Rite Aid Settles Wage-and-Hour Class Action for $20.9 Million

By on January 14, 2013

Pennsylvania-based Rite Aid Corp. announced that a judge has agreed to finalize a $20.9 million settlement for a wage-and-hour class action lawsuit which alleged the retail drugstore chain did not pay overtime.  The consolidated lawsuit, which had combined 14 class actions across the country, claimed Rite Aid inappropriately classified assistant store managers and co-managers as exempt employees who are not entitled to overtime pay, and as a result of these improprieties, violated the Fair Labor Standards Act (FLSA).

As a result of the settlement, members of the class will receive remuneration based on the number of hours worked during the class period.  Members are expected to get an average payment of $1,845.

The tentative settlement was first announced in June 2012.

The lawsuit was pending in the Middle District of Pennsylvania.