Festival Foods class action settlement overview:
- Who: Festival Foods and a group of current and former department managers have reached a proposed $7.5 million settlement resolving wage-and-hour claims.
- Why: The managers alleged Festival Foods improperly classified salaried department managers as exempt from overtime despite their work duties.
- Where: The class action settlement was reached in Wisconsin federal court.
- How to file a claim: Claim-filing instructions are not yet available. Sign up for our free newsletter to receive updates when details are announced. In the meantime, browse our list of open settlements to find other claims you may qualify for.
Festival Foods has agreed to pay up to $7.5 million to resolve allegations that it misclassified department managers as exempt from overtime pay. The proposed settlement is expected to cover approximately 1,000 current and former employees.
The proposed agreement would resolve claims under the federal Fair Labor Standards Act (FLSA) and Wisconsin wage laws. The parties asked the court to preliminarily approve the settlement, which was reached after more than a year of litigation and settlement negotiations.
Under the agreement, eligible workers could receive an average gross payment of approximately $7,418, with individual payments expected to reach as much as approximately $10,150. The final amount each worker receives will depend on the allocation formula established under the settlement.
The $7.5 million maximum settlement amount includes attorneys’ fees, litigation costs, administration expenses and service awards for the plaintiffs. The parties estimate the settlement represents approximately 127% of the unpaid overtime damages calculated under their settlement assumptions.
Festival Foods managers allege they were denied overtime pay
According to the lawsuit, Festival Foods uniformly classified its salaried department managers as exempt from overtime requirements. The managers alleged they nevertheless spent most of their working time performing manual labor and customer service rather than exercising the level of authority and discretion required to qualify for an overtime exemption.
The lawsuit was filed in April 2025. The workers sought overtime compensation under the FLSA and Wisconsin wage laws, alleging they were entitled to additional pay for hours worked beyond the applicable weekly threshold.
Festival Foods denied the allegations and maintained that its department managers were properly classified as exempt from overtime requirements.
The litigation proceeded as a hybrid FLSA collective action and Wisconsin wage law class action.
In February, the court granted the workers’ request to send FLSA opt-in notices to salaried department managers. However, the notice process was placed on hold while the parties continued settlement discussions.
The parties initially participated in mediation in September 2025, but the mediation did not result in a settlement. They continued negotiations with the assistance of a mediator for several months before reaching a settlement in principle in April 2026. The parties executed their final agreement Aug. 7.
The proposed $7.5 million class action settlement remains subject to court approval.
What do you think about this proposed Festival Foods manager overtime settlement? Let us know in the comments.
The workers are represented by C. Andrew Head and Bethany Hilbert of Head Law Firm LLC.
The Festival Foods manager overtime lawsuit is Case No. 3:25-cv-00322, in the U.S. District Court for the Western District of Wisconsin.
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