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Kohl’s workers have secured a $2.9 million settlement to end claims that the retailer failed to pay assistant store managers overtime.
The class action lawsuit was filed by a trio of Kohl’s workers in 2018 who said that they and other assistant managers were improperly classified as “exempt” from overtime pay. The complaint contended that Kohl’s did so in violation of the Fair Labor Standards Act.
Under the federal labor law, employees can be deemed exempt from protections, such as minimum wage, overtime pay, and other protections, if they meet certain criteria. However, Kohl’s and other large retailers have been accused of flouting the law in recent years by using the “exempt” classification to get out of paying workers.
The plaintiffs claimed that, though they were called “assistant store managers,” much of their labor was menial, repetitive work. They accused Kohl’s of trying to cut corners by sending hourly workers home, but not replacing them, forcing the assistant managers to do their jobs.
The class action lawsuit sought to represent a nationwide class of Kohl’s workers who had been misclassified as “exempt.” The lawsuit also sought a collective action status under the Fair Labor Standards Act.
Kohl’s Workers Class Action Settlement
According to the plaintiffs’ motion to approve the settlement, Class Members will be able to claim an award based on the number of hours they worked between Jan. 11, 2015 through the present. In addition, plaintiffs’ awards, attorney fees, and settlement administration costs will be paid out with the $2.8 million Kohl’s has agreed to provide to end the litigation.
“Plaintiffs believe the settlement is an excellent result for them, as it provides guaranteed monetary recovery now, rather than requiring the parties to engage in further briefing on the propriety of certification, a likely summary judgment motion filed by Kohl’s, the inherent risks of trial and the likelihood of delays on appeal,” states the plaintiffs’ motion urging court approval of the proposed settlement.
“After a great deal of discovery, we mediated while on the eve of trial. The court then granted Kohl’s motion for decertification, but we were able to reach this agreement so that the plaintiffs would not need to file individual cases around the country seeking overtime pay,” an attorney representing the plaintiffs explained to Law360.
Despite the settlement, Kohl’s continues to deny it had improperly classified the workers as exempt from overtime, according to the motion.
Do you work at Kohl’s? Will you make a claim in the unpaid overtime class action settlement? Tell us in the comment section below!
The lead plaintiffs and proposed Class Members are represented by Gary Edward Phelan of Mitchell & Sheahan PC, Richard Eugene Hayber of Hayber McKenna & Dinsmore, Michael T. Petela Jr. of The Hayber Law Firm LLC and Michelle Cassorla and Shannon Liss-Riordan of Lichten & Liss-Riordan PC.
The Kohl’s Workers Unpaid Overtime Class Action Lawsuit is Case No. 2:18-cv-00962, in U.S. District Court for the Eastern District of Wisconsin.
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2 thoughts onKohl’s Workers Reach $2.9M Class Action Settlement Over Unpaid Overtime
I made my claim and submitted the paper work back in 2018 and never received a payment.
Please add me