According to the original lawsuit, filed by Patricia Thomas, Kellogg's deprived territory managers and retail store representatives of premium pay when they worked overtime, in violation of the Fair Labor Standards Act (FLSA).
The settlement resolves the current complaint, which is is the third amended version, filed in 2014. It alleged that territory managers and retail store representatives were often working upwards of 60 hours a week but that Kellogg's failed to pay the time-and-a-half premium rate that the workers say they’re owed.
If plaintiffs did not prove Kellogg's willfully violated the FLSA, then 144 plaintiffs (or 20% of the class) would recover nothing,” the class said in its bid to get the judge’s approval of the settlement. “Or if Kellogg's proved that the fluctuating workweek applies, but plaintiffs prevailed on everything else, plaintiffs recovery would reduce to approximately 30% of their total damages.”
The settlement requires final court approval. The case is Thomas v. Kellogg Co. et al, case number 3:13-cv-05136, in the U.S. District Court for the Western District of Washington.