Discount Retailer Agrees to Settlement in Unpaid Overtime Lawsuit

Discount Retailer Agrees to Settlement in Unpaid Overtime Lawsuit

PHOENIX, Ariz. — An Arizona discount retailer chain recently agreed to a settlement with the U.S. Department of Labor to resolve claims that the company violated various provisions of federal labor and wage laws, including failure to pay overtime to dozens of employees.

As part of the settlement, Phoenix-based 99 Cents Only Store, Inc. will pay a combined $273,254 in back wages and damages to 125 current and former employees in 39 of its Arizona stores.

An investigation by the Labor Department’s Wage and Hour Division determined that 99 Cents Only Store violated the Fair Labor Standards Act (FLSA) when it failed to pay its retail workers one and a half times their average hourly rate of pay for overtime wages. Under the FLSA, employers must pay this premium overtime pay for the hours workers spend on the job above the national 40-hour per week overtime threshold.

“The Wage and Hour Division is available and eager to provide assistance to employers to help them avoid wage violations,” said Eric Murray, Wage and Hour Division District Director in Phoenix. “Employees must be paid in full and in compliance with basic rules. The U.S. Department of Labor provides a wide variety of tools to help employers understand these rules.”

The investigation determined that assistant managers often worked through their lunch breaks but had 30 minutes automatically deducted from their time cards each day they worked on the job. This automatic deduction resulted in the employees being shortchanged on their paychecks, including overtime pay.

99 Cents Only Stores failure to to maintain accurate payroll records also resulted in recordkeeping violations, another violation of the FLSA.

Unfortunately, this type of wage theft is all too common in the retail industry where assistant managers are often overworked and classified as “overtime exempt” despite the fact that their responsibilities do not include duties necessary to be classified as such under the FLSA.

When companies commit wage theft, the FLSA gives workers the right to file lawsuits and recover back pay with interest, liquidated damages, and attorneys fees.

Retail Worker Unpaid Overtime Lawsuit

Call (855) 754-2795 or complete the Free Unpaid Overtime Case Review form on the top right of this page if you believe that your wage rights are being violated under the FLSA.

Our top-rated team of unpaid wage lawyers will evaluate your situation to determine your best course of action to help you seek justice. Our office will also determine if it is in your best interest to file a lawsuit against your employer.

Because strict time limitations apply for filing these types of claims, we advise you contact our experienced unpaid overtime wage attorneys at your earliest convenience and preserve your legal rights.

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