more, the managers charged, they were regularly required
to work 45- and 60-hour weeks without overtime pay.
Paying Overtime: 10 Key Exemption Concepts
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