Workers refused earned Compensation by local New York Grocery Store Chain
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A federal judge has ruled that Gristede’s, a New York based grocery shopping store violated federal and state laws by failing to pay overtime to hundreds of lower-level managers at its supermarkets.
After reviewing the case, it was determined the supermarkets’ department heads and so-called co-managers were hourly employees who were entitled to overtime pay. The 400 current and former managers are predicting a settlement of at least 25 million.
Gristede’s argued the employees were salaried executive workers and under federal and state law, are generally exempt from receiving time-and-a-half pay for overtime. However the judge assigned the case found they were not salaried because the company often deducted money from their paychecks when they missed part of a day.
The attorney for Gristede’s, said the company planned to appeal. He also stated Gristede’s policies are consistent with industry standards.” “These managers have been treated historically as salaried employees, not just by Gristede’s, but by the supermarket industry.”
As negotiations continue, it will be interesting to see the outcome of this case and whether or not the “employees” are deemed salaried or not.