Fastenal to Pay $10 Million in Overtime Class Action Settlement

August 29 2008

Fastenal said it will pay $10 million in cash as part of a preliminary settlement to a class action lawsuit alleging that the company failed to pay overtime to some former assistant managers.

The lawsuit was filed by former Fastenal assistant managers last year accusing the distributor of misclassifying its assistant general managers as exempt from the federal Fair Labor Standards Act and corresponding state wage and hour laws in California, Oregon and Pennsylvania.

In a statement filed with the Securities and Exchange Commission, Fastenal denied the allegation, but said it was settling "in order to avoid significant legal fees, the uncertainty of a jury trial, distractions to Fastenal's operations, and other expenses and management time that would have to be devoted to protracted litigation."

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