Payless Shoes Reaches $2.9M Employment Class Action Settlement

Los Angeles, CA: A $2.9 million settlement has been reached in an employment class action lawsuit pending against Payless Shoesource Inc, ending allegations that the retailer violated the Fair Labor Standards Act (FLSA) by misclassifying its store managers as a means of avoiding overtime pay.

According to the terms of the settlement agreement, two thirds of the funds will be shared among the 2,197 class members. According to court documents, most of the plaintiffs worked as store managers or leaders at Payless retail outlets from March 2011 on.

In 2006, Payless faced a similar lawsuit when employees in Mississippi alleged the shoe retailer had violated the FLSA by routinely requiring managerial employees to work 60 to 90 hours a week, and making them perform non-managerial tasks without paying them overtime. That case was settled out of court and the terms remain confidential.

This latest case is Shallin et al v. Payless Shoesource, Inc. et al, case number 3:14-cv-00335, in the United States District Court for the District of Connecticut.

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Published on Feb-19-15