WHITE PLAINS, N.Y. — Panda Express has reached a tentative agreement with a group of its general managers in a long running overtime pay lawsuit. Both parties have agreed to a close to $3 million settlement. The settlement, if the court approves it, will resolve the class action lawsuit. In their lawsuit, the general managers alleged that Panda Express wrongfully classified their positions as exempt from overtime and denied them the overtime wages to which they were entitled in violation of the Fair Labor Standards Act (FLSA).
The General Managers’ Claim
The class action lawsuit against the Chinese fast food chain was filed in January 2009. The general managers claim they worked more than 40 hours each week on a regular basis, yet they did not receive overtime wages because they were classified as exempt from overtime under the FLSA. Under the FLSA, managers whose primary responsibility is managing an enterprise and directing the work of at least two other full-time employees may be classified as exempt from overtime pay. However in this case, the managers claim their duties included a considerable amount of nonexempt work like cleaning, taking customer orders, and taking out the trash. The FLSA does not specifically state what amount of time must be spent on managerial duties, but if it does not appear that an employee’s primary responsibility is managerial, then it is possible the employee will not be exempt from overtime.
The Path To Settlement
Over the course of the six-year litigation of the lawsuit, the parties had to address how the current class members were notified of the potential class action, how the parties were going to attempt to resolve the matter, and whether or not the managers should have been exempt or nonexempt. In December 2014, the parties participated in an all-day private mediation session, which ultimately led to the current settlement. Under the terms of the settlement the payments to the general managers will be based on a number of details including the number of hours billed. And with the judge’s approval the current class includes 155 current and former general managers.
Because determining if a position should be exempt depends on the specific responsibilities of each manager, the determinations are supposed to be made for each employee individually. If you believe you have been misclassified as exempt from overtime, 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 top-rated 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 experienced 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.