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Lowe’s Overtime Claim Settled For $3.5 Million

TAMPA — Lowe’s human resource managers reached a settlement with the company in their overtime pay class action lawsuit. Early in November, a Florida federal court granted final approval of the $3.5 million settlement, but reserved the issue of the $1.3 million in attorneys’ fees for a later date. The human resource managers claimed the home improvement retailer violated the Fair Labor Standards Act (FLSA) when it misclassified their positions as exempt from overtime pay. The company denies the claims, but has decided a settlement is in the best interest of both parties.

The HR Managers’ Claim

In August 2012, the human resource managers initially claimed the company violated both the FLSA and the Employee Retirement Income Security Act (ERISA) with its misclassification of its employees and denial of the overtime compensation they had earned. They claimed their duties did not reach the level of authority and discretion associated with overtime exemptions.

The Settlement Path

The managers received class certification in January and dropped the ERISA claim in April. Not long before the parties reached a settlement, Lowe’s submitted a motion to decertify the class. As late as October 31, the parties appeared to have numerous points of contention, which would have resulted in long and expensive trial litigation, particularly if the class was decertified. Fortunately for both parties, after extensive informal negotiations, mediation, and court supervision, a settlement was reached that benefited both parties.

The Settlement

In reaching a final settlement, the parties offered multiple earlier settlements for court approval. Earlier rejected settlement offers included a $9.5 million settlement, which would have included nearly 3,000 employees and a $2 million settlement including the 891 current class members. The proposed $2 million would only provide compensation for about 20 percent of the damages allegedly caused by the violations, which the court determined was not reasonable or fair. The current settlement, however, was determined to be fair and reasonable.

According to the terms of the final settlement, 891 opt-in class members will share in $3.564 million on a pro rata basis according to the number of weeks they were employed between January 10, 2011 and November 7, 2014, the settlement’s approval date. The newer human resource managers will receive less than those who were with the company the longest, but the awards will average $4,000. Long-time employees will receive from $7,000 to more than $9,000.

If you are a human resource manager or any type of manager and you do not believe your duties justify being exempt from overtime pay, contact our top rated team of overtime pay lawyers today at (855) 754-2795. Our knowledgeable overtime pay lawyers will evaluate your situation and discuss your options. Or you can complete the Free Unpaid Overtime Case Review form and our experienced legal team will assess your case. If we accept your case, under our No Fee Promise, we will represent you and there will be no legal fees or costs unless you receive a settlement.

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