Rite Aid: Wrong on Overtime Pay to Managers

Rite AidRite Aid Corporation has agreed to pay more than 6,000 current and former employees a total of $20.9 million in unpaid overtime pay.

The employees argued that as Assistant Managers, they were entitled to time and a-half their regular rate of pay for all hours worked over 40 hours in each work week.

Rite Aid Corporation argued that these employees were exempt from the overtime provisions of the Fair Labor Standards Act (FLSA) and thus were not entitled to overtime pay.

This case, just as in the recent Walmart suit, involved an issue of employee misclassification.  Rite Aid Corporation was said to have misclassified these Assistant Managers as exempt employees (not entitled to overtime pay) when their actual job duties would suggest that they were really non-exempt employees as defined under the FLSA.  The FLSA is clear that an exemption to the overtime law is dependent on the usual job duties of the employee, not the employee’s title.

The employees who brought suit alleged that despite their job duties remaining the same, Rite Aid Corporation stopped paying overtime pay in February 2006.

Many employers misread the FLSA or have little to no knowledge at all as to the provisions of the FLSA.  Further, many employers mistaken believe that they can simply change an employee’s title to that of “Manager” (or the like) and avoid having to pay overtime.  This is a very common problem that employers often make, which has caused a tremendous amount of litigation over the past several years.

Often, it is unclear whether you would be classified as an exempt or non-exempt employee.  If you believe that you may be entitled to overtime compensation or wish to schedule a free consultation, please call (954) 727-8570 or fill out the form on the right side of the page and an attorney will respond to your inquiry promptly.  We are conveniently located in Broward County and Miami-Dade County.

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