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A group of Ulta store managers in California are drawing closer to a $3.65 million overtime pay class action settlement.
The 230 store managers at Ulta Salon Cosmetics & Fragrance Inc. claim in the overtime pay class action lawsuit that the company misclassified them in order to make them ineligible for overtime pay.
According to the lawsuit, Ulta violated the state labor laws of California by misclassifying the plaintiffs as overtime exempt, despite performing most of the duties of hourly workers.
“According to plaintiffs, defendant understaffs its stores to extract long hours from general managers, even though general managers spend most of their days performing physically demanding non-exempt work, such as stocking and cleaning shelves, working cash registers, greeting and waiting on customers, and unloading merchandise from trucks,” the settlement agreement read.
The $3.65 million from the preliminary overtime pay class action settlement would be divided between the class members.
Eligible class members are current and former Ulta general managers who worked in one or more of Ulta’s 104 California stores between September 9, 2011 and September 19, 2016.
The amount paid to each class member will vary based on the employees’ salaries and the number of weeks class members worked at Ulta that fall between the eligible class period.
As a result, each class member will receive a minimum of $750 from the overtime pay class action settlement. This payment play is “designed to encourage participation in the settlement,” read the motion for approval.
The settlement money is also meant to cover attorneys’ fees, which make up 25% of the fund. The claims administrator, Simpluris, also requires a $8,500 fee for its services.
Each of the named plaintiffs in the lawsuit will receive a service award of $10,000 each in the overtime pay class action settlement. For the rest of the class members, their portion of the overtime pay class action settlement would be distributed automatically if they do not opt out of the claims against Ulta.
“The settlement appropriately acknowledges the long hours its store managers have put into making Ulta’s California stores so successful,” said the plaintiffs’ co-counsel in a statement.
Wage and Hour Lawsuits
The Fair Labor Standards Act (FLSA) and California labor laws both exist in order to protect workers and ensure they receive fair pay.
The Fair Labor Standards Act was enacted to protect workers from employers who take advantage or refuse to pay proper wages. These laws protect workers from underpayment or unpaid wages, inadequate or unpaid meal and rest breaks, lack of termination wages, and misclassification of workers to avoid overtime payment.
If you or someone you know has worked for an employer in California such as Ulta that has failed to follow some part of the Fair Labor Standards Act or state labor laws, you may be able to join a wage and hour class action lawsuit or file a lawsuit of your own.
The Ulta Store Manager Overtime Pay Class Action Lawsuit is Quinby et al v. Ulta Salon, Cosmetics & Fragrance Inc., Case No. 3:15-cv-04099, in U.S. District Court for the Northern District of California.
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