A $20.9 million settlement has been approved, following allegations that Rite- Aid Corporation, failed to pay some of its employees overtime. The plaintiffs claim the drugstore chain improperly designated assistant store managers and co-managers as exempt employees, in an attempt to make them not eligible for overtime pay.

According to the Fair labor Standards Act, (FLSA) an exempt employee is excused from overtime provisions of law.  But, in order for a position to be exempt, employers must pay them a salary rather than an hourly wage, as well as they must hold an executive or other high level position. Often times, employers will incorrectly classify employees as exempt solely because they are salaried. However, in addition to being salaried, the employee must be responsible for certain high level tasks.  Such as, an exempt employee would have the authority to hire or fire other employees or whose suggestions and recommendations in regards to hiring, firing, advancement, promotion or any other change of status of other employees are given particular weight.

The Rite-Aid settlement stipulates that class members will be paid based on the amount of hours worked during the applicable period.

If you have been incorrectly classified and are owed overtime pay, please give my office, The Law Offices of Todd M. Friedman a call at (877) 449-8898 for a free consultation.