Rite Aid Reaches $20.9M Unpaid Overtime Class Action Settlement

Rite Aid Corp. has agreed to pay up to $20.9 million to settle unpaid overtime charges filed in numerous class action lawsuits nationwide.

 

U.S. District Judge John E. Jones III preliminarily approved the Rite Aid overtime settlement, which could affect 6,100 people in 31 states.

The Rite Aid overtime class action settlement is nearly four years in the making, and will resolve 13 class action lawsuits filed by assistant store managers and co-managers who alleged they were denied overtime because Rite Aid misclassified them as supervisors. The workers’ duties did not include store or department management, they alleged, and they did not have authority to hire or fire or directly supervise other employees.

“We are very pleased that this hard-fought case has been settled,” said a Plaintiff attorney. “We hope it will be approved and we will be able to get the money into the Plaintiffs’ hands without much delay.”

Rite Aid admitted no wrongdoing in settling the unpaid overtime case, and issued a statement saying the class action lawsuit settlement allows the company to avoid the distraction of ongoing litigation.

“Rite Aid believes that its previous classification of assistant managers and co-managers as exempt employees is fully compliant with applicable state and federal law,” the statement says.

The Rite Aid unpaid overtime class action settlement will provide an average pre-tax payout to claimants of $2,000, according to court documents. A Final Fairness Hearing is scheduled for October 24, 2012.