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Rite Aid Managers Win $20.9M in Overtime Class Action Settlement

By Matt O’Donnell


Rite AidRite Aid has agreed to pay up to $20.9 million to settle 15 wage and hour collective and class action lawsuits claiming the drug store chain did not pay overtime wages to assistant managers and co-managers.

The Rite Aid settlement will resolve unpaid overtime claims dating as far back as 2002, and will cover more than 6,000 current and former employees.

According to the class action lawsuit cases, Rite Aid misclassified its salaried assistant store managers and co-managers as exempt from overtime pay, and failed to pay them overtime for hours worked in excess of 40 hours a week.

As part of the class action lawsuit settlement, Rite Aid denies any wrongdoing and says it maintains its position that previous classification of assistant managers and co-managers as exempt employees is fully compliant with applicable state and federal laws.

The $20.0 million Rite Aid overtime class action settlement is still subject to court approval.
“This is an excellent result for the present and former Rite Aid assistant managers and co-managers who will benefit from it because the settlement will provide a definite and sure recovery long before any possible payment could be achieved through continued litigation,” said an attorney for the lead Plaintiff. “The settlement, if approved, will avoid the possibility of adverse rulings or even no recovery at all.”

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Updated June 21st, 2012


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