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› $580,975,000 verdict in consumer fraud 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.
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.
With the holidays bringing a time of togetherness and giving, it also brings a time of bargain shopping and the craziness of holiday sales. It’s a shopper’s dream, but a retail worker’s nightmare. Black Friday begins the Christmas shopping rush and stores extend their hours to accommodate the last-minute shopper, right up until Christmas Eve.
Working for Justin Timberlake’s posh “Southern Hospitality” does not exempt you from unfair treatment and pay. According to an article from Fox News, the former Southern Hospitality bus boy, Felipe Ramales, filed a lawsuit against Timberlake’s restaurant for not compensating him for the overtime he accumulated while there. “Southern Hospitality” is not the first to be sued over overtime hours, and it certainly won’t be the last.
A bill introduced to the U.S. Senate on Sept. 12, 2007, by Sen. Barack Obama, S.2044, commonly called the Independent Contractor Proper Classification Act of 2007, would amend the Revenue Act of 1978. Goals of the bill are to require employers to treat workers misclassified as independent contractors as employees.
The Fair Labor Standards Act (FLSA) was created by the United States government in 1938. This act was set to protect the rights of workers and encourage ‘fair play’ between the management and labor. This act established a national minimum wage, created overtime pay and installed regulations for minors in the workplace.
GOODLETTSVILLE, Tenn. — Dollar General Corporation (NYSE:DG) announced today that the judge in the collective action lawsuit pending against the Company in the United States District Court for the Northern District of Alabama issued a ruling during the trial decertifying the class which had consisted of approximately 2,500 individuals. The case, styled Edith Brown, on behalf of herself and others similarly situated v. Dolgencorp, Inc. and Dollar General Corporation, CV02-C-0673-W, asserts claims under the Fair Labor Standards Act. The judge is allowing the 12 named plaintiffs in the lawsuit to proceed with their case.
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