Staples Inc., the office supply retailer, announced that it will pay $38 million to settle overtime claims brought by California employees.
The settlement, which came three days before the class-action case was set to go to trial in a Santa Ana superior court, ended a suit between 1,700 operations and sales managers in California who claimed they were misclassified as exempt executive employees under state law.
The employees’ attorney, Matthew Righetti, called the settlement “remarkable” and said it was one of the largest settlements ever in a dispute over California’s executive exemption. Staples, based in Massachusetts, issued a statement that “its store labor model, which is based on a commitment to fair and respectful treatment of its associates, is fully compliant with applicable California law.”
Final note:are hot. If you aren’t sure your company is fully compliant with both California and federal Fair Labor Standards Act , consult an attorney before it’s too late. Penalties can add up fast.