Sears/Kmart Agree to Pay $5 Million to Settle Worker Overtime Claims

Sears Holdings Management Corporation (“Sears”) agreed today to pay up to $5 million to resolve unpaid overtime class action claims brought by current and former salaried Loss Prevention Managers (“LPMs”) employed by Sears and/or Kmart stores. The lawsuit alleged that Sears violated Fair Labor Standards Act’s (“FLSA”) overtime wage provisions by misclassifying salaried LPMs as exempt and not paying them overtime. Court approval of the proposed settlement is pending.

If approved by the court, the settlement includes salaried, exempt LPMs that have already filed a “Consent Form” in the case and who worked in full-line Sears, Roebuck & Co. stores and/or Kmart stores at any time during the three years before filing the Consent Form. LPMs who did not file a “Consent Form” but who worked in a full-line Sears, Roebuck & Co. store and/or Kmart store in California, Illinois, New Jersey, New York (Sears only), Oregon, Pennsylvania, or Washington during certain time periods may also participate. The case is O’Toole, et al. v. Sears, Roebuck and Co., et al., No. 1:11-cv-04611. 

If you believe your employee rights were violated, contact a Houston overtime lawyer at Bailey Cowan Heckaman PLLC today!