Family Dollar Could Be on the Hook for $14M in Wages Lawsuit
Family Dollar (NYSE: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.