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Family Dollar: 1 win, 1 loss in overtime litigation

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in Leaders & Managers,Management Training

Discounts are scarce for retailer Family Dollar, which will begin paying out an estimated $35 million to employees it misclassified as exempt from overtime laws in Alabama.

That’s $16 million more than an Alabama jury originally awarded. After the federal judge in the case boosted the award, Family Dollar appealed and lost. Its last hope vanished when the U.S. Supreme Court declined this fall to hear the case.

A similar case in North Carolina resulted in a Family Dollar victory. A federal court ruled the discount chain’s employees were managers and therefore exempt from overtime rules. The split decision leaves employers with little guidance.

For Family Dollar it’s one win, one loss—and $35 million and tens of thousands in legal fees down the drain.

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