Office Depot has agreed to pay $3.3 million to settle a class-action lawsuit alleging the company misclassified assistant managers in Colorado as exempt from overtime, attorneys for the plaintiffs tell the Denver Post. The settlement was reached just before a trial was to begin.
In the lawsuit, more than 100 former and current assistant managers alleged that most of their time during their 50-hour workweeks was spent on non-supervisory tasks, such as stocking shelves and assisting customers, the newspaper notes. Colorado defines an exempt supervisory employee as one who spends a minimum of 50 percent of the workweek in duties directly related to supervision. The Associated Press reports that the company tried unsuccessfully to have the case moved to federal court.
Companies that don’t properly classify their workers risk expensive legal battles.
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