A federal jury in Newark has awarded $2.5 million in damages to 343 sales managers employed by office superstore Staples.
The court determined the retailer misclassified the managers as exempt from the Fair Labor Standards Act () when they were not. As a result, the managers were not paid overtime.
Staples maintained it carefully examined the situation to comply with the FLSA, but the jury disagreed. It ruled Staples willfully violated the overtime.
The court has not yet decided whether it will exercise its option to double the damages, as it can in cases involving willful violation of the law.