Family Dollar Could Be on the Hook for $14M in Wages Lawsuit

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Published September 12, 2012

| FOXBusiness

Family Dollar (FDO) agreed to a multi-million-dollar preliminary settlement on Wednesday to resolve claims by more than 1,700 New York store managers for overtime wages.

The Matthews, N.C.-based discount retailer said terms of the settlement have not yet been finalized, as any final decisions would require court approval. However, their agreement calls for a maximum payment of $14 million.

The workers had complained that they were forced to work extensive overtime hours but were not being compensated. Family Dollar expects to record a one-time charge for the settlement in the fourth quarter of fiscal 2012.

In a similar class action suit of 1,400 store managers, Family Dollar had to pay $35 million in back wages, damages and attorney’s fees in 2009 when a court ruled store managers were entitled to overtime.  

Shares of Family Dollar were higher by less than 1% early Wednesday, at $63.33.

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http://www.foxbusiness.com/industries/2012/09/12/family-dollar-may-pay-up-to-14m-in-settlement-with-managers/