Overtime woes plague shuttered grocery store chain

A Chicago-based chain of grocery stores that recently closed its doors will pass along an accusation of overtime discrepancies from managerial employees to its parent companies.

In all, 19 former employees who worked in a supervisory capacity in the chain's general merchandise department have filed suit in U.S. federal court, according to local NBC affiliate WMAQ. The exact amount of damages sought by the group has not been announced.

The workers claim that they weren't paid overtime when they worked more than 40 hours in a week, a violation of the federal Fair Labor Standards Act and Illinois state law. They also allege that the company regularly underreported hours worked, resulting in lower pay than what was earned.

The FLSA is extremely clear in its requirements for overtime pay - any time worked past the 40-hour benchmark in a given week must be paid out by the employer at a rate of one-and-one-half the regular hourly wage. Although the supermarket chain has not responded to the allegations publicly, it's possible that they had claimed the workers qualified for an exemption from overtime pay requirements.

Businesses keeping accurate and detailed pay records through the use of employee management software can use that documentation to protect against litigation.

Related Headlines