TJ Maxx Agrees to $4.8 Overtime Class Action Settlement

TJX Companies Inc., the parent company of popular discount retailers like Marshalls, TJ Maxx, and HomeGoods, agreed to a $4.8 million wage and hour class action settlement on Aug. 5.

This wage and hour class action settlement will resolve claims from three consolidated employment class action lawsuits that similarly allege the company neglected to pay assistant store managers overtime rates during their training periods.

Around the same time TJX agreed to the overtime pay class action settlement, promising to pay $4.75 million to the proposed Class of assistant store managers and an additional $1.6 million in attorneys’ fees, the plaintiffs filed a motion for final approval to U.S. District Judge Allison D. Burroughs.

As previously stated, this TJ Maxx overtime pay class action lawsuit encompasses a few wage disputes within Marshalls, TJ Maxx, and HomeGoods stores regarding the ruling parent company’s overtime pay practices. These wage and hour complaints were consolidated in August 2014.

The proposed overtime pay class action settlement will resolve wage and hour claims brought forth by nearly a dozen assistant store managers working at numerous TJX-owned locations, alleging the company routinely misclassified them when they were in training to become Marshalls, TJ Maxx, and HomeGoods assistant store managers.

Furthermore, the employees claim that in their positions as assistant store managers, they generally worked 50 to 60 hours per week. During these work weeks, these same employees were required to work 10 hours per day, five days a week, stocking, processing merchandise, and cleaning the store, work duties that are not related to the management of the store and are responsibilities typically performed by non-managerial employees.

Based on these allegations, the assistant store managers may be routinely denied overtime pay that would be due to them as regular, non-managerial employees.

Instead of continuing to fight the employment law allegations against them, TJX decided to settle, though the company did not admit to wrongdoing by agreeing to the overtime class action settlement.

The TJX overtime pay class action lawsuit specifically resolves claims concerning the denial of overtime pay to these employees during the training period before they were officially working in the capacity as assistant store managers, and not during the time period after fully immersing themselves in these managerial roles

According to the plaintiffs’ motion for final approval of the overtime pay class action settlement: “[the deal] falls within the range of reasonableness, and in the best interests of the ASM training plaintiffs, those individuals who filed a consent to opt-in to this action prior to the entry of a preliminary approval order, and members of the settlement classes.”

The TJX Overtime Pay Class Action Lawsuit is Roberts et al. v. The TJX Companies Inc. et al., Case No. 1:13-cv-13142, in the U.S. District Court for the District of Massachusetts.

UPDATE: November 2017, the Marshalls, HomeGoods unpaid overtime class action settlement is now open. Learn more here.

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