Consumer Fraud

Tuscaloosa judges uphold $35M Family Dollar ruling

Three federal judges this week upheld a $35.6 million ruling against Family Dollar Stores Inc., saying the chain denied employees overtime pay by classifying them as store managers.

A three-judge panel in Tuscaloosa agreed with a 2006 jury that found the Matthews, N.C.-based company in violation of the Fair Labor Standards Act and awarded back pay to 1,424 employees, who routinely worked 60 to 70 hours a week. Their duties often included mopping floors, unloading trucks, stocking shelves and running cash registers.

The jury “reasonably determined that Family Dollar failed to meet its burden of proving that Plaintiff store managers’ primary duty was management,” said Judge Frank M. Hull in a statement. He was joined by Judges Joel F. Dubina and Peter T. Fay.

Family Dollar (NYSE:FDO) operates 6,600 stores in 44 states, including Alabama. The discount chain offers low-cost products primarily to rural and small-town customers.

Birmingham attorney Allen Schreiber represented the plaintiffs.

SOURCE: Birmingham Business Journal