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Burlington Coat Factory reaches $11 million settlement on unpaid overtime claims

Published By | Dec 1, 2022 | Unpaid Wages, Wage And Hour/Overtime

The company was sued in the U.S. District Court for the District of New Jersey for allegedly misclassifying assistant store managers as “exempt” employees, making them ineligible for overtime pay despite having to perform manual labor. The lawsuit involves a nationwide class of more than 1,700 former and current assistant store managers who helped stock shelves, work cash registers, build displays, and clean stores, among other manual duties. The employees sought damages for overtime that they did not receive even though they worked more than 40 hours per week.

Allegations in the case

The class representative alleged that she worked 50 to 55 hours per week as an assistant store manager and did not receive overtime pay because Burlington classified her as “exempt.”

Unlike exempt employees, non-exempt employees are entitled to special protections under the Fair Labor Standards Act (FLSA), including the payment of minimum and overtime wages.

In this case, the plaintiff alleged that Burlington’s overtime practices violated the FLSA, which requires companies to pay their employees an additional 50% of their hourly pay rate for overtime hours. The plaintiff also alleged that Burlington’s illegal practices were willful because Burlington knew it was depriving workers of overtime pay and failed to take steps to remedy the situation.

Settlement

Burlington agreed to pay $11 million to settle the case and resolve all claims brought against the company.

If you have questions about exempt vs. non-exempt employment, the Fair Labor Standards Act, or overtime pay, contact an attorney who can help you get the answers you need.

Dedicated Litigators And Knowledgeable Legal Advocates

The Attorneys of Katz Melinger PLLC