Rite Aid Settles Overtime Lawsuit for Over 20 Million

Rite Aid Corporation has settled multiple lawsuits alleging that the company misclassified some of its employees and cheated them out of deserved overtime wages, according to the Wall Street Journal. Plaintiffs in fifteen wage and hour collective and class action lawsuits claimed that they were not paid overtime for working over 40 hours per week, despite being guaranteed this benefit under the federal Fair Labor Standards Act (FLSA). The settlement covers actions as far back as 2002 and covers a total of over 6,000 former and current employees.

For some employees, the FLSA guarantees a minimum wage of $7.25 per hour and overtime pay for work over 40 hours in a single workweek. Rite Aid maintained its innocence even after agreeing to the settlement, claiming that it correctly classified its salaried managers and assistant managers. Rite Aid Corporation is the third-largest drugstore chain behind Walgreens and CVS.

Misclassification is one of the most common methods employers use to illegally withhold wages from workers. The Department of Labor repeatedly said that employee misclassification is an “alarming trend” that leads to widespread wage violations, especially in industries that employ low-wage workers. Workers may be labeled as independent contractors instead of employees, may be given fake managerial titles, and could be promoted to executive positions in name only.

Misclassified workers are denied benefits that they otherwise should be receiving. Have you been unjustly denied overtime pay or the federal or state minimum wage? If so, you may be able to find legal recourse in a wage and hour lawsuit, seeking compensation for unjustly withheld wages. You may be eligible for back pay for unpaid overtime or underpayment. To find out if you might qualify, fill out the free, no-obligation case review form on the right.