Dollar General Store Sued for Unpaid Wages

Dollar General, a discounted retail chain store with over 15,000 locations nationwide, has just been sued for failing to pay its employees with the proper wages. The class action lawsuit alleges that the chain owes its store managers back pay after it incorrectly classified them as exempt from receiving overtime even though their primary job duties were non-exempt manual labor tasks. The allegations also included violations on how the Dollar General executed payment to its New York employees via payroll debit cards.

Managers employed by Dolgen New York LLC, Dolgencorp of Texas, Inc. and Dollar General Corporation claimed to consistently work way over 40 hours per week without being compensated for overtime. Despite their job title of store manager, the retail store had them completing manual labor tasks for over 90 percent of their time on duty. Some of these responsibilities included lifting and moving shipment boxes into the stores, opening and unpacking boxes, separating merchandise and price tagging them, as well as moving priced items to the appropriate shelves. Additionally, store managers did not have the authority to fire employees, set their rates of pay, determine inventory orders or enter into legally binding contracts for the store. The job duties of these store managers more closely resemble those of an hourly employee entitled to overtime pay under the law.

The retail store also paid its employees at its New York locations with a payroll debit card but allegedly failed to complete payment in accordance with the New York Labor Law and its supporting regulations.  Employees of these New York locations claimed that the company violated the law by not obtaining their with informed written consents, failing to provide access to ATM machines that did not incur them fees when withdrawing cash, charging them fees for cashback use of the payroll debit cards, and including expiration dates on the payroll debit cards issued to them. 

Unfortunately, it is a common practice in the retail industry to incorrectly classify employees such as managers and assistant managers as salaried workers exempt from overtime pay. It is important to remember that it is your job duties and not the title itself that dictates how you should be compensated under the law. If you spend most of your time completing non-exempt work, such as manual labor, you are likely entitled to overtime pay when working over 40 hours per week. If you’ve worked for the Dollar General or another retail store in the industry and have concerns about your pay, give us a call for a free and confidential consultation at (212) 300-0375 or visit our website for additional information. Fitapelli & Schaffer, LLP has over ten years experience championing the rights of hard working Americans and will be able to let you know if you a claim for owed wages or may be covered by this lawsuit.

You can also view the complaint here.