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Longs Drug Stores Inc. says it has agreed to pay $11 million in tentative settlements of two lawsuits alleging the company violated California wage and hour law, the Associated Press reports. In the lawsuits, store managers in California accused the company of misclassifying them as exempt from overtime pay.
The drugstore chain denied any wrongdoing, the news service notes, but decided to settle the case to avoid lengthy litigation. "Given the unique aspects of California wage and hour laws, which differ significantly from federal and other state laws, we believe this settlement is in the company’s best interest," says William J. Rainey, a senior vice president and general counsel at the company. A court must approve the settlements.
Companies that misclassify workers may have to pay the price for their mistakes.
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