Manager Overtime

Tustin, CA: (Nov-18-07) A series of class action lawsuits were brought against RadioShack Corp. by RadioShack store managers, alleging that the company hadn't paid overtime wages under the Fair Labor Standards Act. The suits claimed that the company had misclassified them as employees exempt from the receipt of overtime wages. The Pennsylvania class also sought relief under two California state overtime wage statutes. The lawsuits, initially filed in 2002, reached several court rulings in 2005 and 2006, until a recent development in the case.

Sources confirmed that recently, three Federal District Courts have approved a coordinated class action settlement for approximately $8.8 million, resolving the unpaid wages dispute. The settlement was reached following a September 2005 ruling by Judge Pallmeyer, who stated that store managers who failed to supervise at least 80 hours of subordinate time at least 80% of their workweeks did not meet the legal standard for exemption and were therefore entitled to overtime. Because Judge Pallmeyer's ruling only applied to a portion of the class, the parties had to continue to litigate the matter to resolve other legal issues and damages. [YAHOO: RADIOSHACK OVERTIME]

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