Coffeehouse Managers

Dayton, OH: (Feb-4-08) Three former employees brought a lawsuit against Caribou Coffee Co., alleging that the company misclassified its retail coffeehouse managers as exempt from overtime provisions, which they said was a violation of the Fair Labor Standards Act. Records show that the labor dispute lawsuit eventually expanded to class status, including other current and former managers.

Sources close to the case stated that the parties had reached a settlement agreement, resolving the class action lawsuit. Under the terms of the deal, Minnesota-based Caribou agreed to pay over $2.7 million to resolve allegations in the 2005 lawsuit. The payout would also include its share of payroll taxes. The company detailed that it if the settlement is approved by the courts, it would pay the settlement out in two installments of $1.75 million by Mar. 15, and $950,000 by Dec. 29, along with interest. The $2.7 million fund would make payments to all participating class members and all attorneys' fees. [DAYTON BUSINESS JOURNAL: MANAGER OVERTIME]

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