Price Shopper Settles Lawsuit for Unpaid Overtime

Price Shopper  was sued in 2014 for misclassifing workers as “team leaders” and “department managers” in order to avoid paying them overtime when they work more than 40 hours a week without overtime pay. During the lawsuit, there was a hearing to determine if Price Chopper’s FLSA Audit was protected from discovery under the attorney-client privilege. The Plaintiffs argued that the Defendant forfeited reliance on the attorney-client privilege as to the FLSA Audit documents by pleading a good faith defense to the FLSA.  This is a common problem in many overtime cases concerning misclassification of workers under the FLSA or state wage and hour laws.  Two months after the court ruled on the motion for in camera review of documents withheld by Price Shopper, the company settled the lawsuit.  In an April 17, 2017 status report, the parties announced that they have reached an settlement agreement in principal and are working on finalizing the agreement and will report back to the Court within thirty (30) days.


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