Defunct grocery chain being sued for unpaid overtime

A now defunct, Chicago-based grocery store chain is being taken to court by two former managers for time and attendance violations related to unpaid overtime. NBC Chicago, citing an article originally appearing in the Chicago Sun-Times, says the lawsuit was filed against the parent company of the chain on Feb. 28, and in addition to the two primary plaintiffs, 17 more could join the class-action suit as well.

Outside of the unpaid overtime, the lawsuit also alleges the company purposely underreported employee time worked. The litigants are seeking back pay and other compensatory damages.

The two plaintiffs who first initiated the lawsuit were managers at the company, a designation under the Fair Labor Standards act that makes them ineligible, or exempt, from receiving overtime pay regardless of the number of hours worked above 40 in any given week. This employee classification also affected general merchandise managers and assistant merchandise managers of the grocery chain, which ceased operations in the Chicago area in December 2013.

Both the Chicago-based store and its parent company are being sued for violations under the Illinois Minimum Wage Law and the FLSA.


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