Abercrombie Reaches Unpaid Overtime Class Action Settlement

A Pennsylvania judge has granted preliminary approval to a $575,00 class action settlement with Abercrombie & Fitch Co. over allegations it stiffed workers out of overtime pay.

The unpaid overtime class action lawsuit was filed by lead plaintiff Paul Oliver in November 2012, when he alleged that the retail company violated the Pennsylvania Minimum Wage Act with its overtime wage policy. The Abercrombie & Fitch overtime settlement covers 702 employees who were affected by these wage violations between November 2009 and January 2014.

Oliver filed the unpaid overtime lawsuit against Abercrombie, alleging the company failed to pay him and other employees overtime pay as required by federal law. The company also allegedly failed to acknowledge and pay bonuses the employees when they were owed, and failed to offer remedy or reimburse lost wages. Allegedly, a number of employees in suffered from these wage violations, including assistant manager positions.

According to the Pennsylvania Minimum Wage Act, employees are entitled to overtime wages which are at least 1.5 times greater than the standard rate. Oliver alleged that Abercrombie violated this law by using their automated overtime calculation methods to mismanage hours.

According to the defendant’s model, in a fluctuating work week, all non-exempt employees are paid a fixed amount per week and receive half their hourly wage for each hour of overtime. It is important to note that this model is allowed under the federal Fair Labor Standards Act (FLSA), but the way the defendant manages the system is allegedly in violation of state law.

The money from the Abercrombie overtime class action settlement will be distributed among the Class Members to reimburse them for their lost wages and to pay for any attorney’s fees.

Overview of Wage and Hour Laws 

The FLSA requires minimum wage and hour employees to be paid at least the federal minimum wage amount for all hours worked, plus overtime pay at 1.5 times the regular rate of pay. This required pay includes all non-discretionary bonuses, for all hours worked over 40 in a workweek. Many states have their own laws governing wage and hour requirements, but still must pay at least the federal minimum of $7.25 per hour.

Legal experts have managed to collect a list of strategies that employers use to violate the FLSA, including but not limited to:

• Forcing employees to work “off-the-clock”
• Refusing to pay overtime because employee did not obtain permission to work more hours
• Failing to pay workers for breaks lasting between 5 and 20 minutes, meetings, training sessions, take-home work, and some on-call time
• Misclassifying employees as “exempt”

The Abercrombie Wage and Hour Class Action Lawsuit is Oliver v. Abercrombie & Fitch Co., Case No. 121102571, in the Philadelphia County Court of Common Pleas.

File an Unpaid Overtime Class Action Lawsuit Claim

If you believe that you or a loved one have not received the full wages you were entitled to receive, you have legal options. Please visit the Unpaid Overtime Lawsuit: Wage & Hour, Overtime Pay Class Action Lawsuit Investigation. There, you can submit your claim for a free legal review and if it qualifies for legal action, a seasoned wage and hour lawyer will contact you for a free, no-obligation consultation. You will be guided through the litigation process at no out-of-pocket expenses or hidden fees. The wage and hour attorneys working this investigation do not get paid until you do.