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$5.5M Settlement Reached in Rite Aid Unpaid Overtime Class Action Lawsuit

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Santa Clara, CA: A $5.5 million settlement has been reached in an unpaid overtime class action lawsuit brought against Rite Aid by its store managers.

If approved, the settlement would pay damages to two groups of managers, one involving a group of all current and former salaried store managers who worked at Rite Aid between March 2007 and the present, and who claimed violations of the Fair Labor Standards Act (FLSA). The second class involves store workers in New York state who worked at Rite Aid from October 2002 to the present and who alleged violations of New York labor law.

According to court documents, the complaint was filed by a former store manager and lead plaintiff Yatram Indergit, who worked at a Rite Aid store in White Plains, NY, for almost three decades until he was fired in 2007.

The lawsuit alleges Rite Aid failed to compensate its salaried store managers and assistant managers for overtime worked when they filled in for non-exempt employees.

According to the lawsuit, Indergit worked up to 80 hours a week due to Rite Aid’s policy, however he was never paid overtime. Much of his time was spent manning the cash register and photo lab, arranging inventory on shelves and moving crates and boxes in the stock room, he asserts in the lawsuit.

In addition to claims of unpaid overtime and violations of the FLSA and NY state labor law, the lawsuit also makes individual claims of age discrimination.

More than 1,500 managers have opted in to the collective action, according to court records.

The case is Yatram Indergit et al. v. Rite Aid Corp. et al., case number 1:08-cv-09361, in the U.S. District Court for the Southern District of New York.

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