Fastenal Reaches $10m Settlement in Wage Dispute
Fastenal Reaches $10m Settlement in Wage Dispute
Fastenal agreed to pay $10 million to settle a class action lawsuit relating to the classification of its assistant general managers as exempt from overtime pay.
The suit, filed in 2007, also alleged that assistant general managers in California did not receive sufficient meal breaks and paid rest periods under the California Labor Code.
“While the company denies the allegations underlying the lawsuit, it has agreed to enter into the settlement agreement in order to avoid significant legal fees, the uncertainty of a jury trial, distractions to Fastenal’s operations, and other expenses” related to litigation, the company stated.
Subject the court approval, the settlement fully resolves all claims against the company.
In late 2007 two former assistant managers filed a $75,000 class action lawsuit against Fastenal, claiming the Minnesota company violated the federal Fair Labor Standards Act by misclassifying its assistant managers in California as exempt from the FLSA and the corresponding state wage and hour laws.
“Fastenal misrepresented that assistant managers were exempt employees that should be paid on a salary basis,” contended plaintiffs’ attorney Paul Lukas. “In reality, the assistant managers performed non-exempt work; they did not have management duties and did not supervise other employees.”
The former employees worked for Fastenal in California and Pennsylvania. Web: fastenal.com �2008 FastenerNews.com
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