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Federal Appeals Court renders important decision against Family Dollar in FLSA case

A federal appeals court on Tuesday upheld a $35.6 million judgment against Family Dollar Stores Inc. originally handed down by a Tuscaloosa, Ala., federal jury in 2006. The jury said the company violated the Fair Labor Standards Act (FLSA) by wrongly classifying employees as store managers in order to deny them overtime pay. The 1,424 employees were regularly required to work more than 60 hours a week, and to perform duties not usually associated with store management such as mopping floors, unloading trucks, stocking shelves and running cash registers. The jury awarded $17.8 million in back overtime pay and an ... Read More

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 ‚Äúreasonably determined that Family Dollar failed to meet its burden of proving that Plaintiff store managers’ ... Read More