News for December 22nd, 2008

Federal Appeals Court renders important decision against Family Dollar in FLSA case

A federal appeals court on Tuesday upheld a $35.6 million judgment against Family Dollar Stores Inc. originally handed down by a Tuscaloosa, Ala., federal jury in 2006. The jury said the company violated the Fair Labor Standards Act (FLSA) by wrongly classifying employees as store managers in order to deny them overtime pay.

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Tuscaloosa judges uphold $35M Family Dollar ruling

Three federal judges this week upheld a $35.6 million ruling against Family Dollar Stores Inc., saying the chain denied employees overtime pay by classifying them as store managers.

A three-judge panel in Tuscaloosa agreed with a 2006 jury that found the Matthews, N.C.-based company in violation of the Fair Labor Standards Act and awarded back pay to 1,424 employees, who routinely worked 60 to 70 hours a week. Their duties often included mopping floors, unloading trucks, stocking shelves and running cash registers.

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