Rite Aid Store Managers Overtime Class Action Settlement Details Revealed

Primary plaintiff Yatram Indergit filed the Rite Aid class action lawsuit in October of 2008. As a Rite Aid manager working for almost 30 years in White Plains, New York, Indergit claimed in the class action lawsuit that he and several other Rite Aid managers failed to receive overtime pay as mandated under federal and New York statutes.

Although court documents show Rite Aid store managers received salary compensation, Indergit argued that managers often performed the job functions required of hourly employees. The lead plaintiff alleged Rite Aid pressured managers to let employees go home early, with the remaining hourly employee work performed by salaried managers. Rite Aid classified managers as exempt from federal employment law protections that mandate overtime pay for hourly employees. Indergit claimed the exemption of salaried managers led him and other Rite Aid managers to put in as much as 80 hours per week.

Terms of the class action settlement require Rite Aid to set up a $5.5 million fund for distribution to eligible class members and to Indergit as incentive for filing the class action lawsuit. Settlement funds also pay for court costs and attorney fees. Rite Aid continues to deny breaking federal and state employment laws, but the company settled the class action lawsuit to avoid the high costs associated with protracted litigation.

What You Need To Know About The Rite Aid Store Managers Overtime Class Action Settlement

The class action settlement created two plaintiff classes. According to class counsel, “the New York State law class covers those who worked in the state of New York at any time from Oct. 30, 2002 through the present. The FLSA class covers those who worked in any other state at any time from March 31, 2007 through the present and who previously filed a consent to join this case.” Eligible class members can opt out of the class action settlement or dispute any provisions of the agreement by October 10, 2017. The potential award depends on the number of weeks an eligible class member worked as a store manager for Rite Aid during the two specified class periods.

Qualifying class members have until November 7, 2017 to submit valid claim forms. The judge presiding over the class action settlement case Indergit v. Rite Aid Corp. and Rite Aid of New York Inc. Case No. 1:08-cv-09361, in the U.S. District Court for the Southern District of New York has scheduled the final hearing on November 11, 2018. To learn what transpired at the final hearing, visit the class action settlement website www.sm2008settlement.com. The class action settlement website also presents the list of attorneys who represent the class and defense counsels, as well as updates about the amount of the potential award.