$2.9 Million Settlement – Payless

As a result of this case, Payless paid more, $2.9 million more, in a Connecticut FLSA settlement with store managers seeking overtime wages. The store misclassified the employees in a move to avoid paying them overtime.

Following on the increase in wage class actions, this week brings us a hefty settlement for shoe retailer, Payless Shoesource Inc. Last March, former Payless store managers filed suit in Connecticut federal court, accusing the company of misclassifying them as exempt and failing to pay them overtime.

In the Shallin, et al v. Payless ShoeSource case, the Federal District Court approved $2.9 million collective action settlement for store leaders and store managers in identified classes. These employees were denied overtime pay because their employer, Payless, misclassified their positions as exempt.