WILMINGTON, Del. — The parties in a proposed overtime pay collective action in Delaware federal court have reached a preliminary settlement. The $3.8 million settlement agreement was recently reached between PetSmart Inc. and its operations managers. The operations managers claimed the company had wrongfully classified their positions as exempt from overtime under the Fair Labor Standards Act (FLSA). The proposed settlement, if approved by the court, will resolve the claims of at least 330 operations managers across the country who opted into the lawsuit.
The Operation Managers’ Claim
The lawsuit, which was scheduled for trial just two weeks after the proposed settlement was reached, was filed in September 2012. Four current and former operations managers claimed they were not paid overtime wages when they worked more than 40 hours in a workweek. PetSmart had classified the operations managers as exempt from overtime which meant they were not entitled to overtime compensation. However, the operations managers claim their primary duties consisted of mostly non-exempt tasks and did not include sufficient managerial tasks for the exemption to apply to them. The operations managers received conditional class certification in December 2013. Of the potential 1,100 class members who received notification of the collective action, 331 class members joined the collective action and will be able to share in the settlement.
The Settlement Agreement
As is the case in most class action overtime pay lawsuits, despite entering into the settlement agreement, PetSmart continues to deny the allegations. But the company chose to settle the claim after taking into consideration the time and expense related to taking the lawsuit to trial. These considerations are often weighed by both parties and if a reasonable settlement amount, typically an amount around or below the estimated cost of litigation, can be reached the parties will seek settlement.
In the proposed settlement submitted to the court, $2.3 million of the $3.8 million award will be divided among the opt-in members based on the number of weeks each member worked during the time period specified in the settlement. The remaining amount of about $1.5 million will go towards attorneys’ fees and expenses. The award amount, distribution method, and the agreement overall is considered to be fair and reasonable.
If you believe your job title is managerial in name only and you are not receiving compensation for the overtime you have performed, you may have a wage or overtime pay claim. Time is limited for filing wage and overtime complaints so it is important to call today! Our knowledgeable team of overtime pay lawyers can be reached at (855) 754-2795. Or you may complete our Free Unpaid Overtime Case Review form and our skilled legal team will evaluate your claim. If we accept your case, we will represent you under our No Fee Promise. This means there are no legal fees or costs unless you receive a settlement.