NEW YORK — The plaintiffs in a class action suit against Foot Locker for alleged violations of the Fair Labor Standards Act (FLSA) entered into a settlement agreement with the company for $7.15 million. The class includes all current and former Foot Locker employees who worked at least one hour from March 2007 to March 2010 as a retail employee but not as an assistant store manager or higher. According to the suit, Foot Locker failed to compensate the plaintiffs for maintenance work and time spent working before opening and after closing. The employees alleged that they were forced to do work off-the-clock or have their paid time shaved in order to complete their tasks. The company apparently enforced the compensation policy by tying the compensation of store managers to meeting a labor budget set by the corporate office and punishing managers if they exceeded the budget.
Retail Sales Employees Under FLSA
A retail establishment under FLSA is one in which 75% of the annual dollar volume of sales is not for resale and is recognized as retail in the particular industry. Employees of these establishments may be covered by FLSA in one of two ways. First, any retail establishment which is part of an enterprise with an annual dollar volume of sales of at least $500,000 must comply with FLSA. Secondly employees of retail establishments who are engaged in interstate commerce activities are “covered” on an individual basis.
For individual coverage, interstate commerce activities may include ordering goods from out-of-state, verifying and processing credit card transactions, using the mail or telephone for interstate communications, keeping records of interstate transactions, or handling, shipping, or receiving goods moving in commerce.
Hours Worked by Retail Employees
If covered, retail employees must be paid minimum wage. Additionally, covered retail employees are also entitled to overtime pay at a rate not less than one and one-half times the employee’s regular rate of pay after 40 hours are worked in a workweek. Employers must record and pay for all hours worked by employees including any time controlled by the employer. Where employees report to work at their scheduled time, the employer must begin counting that as work time regardless of whether it is before store opening or after store opening.
If you or someone you know has a claim for unpaid wages, you should call (855) 754-2795 or complete the Free Unpaid Overtime Case Review form on the top right of this page. Our top-rated team of overtime pay lawyers will evaluate your situation to determine your best course of action. We will also determine if it is in your best interest to file a lawsuit against your employer. There are strict time limitations for filing, so it is important that you call our experienced attorneys today.