Employee Misclassification Suit Ends in $4.75M Settlement with Lumber Liquidators

A California judge has given the final approval for a $4.75 million settlement that brings an end to an employee misclassification lawsuit against a major flooring retailer.

The lawsuit alleged that Lumber Liquidators, a U.S. flooring company with more than 400 stores, misclassified store managers and manager trainees, unlawfully denying them overtime.

The lead plaintiff, Robert K., filed the employee misclassification lawsuit in November of 2017, accusing Lumber Liquidators of violating California wage and hour laws in a variety of ways. One of the alleged violations was that the company failed to pay its store managers, and those training to become store managers, overtime wages. The lawsuit also claimed that the company failed to provide these employees proper meal and rest breaks, both of which are required by law. According to the plaintiff, store managers and manager trainees were denied overtime because of an exemption meant for managers, even though these workers regularly performed non-managerial work, meaning they would not qualify under this exemption.

Some $3 million of the $4.75 million settlement amount is to be split among 138 class members, giving them each about $22,000. As the lead plaintiff, Robert will receive an additional service award of $10,000. The remainder is designated for attorney fees and costs. One plaintiffs’ attorney noted that the award is higher than average for lawsuits like this one.

A tentative court ruling for the settlement noted that it was considered fair because it “provides significant value … in a manner approximately commensurate” with the claims set forth.

Another claim in the employee misclassification lawsuit was brought under California’s Private Attorneys General Act, which allows workers to bring employment claims on behalf of the state. That claim is being resolved with an $80,000 payment, 75 percent of which is going to the state, with the remaining $20,000 divided among the workers.

Lumber Liquidators is facing similar allegations in a federal lawsuit in New York. That suit alleges that the company failed to properly pay store managers and managers in training in a nationwide class. So far, more than 260 workers have opted into the class action lawsuit under the Fair Labor Standards Act (FLSA).

If you have been affected by violations of federal or state labor laws —such as inadequate overtime pay, inaccurate pay stubs, or others — you may be able to join a class action lawsuit investigation or pursue a wage and hour claim.

Filing a lawsuit can be a daunting prospect, so Top Class Actions has laid the groundwork by connecting you with an experienced attorney. Consulting an attorney can help you determine if you have a claim, navigate the complexities of litigation, and maximize your potential compensation.

The Employee Misclassification Lawsuit is Case No. 34-2017-00222434, in the Superior Court of the State of California, County of Sacramento.

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