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CAMP HILL, Pa. — Rite Aid Corp. last month agreed to pay nearly $21 million to settle 15 class-action lawsuits brought by store managers seeking overtime pay.
The settlements, which end lawsuits that were initiated nearly four years ago, deal with the managers’ contention that they were misclassified as salaried employees and under federal and state laws should have been compensated on an hourly basis and eligible for overtime.
Under the terms of the settlements reached in U.S. District Court for the Middle District of Pennsylvania, Rite Aid has agreed to pay up to $20.9 million to the more than 6,000 current and former associates involved in the class-action lawsuit.
The settlement has been given preliminary approval by the court and is awaiting the final OK.
“This is an excellent result for the present and former Rite Aid assistant managers and co-managers who will benefit from it because the settlement will provide a definite and sure recovery long before any possible payment could be achieved through continued litigation,” the managers’ attorney, Seth Lesser, says. “The settlement, if approved, will avoid the possibility of adverse rulings or even no recovery at all.”
Rite Aid executives, who deny that the company engaged in any wrongdoing, say they feel that the proposed settlement represents a fair, reasonable and adequate resolution of cases.
