Dick's Settles Failure to Pay Overtime Accusations for $10m

A group of six workers employed by Dick's Sporting Goods Inc. in several states outside of Texas filed suit against the athletic retailer. Dick was accused by the employees of a failure to pay overtime because they believed that they were misclassified. This case will also cover other workers who were in the same class in the three years prior to these proceedings.

The plaintiffs all worked in different managerial positions throughout the company. As such, Dick's had classified their positions as exempt. This would prevent them from earning overtime pay in accordance with the Fair Labor Standards Act when they worked more than 40 hours per week.

The workers maintain that even though they were paid on salary, the type of work that was performed did not meet the FLSA managerial exceptions. They allege that the work they performed was not managerial in nature. The plaintiffs claim that they were not able to discipline or fire or hire workers, nor were they able to supervise other employees.

Dick's agreed to settle the class-action lawsuit for $10 million dollars and the settlement has been preliminarily approved by a federal judge. This is not the first time that Dick's has been accused of labor violations and in 2011 paid $15 million because employees were not compensated for time spent when they worked through their rest periods or stayed past their shifts. Even though Dick's agreed to settle the failure to pay overtime accusations, the company does not admit that it did anything wrong and still disagrees that it violated any laws. All positions that are labeled as exempt must follow the FLSA guidelines to qualify for the classification. Texas workers who question if their exempt positions are in line with the FLSA should consult with an employment law attorney to determine which claims may be pursued if any.

Source: bna.com, "Dick's to Pay $10 Million to Squash Overtime Suit", Chris Opfer, Dec. 17, 2015