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Fastenal Company announced August 29, 2008, that it will pay $10 million to settle a class action lawsuit by former employees who sued for unpaid overtime and work-break pay. The employees, all Assistant General Managers, alleged they were wrongly classified as exempt from overtime under the Fair Labor Standards Act and California, Oregon and Pennsylvania state statutes. The suit also alleged that Assistant General Managers in California did not receive sufficient meal breaks and paid rest periods under the California Labor Code.
While the company denies the allegations underlying the lawsuit, it has agreed to enter into the settlement agreement in order to avoid significant legal fees, the uncertainty of a jury trial, distractions to Fastenal's operations, and other expenses and management time that would have to be devoted to protracted litigation. The settlement, which is still subject to court approval, fully resolves all claims brought by the plaintiffs in the lawsuit. Pursuant to the settlement, Fastenal will make a cash payment of $10 million to cover claims by eligible class members, plaintiff attorneys' fees and costs and payments to the named plaintiffs.
Fastenal, based in Winona, Minnesota, sells different types of industrial and construction supplies and operates 2,289 stores in all 50 states.
Source: Fastenal Company
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