RadioShack will pay $9 million to settle longstanding allegations...
RadioShack will pay $9 million to settle longstanding allegations that it broke federal labor law, said a law firm representing plaintiffs in the case. The agreement was approved by U.S. District Judge Rebecca Pallmeyer in Chicago, ending a five-year…
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class-action suit alleging that RadioShack violated overtime provisions of the Fair Labor Standards Act. Distribution of the settlement to the class is expected to start late this year or early in 2008, RadioShack said in an SEC filing. RadioShack took on an $8.5 million pretax expense last year to cover a preliminary settlement (CED July 24/06 p5). Pallmeyer found that some managers at RadioShack’s so-called Y stores -- those with annual revenue over $500,000 -- were misclassified as exempt from the FLSA provision that requires overtime pay for work outside the standard 40-hour week (CED Sept 19/05 p3). The law exempts executives and managers who “customarily and regularly” supervise two or more employees. Store managers Alphonse Perez and Douglas Philips, lead plaintiffs in a 2003 class- action suit with 3,300 class members, said managing wasn’t their duty and they didn’t qualify for exemption.