Employee issues
Rite Aid Corporation settled out of court recently, agreeing to pay up to $20.9 million to settle lawsuits brought by salaried assistant store managers and co-managers who claim they were owed overtime pay due to the non-managerial aspects of their jobs.
According to CNNMoney, over 7,000 lawsuits were filed in federal court in 2011 alleging wage and hour violations under the Fair Labor Standards Act, an approximately 400% increase since 2000.
Rite Aid maintains that it has done nothing wrong, having complied with state and federal laws in its classification of assistant manages and co-managers as exempt from overtime pay requirements.
To avoid finding your business in a similar situation, be certain that you are compensating your employees in accordance with state and federal laws. In Pennsylvania, employers must follow either the federal or Pennsylvania overtime provision — depending on which law provides for the greater benefit to the employee.
For example, the Federal rules do not require overtime pay for certain computer-related occupations. However, Pennsylvania law currently requires overtime for computer employees. Accordingly, since the Pennsylvania provision provides a greater benefit to the computer-related employee, overtime must be paid.
For assistance understanding Pennsylvania and federal wage laws, and making sure your business is in compliance, the attorneys at the Scolieri Law Group, P.C. can help. Located in western Pennsylvania, our attorneys are experienced in Pennsylvania business law and can help you navigate regulations affecting your business. Contact us today at (412)765-0546 or info@scolierilaw.com.