Barbara Anderman  |  September 8, 2014

Category: Labor & Employment

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SkechersMost people work an eight hour day. During that time, states California Labor Laws, hourly employees (non-exempt) are entitled to rest periods, meal breaks, and overtime pay once they pass that eight hour period in a day, or 40 hours a week.

These laws are backed by a federal statute of the United States, the Fair Labor Standards Act (FLSA). But not all companies follow this code of conduct.

Companies often settle labor law complaints when they become wage and hour class action lawsuits. The most recent to follow this pattern was Skechers USA Inc., with a preliminary settlement agreement in process for $1.2 million.

Started in 2011, the original unpaid overtime lawsuit was filed by lead plaintiff Roneshia Sayles. She alleged that Skechers violated California labor laws by withholding pay from employees. This included compensation for missed meal and rest breaks, overtime and earned wages.

Employees joined in large enough numbers to create a wage and hour class action lawsuit against the shoe company. As settlement approaches, there are around 4,800 employees who allege the retailer didn’t provide meal and rest breaks or pay overtime.

Court documents say that of the 4,800 Class Members, no one opted out or objected. All 4,800 were notified, and of those 1,221 submitted potentially valid claims. Settlement terms state that between $357,000 and $714,000 will be paid out to the Class. The average share per Class Member should be about $292, with named plaintiffs scheduled to receive $5,000 in incentive awards each.

History of Labor Law

Drafted by Sen. Hugo Black of Alabama and signed into law in June 1938, the Fair Labor Standards Act (FLSA) was born. President Franklin D. Roosevelt characterized the FLSA as “the most far-reaching, far-sighted program for the benefit of workers ever adopted in this or any other country.”

The goal of the FLSA was noted as the “elimination of labor conditions detrimental to the maintenance of the minimum standards of living necessary for health, efficiency and well-being of workers.” In this, it established maximum weekly work hours (40), a minimum wage, and banned oppressive child labor.

Over the decades, states have implemented their own supporting labor laws. How an employee is coded (exempt or non-exempt) defines whether or not they receive overtime wages. Non-exempt, usually hourly, employees are entitled to overtime pay. Exempt (salaried) employees are not. Most employees covered by the FLSA are nonexempt.

However, with differences between state and federal regulations, many companies misclassify their employees. This miscoding, whether intentional or accidental, often violates California labor codes. Almost every profession in California is covered by California overtime law.

According to the Department of Labor, there were “40,000 wage-and-hour complaints during fiscal 2010.” Today, wage and hour litigation is one of the fastest growing types of class action lawsuit.

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2 thoughts onSkechers Ready to Settle Unpaid Overtime Class Action Lawsuit

  1. ellie saraipour@yahoo.com says:

    hello I am also a current skechers employee Since 2011 and I have yet to receive my settlement check. who do we contact for a current update on our status?

  2. Harmanpreet Arora says:

    Hello
    I am a current skechers employee and have been since year 2011. I turned in my paper to get my claim and my coworkers have received their settlement checks but I still have not. I would like to know when I will be receiving my check.
    Thank you
    Harmanpreet arora

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