Meredith Friesen  |  March 4, 2015

Category: Labor & Employment

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Payless-ShoeSourcePayless ShoeSource Inc. agreed to pay nearly $3 million to Class Members in an unpaid overtime class action lawsuit. Many Payless managers were allegedly misclassified as exempt from overtime pay and accrued high amounts of unpaid wages.

Named plaintiffs Mark S., Bryan W., Juan T., Melissa P., and Latoya M. filed the unpaid overtime class action lawsuit on behalf of all other individuals who were also not paid for overtime work.

They claimed that Payless managers often performed most of their work day in the store performing “non managerial duties such as operating cash registers, cleaning, greeting customers,  and answering phones. The store leaders or managers then were forced to work overtime without being paid a premium,” according to the unpaid overtime lawsuit.

The plaintiffs argued in their unpaid overtime class action lawsuit that these practices, which saved Payless “hundreds of millions of dollars,” violated the Fair Labor Standards Act (FLSA).

“In fact, years of litigation (even if unsuccessful) is more cost effective then complying with the law due to its rolling statute of limitations,” they added.

Plaintiffs accepted $2.9 million as a settlement from Payless. All Class Members will be informed of the settlement and be given the right to receive compensation from the popular shoe manufacturer. Two-thirds of the settlement was set aside for plaintiff awards. One-third of the settlement was designated to the attorneys fees.

This is not the first time unpaid overtime has been an issue with Payless employees. Payless settled another unpaid overtime class action lawsuit in 2006 and has faced other unpaid overtime lawsuits.

Unpaid Overtime

Unpaid overtime allegations stem from employees claiming that they were not paid for overtime for hours worked or for working off-the-clock. Many have been misclassified as exempt from overtime when in fact they were non-exempt employees.

Though many positions are actually exempt, including some managers, there are specific regulations that must be followed when qualifying an employee as nonexempt.

Some common complaints concerning Fair Labor Standards Act violations include:

  • Unpaid overtime
  • Unpaid wages
  • Off-the-clock work
  • Employee misclassification as exempt
  • Employee misclassification as an independent contractor
  • Missed meals and breaks
  • Donning and doffing
  • Pay that’s below minimum wage
  • Excessive sidework
  • Unpaid internship

Off-the-clock work may include going to unpaid training, opening or closing tasks, working during lunch breaks, and work errands.

Millions of dollars have already been awarded to plaintiffs in unpaid overtime lawsuits who were not properly paid for all of the time that they worked. The statute of limitations for wage and hour class action lawsuits is three years.

The Payless ShoeSource Unpaid Overtime Class Action Lawsuit is Case No. 3:14-cv-00335, in the U.S. District Court for the District of Connecticut.

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One thought on Payless ShoeSource to Pay $3M Unpaid Overtime Class Action Settlement

  1. julie-ann davis says:

    I was recently fired as store manager because I told Sam Mantha Jones that I was going to expose her first slave labor practices she denies all breaKs and lunches for all employees whether they are working 5 hours or 12 hours there’s many other violations going on at the store as we speak I have documentation to prove everything and many many employees current and former are wanting to talk to you guys please help scary part of it all as she has 7 stores

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