Lumber Liquidators to Pay $7M to Settle Class Action Overtime Claims

Parties in a class action lawsuit against Lumber Liquidators have asked a New York court to approve a settlement deal of approximately $7 million to resolve any state and federal wage claims by workers who allege the flooring retailer denied them overtime pay by misclassifying them as exempt.

In Ashleigh Mason et al. v. Lumber Liquidators, a group of former and current Lumber Liquidators store managers and store managers in-training filed suit in August 2017, alleging that they were denied overtime pay because the company had misclassified them as exempt, even though they regularly performed nonmanagerial duties. 

The workers were granted conditional certification as a class in May 2019. The certification was upheld in August 2019 after Lumber Liquidators sought to have a U.S. district court overturn it in a motion for reconsideration. The workers also won sanctions against the company after it attempted to arbitrate in a purported effort to waive workers’ rights to join the class.

The motion filed on July 17 seeking approval of the settlement argued that the settlement was appropriate in light of the risks of continuing litigation:

“Determining the legal status of manager positions under the FLSA is highly contextual and fact-dependent, and some cases support Lumber Liquidators’ position. While plaintiffs believe that they could ultimately establish defendant’s liability, this would require significant factual development.”

If approved by a New York federal court, the settlement deal would provide approximately $3.4 million in lost wages to 269 current and former store managers and managers-in-training who have already joined the class as well as 53 other similarly situated individuals who are qualified but have not yet opted in. The settlement will also provide $2.3 million to cover attorneys’ fees.

Upon approval, eligible plaintiffs would receive a settlement notice with a check. Payout amounts will vary depending on each plaintiff’s job title, the amount of overtime they worked, and whether they participated in a January 2020 settlement arising from similar claims against the company in California.

HBL has experience in all areas of benefits and employment law, offering a comprehensive solution to all your business benefits and HR/employment needs. We help ensure you are in compliance with the complex requirements of ERISA and the IRS code, as well as those laws that impact you and your employees. Together, we reduce your exposure to potential legal or financial penalties. Learn more by calling 470-571-1007.

The following two tabs change content below.

Hall Benefits Law, LLC

HBL offers employers comprehensive legal guidance on benefits in mergers and acquisitions, Employee Stock Ownership Plans (ESOPs), executive compensation, health and welfare benefits, healthcare reform, and retirement plans. We counsel a wide spectrum of clients including small, mid-sized, and large companies, 401(k) investment advisors, health insurance brokers, accountants, attorneys, and HR consultants, just to name a few. HBL is passionate about advising clients, and we are dedicated to our mission: to provide comprehensive, personalized, and practical ERISA and benefits legal solutions that exceed client expectations.
%d bloggers like this: