Family Dollar Stores To Pay $33.2 Million For Overtime Violations

Discount retailer Family
Dollar Stores, based in North
Carolina, has been slapped with a $33.2 million verdict
in a lawsuit seeking back pay on behalf of store managers misclassified as exempt
from overtime. The class action suit, filed in an Alabama court, charged that more than 1,400
managers located in stores in 30 states worked between 60 and 80 hours a week without
overtime pay, even though the managers’ duties didn’t qualify them for exemption
from overtime. Managers allegedly only spent 10 to 20 percent of their time
performing managerial duties and the rest of their time doing manual labor,
including unloading trucks, stocking, mopping, and cashiering. The jury
initially returned a $19 million verdict, which was reduced to $16.6 million.
But the judge doubled that amount based on findings that Family Dollar knew it
was violating the law. The company says it will appeal.

Paying Overtime: 10 Key Exemption Concepts

Only one thing really matters in the determination as to whether or not an employee is exempt: The duties the employee performs. Learn how to avoid costly, preventable mistakes with our free White Paper, Paying Overtime: 10 Key Exemption Concepts.