Fresh Mark Settles Overtime Pay Suit for $3.7 Million

Posted by: Brian Schaffer

A federal judge approved a $3.7 million settlement between Fresh Mark Inc. and a class of employees in Ohio, resolving unpaid overtime claims. The settlement provides for a portion of the fund to be distributed among covered current and former nonexempt production employees.

What Did the Fresh Mark Workers Allege?

The plaintiff alleged that he worked 40 to 60 hours per week but was paid only for scheduled shift time. He claimed that time spent putting on and taking off required personal protective equipment before and after shifts should have been compensated.

What Did the $3.7 Million Settlement Resolve?

The case centers on whether required pre-shift and post-shift activities were compensable work and whether the resulting unpaid time affected overtime. The settlement is not an admission of wrongdoing by the company.

An inquiry doesn’t establish that a claim exists, guarantee that the firm can accept the matter, or create an attorney-client relationship. This page provides general information, not legal advice. Don’t send confidential or time-sensitive information through an online form. Prior results don’t guarantee a similar outcome.

FREQUENTLY ASKED QUESTIONS

Is time spent putting on and taking off protective gear compensable in a meat-processing plant?

It can be. In workplaces where protective equipment is required for the principal job, pre-shift and post-shift changing activities can raise compensable-time issues under the FLSA. The legal analysis can depend on the type of gear, the activity’s relationship to the work, collective bargaining provisions, and other facts. The Fresh Mark lawsuit alleged that production employees weren’t paid for time spent changing into and out of required protective equipment.

Can unpaid pre-shift time create overtime even if employees are paid for 40 scheduled hours?

Yes, potentially. Overtime is based on compensable hours worked, not merely scheduled or recorded hours. If required pre-shift or post-shift activities add enough compensable time to push a nonexempt employee above 40 hours in a workweek, additional overtime may be due. Repeated minutes can accumulate across multiple shifts. The Fresh Mark case alleged that employees working substantial weekly hours also performed unpaid changing activities around their shifts.

What does final approval of an FLSA settlement mean?

Final approval generally means the court has reviewed the proposed resolution and authorized the settlement to take effect under the applicable procedure. It doesn’t necessarily mean the employer admitted the allegations or that the court made a trial finding of liability. The approved agreement controls matters such as the covered group, allocation of funds, fees and costs, releases, and administration. Workers should distinguish the total settlement fund from the amount distributed as wage-related payments to class or collective members.

Why can the amount paid to workers be less than the headline settlement amount?

A gross settlement figure can include more than direct payments to workers. Depending on the court-approved agreement, the fund may also cover attorneys’ fees and litigation costs, service awards, settlement-administration expenses, taxes, or other authorized amounts.

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