EMPLOYMENT LITIGATION

Dollar General Store

Issues: Overtime Wages, Pay Card Violations 

Summary:

On Friday, April 24, 2020, Fitapelli & Schaffer, LLP filed a class action lawsuit against the discounted retail chain store, Dollar General, for unpaid wages. The chain which operates over 15,000 stores nationwide employing over 150,000 workers has allegedly failed to pay its salaried store managers (“Managers”) appropriate overtime. This lawsuit seeks to recover unpaid overtime compensation and other damages for salaried store managers, as well as compensation for all store employees in New York who were paid via payroll debit cards. 

Dolgen New York LLC, Dolgencorp of Texas, Inc. and Dollar General Corporation allegedly classified Managers as overtime exempt and did not provide them with any overtime premium wages for hours that they worked in excess of 40 hours per workweek. Managers claim their primary job duty was “packing out” or moving freight from shipments into the stores priced inventory. Managers spent the majority of their time performing non-exempt manual labor tasks such as lifting and moving boxes of up to 55 pounds, opening and unpacking boxes, separating items and price tagging them, and moving tagged items to shelves. Furthermore, Managers had no authority to fire employees, could not set rates of pay for employees, did not determine inventory orders, and could not enter the store into legally binding contracts. In this regard, Dollar General improperly categorized Managers as overtime exempt employees.

The chain store would also pay its employees at its New York locations via a payroll debit card. An employer is only allowed to pay its employees in this manner, if they follow the strict regulations of the New York Labor Law and its accompanying regulations. Dollar General allegedly  violated these requirements  by: (1) failing to get informed written consent from Managers and New York employees; (2) failing to provide Managers and New York employees with one or more automatic teller machines (“ATM”) that could be used to withdraw cash with the payroll debit card without incurring a fee; (3) charging fees for cashback use of the payroll debit cards; and (4) including expiration dates on the payroll debit cards issued to Managers and New York employees. 

Often times, retail companies improperly classify employees such as managers and assistant managers as exempt from overtime pay when they deserve to be paid for all of their hours worked plus time and a half when working over 40 hours in one workweek. If you, or anyone you know, has worked for the Dollar General and has questions or concerns about their pay do not hesitate to give us a call for a free and confidential consultation at (212) 300-0375 or visit our site here. One of our representatives will be able to let you know if you may be covered by this lawsuit or if you may have an additional claim.

You can also view the filed complaint here.