Army & Air Force Exchange Service Unpaid Wages Class Action Settlement

The United States Army & Air Force Exchange Service has agreed to pay $4 million to resolve a wage and hour class action lawsuit that alleges employees were not properly paid for working night shift hours.

Plaintiffs Andrew Russell and Ruth Gallego filed the Army & Air Force Exchange Service employees unpaid wages class action lawsuit in October 2014, alleging that during the course of their employment they were repeatedly denied payment of the shift differential despite being entitled to receive it.

Specifically, the plaintiffs claim that they worked or were scheduled to work non-overtime shifts where the majority of shift hours were between 3 p.m. and midnight (second shift) or between 11 p.m. and 8 a.m. (third shift), and that they were therefore entitled to premium pay, also known as shift differential pay.

They say that as a result of an error with the payroll system used by the Army & Air Force Exchange Service, employees often failed to receive 7.5 percent additional premium pay for working the second shift and 10 percent additional premium pay for working the third shift.

Additionally, the plaintiffs assert that payments to employees upon separation from the Army & Air Force Exchange Service for accrued leave, or lump sum payments, were not properly paid to employees as a result of the alleged failure to accurately pay the shift differential.

Under the terms of the United States Army & Air Force Exchange Service unpaid wages class action settlement, a $4 million common settlement fund will be established. From this fund, costs of claims administration in the amount of $250,000 and incentive awards of $5,000 for each lead plaintiff will be paid.

The $4 million settlement amount will also be used to pay plaintiffs’ attorneys’ fees, not to exceed more than 40 percent of the settlement amount. If there is money left after the maximum amount of permissible payments is made under the settlement, that money will be returned to the defendants.

As a result of this litigation, changes have been made to the payroll system software and methodology used by AAFES to accurately calculate shift differential pay and lump sum pay.

Class Members who wish to exclude themselves or object to the terms of the settlement must do so by March 31, 2017. Class Members who wish to opt in to the settlement to receive payment must submit a valid Claim Form by May 30, 2017.

Who’s Eligible

You are eligible to participate in the settlement if you worked for AAFES at any time between Nov. 1, 2008 and April 22, 2016 and were eligible for night shift differential and:

• Worked or were scheduled to work non-overtime shifts where the majority of such shift hours occurred either between the hours of 3 p.m. and midnight or between 11 p.m. and 8 a.m., and who were not paid the shift differential to which they were entitled; or
• Were eligible for accumulated and current accrued annual or vacation leave payments upon separation from AAFES and who, upon separation, were not paid the full amount of lump sum payments to which they were entitled as a result of the failure to receive the shift differential.

If you are still unsure whether you are a Class Member eligible to receive compensation in the settlement, you can call the Claims Administrator toll free at 844-702-2780 or email Claims@AAFESShiftDifferentialSettlement.com.

Potential Award

Varies.

Approved claimants will be paid 100 percent of the amount they were supposed to have received during the Class Period for shift differential and/or lump sum leave pay that they were entitled to receive. In the event there is not enough money in the Net Settlement Fund to pay all approved claims, claimants will be paid their pro rata share of the Net Settlement Fund.

In accordance with Federal, State, and local tax laws, required taxes will be withheld from each claimants’ individual settlement payment. To participate in the settlement and receive payment, you must complete and submit a Form W-4 along with your Claim Form.

Proof of Purchase

N/A

Claim Form

CLICK HERE TO FILE A CLAIM »

Claim Form Deadline

5/30/2017

Case Name

Andrew Russell, et al. v. The United States, Case No. 1:14-cv-01062-SGB, in the United States Court of Federal Claims

Final Hearing

5/11/2017

Settlement Website

www.AAFESShiftDifferentialSettlement.com

Claims Administrator

AAFES Shift Differential Settlement
c/o RSM US
PO Box 1327
Blue Bell, PA 19422
1-800-222-2760
Email: Claims@AAFESShiftDifferentialSettlement.com

Class Counsel

John G. Jacobs
Bryan G. Kolton
JACOBS KOLTON CHTD

Defense Counsel

Michael A. Rodriguez
U.S. DEPARTMENT OF JUSTICE

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