Amanda Antell  |  March 25, 2015

Category: Labor & Employment

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cracker-barrel-logoIn a recent wage and hour class action lawsuit, Cracker Barrel Old Country Store Inc. has agreed to settled with an associate manager who accused the company of withholding overtime. According to the unpaid overtime class action lawsuit that was officially dismissed earlier this month, the eatery company had allegedly failed to pay overtime to their associate managers, despite the fact that they worked more than 40 hours a week.

On March 13, per the request of both parties, U.S. District Judge Mae A. D’Agostino dismissed the Cracker Barrel wage and hour class action lawsuit without prejudice, giving permission to both parties to re-open the case within 90 days of the settlement. This legal option to reopen the Cracker Barrel class action lawsuit was given in case either the terms of the settlement are not met or if one party is unsatisfied. Judge D’Agostino also officially announced to the court that the wage and hour class action lawsuit against Cracker Barrel is settled or in the process of being settled.

While terms of this unpaid overtime wage and hour class action settlement are not yet available, the plaintiff’s lawyers are confident that the settlement will stay and that victory is insured for their clients. The Cracker Barrel unpaid overtime class action lawsuit was originally filed by New York plaintiff Kenneth P., an assistant manager in a Cracker Barrel upstate New York location, alleging the company violated federal and New York State Labor Laws. Cracker Barrel denies all allegations made by the plaintiff, stating that the company compensated each Cracker Barrel employee according to both federal and state policies.

However, Kenneth alleged that the company misclassfied him and other employees as being salaried employees, which would have exempted him and his coworkers from overtime pay. The duties Kenneth performed were allegedly not considered professional by the federal Fair Labor Standards Act (FLSA), which is one of the requirements to be classified as a salaried worker.

Kenneth began his employment with the defendant in January 2013, and regularly works over 40 hours, often at least 50 hours, performing various occupational duties like food production and preparation, waiting and busting tables, and checking inventory. According to federal and New York state wage law, an employee who works more than 40 hours per week is entitled to an increased pay rate of 1.5 times per hour for each extra hour worked. Recent litigation shows that employers sometimes try to avoid paying overtime to employees by misclassifying as a overtime-exempt, which would make them ineligible for overtime benefits.

Overview of New York Wage and Hour Violations

According to the Cracker Barrel wage and hour class action lawsuit, there are at least three associate managers per store location, each of whom are reportedly not allowed to make decisions in hiring or firing employees, establishing work schedules, or making major financial decisions. If any of these employees were allowed these responsibilities, Cracker Barrel could have had a possible argument for overtime exemption.

In addition to the alleged wage and hour violations, Kenneth also accused Cracker Barrel of violating New York employment laws by not compensating him and other employees for the expenses incurred after being forced to use their own vehicles to make delivery and pickup runs.

In addition to representing himself, Kenneth’s wage and hour class action lawsuit seeks to certify two subclasses of current and former associate managers, with one group consisting of more than 2,000 current and former Cracker Barrel employees who worked from April 11, 2011, and onward, and a New York class consisting of more than 100 current and former employees who were employed at New York Cracker Barrel locations beginning at April 11, 2008.

The Cracker Barrel Unpaid Overtime Class Action Lawsuit is Case No. 3:14-cv-00413, in the U.S. District Court for the Northern District of New York.

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5 thoughts onCracker Barrel Settles Wage and Hour Class Action Lawsuit

  1. Dottie Kaylor says:

    I have open for them for 10 years just recently they started paying me to open. Plus cleaning detailing machines cleaning big ice machines detailing coke machines. Windows inside and out

    1. Selina Basnight says:

      Same here 17 years. Been working off clock doing silverware and getting paid 2 dollars and some change to do multiple thing without equal pay sometimes for an hour

  2. Chelsia Cockerham says:

    Is this still available I worked for them for 14 years. From July 27,2008 to I quit after waiting three hours on relief when school called with daughter having covid

  3. Edna Sherwood says:

    Waitresses working hours for non tipped time should be getting paid!

  4. Stephanie hanson says:

    It’s this still open? I was a manager for them for 2 years

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