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LAWSUITS NEWS & LEGAL INFORMATION

Preliminary $500K Settlement Reached in Abercrombie & Fitch Unpaid Overtime Class Action Lawsuit


This is a settlement for the Abercrombie and Fitch Employment Discrimination Lawsuit lawsuit.

Philadelphia, PA: A $575,000 settlement has received preliminary approval in the unpaid overtime class action lawsuit pending against Abercrombie & Fitch Co. The lawsuit, filed by lead plaintiff Paul Oliver in November 2012, alleged the clothing retailer had violated the Pennsylvania Minimum Wage Act with its overtime wage policy.

This week, a state judge in Pennsylvania granted the approval, creating a class of 702 plaintiffs, consisting of all eligible A&F employees in that state between November 2009 and the beginning of January 2014.

According to Pennsylvania state law, employees are entitled to overtime wages that are at least 1.5 times the regular rate. Oliver filed the employment class action against Abercrombie alleging that the retailer, which operates at least 44 stores in the state, relies on an overtime calculation that violated the PMWA. Under a fluctuating work week, which is the model Abercrombie used, non-exempt employees get paid a fixed amount per week and receive half their hourly wage for each hour of overtime. This system is allowed under the Federal Labor Standards Act (FLSA), but is, Oliver alleged, in violation of state employment law.

Under the terms of the settlement, Oliver will receive $7,500 for bringing the lawsuit and acting as lead plaintiff. "Based on plaintiff' counsel' review and analysis of the relevant payroll data, the $403,750.00 in available class member payouts will enable each participating class member to recover (free and clear of attorneys' fees) over 50 percent of his/her alleged unpaid overtime during the class period,"according to the settlement.

The case is Oliver v. Abercrombie & Fitch Co., case number 121102571 in the Philadelphia County Court of Common Pleas.

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Published on Mar-28-14


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