From labor disputes cases to labor and employment publications, for your research, you’ll find solutions on Bloomberg Law®. Protect your clients by developing strategies based on Litigation...
Noodles & Company will pay $3 million to settle the overtime pay claims of a nationwide class of assistant general managers who said they were wrongly classified as exempt employees under the Fair Labor Standards Act ( Castillo v. Noodles & Co. , N.D. Ill., No. 16-3036, settlement approved 12/23/16 ).
A federal district court in Chicago Dec. 23 approved the agreement between the restaurant chain and four named plaintiffs to create a settlement fund for assistant general managers who worked for Noodles & Company at any time from Nov. 23, 2013, through Nov. 23, 2016.
Only eligible workers who “opt in” to the FLSA collective action will receive monetary awards.
Overtime pay lawsuits by employees called store managers, assistant store managers or similar titles aren’t unusual against retailers, including restaurants, department stores and convenience stores.
Such employees, who often work more than 40 hours a week but aren’t paid overtime for their extra hours, claim they are wrongly classified as exempt from the FLSA.
Their employers argue the salaried workers are managers properly placed within the FLSA’s “white-collar” exemption. But the employees contend their job duties don’t differ much from those of hourly workers and they exercise little or no managerial discretion.
Notable recent cases include Bob Evans Farms Inc.'s $16.5 million settlement of its restaurant assistant managers’ overtime pay claims and Panda Express Inc.'s $3 million settlement of its store managers’ claims.
Outside the restaurant industry, Kmart Corp. reached a $3.8 million settlement of assistant store managers’ overtime pay claims while Dick’s Sporting Goods Inc. settled for $10 million the overtime claims of its assistant store managers.
The Labor Department in fiscal 2016 obtained approximately $39.8 million in monetary relief for 44,707 food service workers alleging unpaid overtime or other FLSA violations, according to department statistics.
Judge Andrea Wood, in the Noodles & Company case, upheld $1 million in attorneys’ fees for the workers’ lawyers, to be paid from the settlement fund. The lawyers also will recover $32,621 for their litigation costs.
Four named plaintiffs will receive $10,000 each for their parts in litigating the case.
Noodles & Company doesn’t admit any FLSA violations by agreeing to the settlement.
An attorney for the workers declined to comment Dec. 28. The company and its attorneys weren’t immediately available for comment.
Outten & Golden LLP, Shavitz Law Group PA and Rowdy Meeks Legal Group LLC represented the workers. Jackson Lewis PC represented Noodles & Company.
To contact the reporter on this story: Kevin McGowan in Washington at firstname.lastname@example.org
Text of the court's approval is available at http://www.bloomberglaw.com/public/document/Castillo_et_al_v_Noodles__Company_Docket_No_116cv03036_ND_Ill_Mar and the settlement is at http://www.bloomberglaw.com/public/document/Castillo_et_al_v_Noodles__Company_Docket_No_116cv03036_ND_Ill_Mar/1 .
Copyright © 2016 The Bureau of National Affairs, Inc. All Rights Reserved.
All Bloomberg BNA treatises are available on standing order, which ensures you will always receive the most current edition of the book or supplement of the title you have ordered from Bloomberg BNA’s book division. As soon as a new supplement or edition is published (usually annually) for a title you’ve previously purchased and requested to be placed on standing order, we’ll ship it to you to review for 30 days without any obligation. During this period, you can either (a) honor the invoice and receive a 5% discount (in addition to any other discounts you may qualify for) off the then-current price of the update, plus shipping and handling or (b) return the book(s), in which case, your invoice will be cancelled upon receipt of the book(s). Call us for a prepaid UPS label for your return. It’s as simple and easy as that. Most importantly, standing orders mean you will never have to worry about the timeliness of the information you’re relying on. And, you may discontinue standing orders at any time by contacting us at 1.800.960.1220 or by sending an email to email@example.com.
Put me on standing order at a 5% discount off list price of all future updates, in addition to any other discounts I may quality for. (Returnable within 30 days.)
Notify me when updates are available (No standing order will be created).
This Bloomberg BNA report is available on standing order, which ensures you will all receive the latest edition. This report is updated annually and we will send you the latest edition once it has been published. By signing up for standing order you will never have to worry about the timeliness of the information you need. And, you may discontinue standing orders at any time by contacting us at 1.800.372.1033, option 5, or by sending us an email to firstname.lastname@example.org.
Put me on standing order
Notify me when new releases are available (no standing order will be created)