Kmart Corp. has agreed to a $3.8 million settlement in federal court in Trenton of two collective actions on behalf of assistant managers who claim they were wrongly classified as exempt from overtime pay in violation of the Fair Labor Standards Act and state labor laws.
Plaintiffs in the case moved for preliminary approval of the settlement May 24. With a class estimated at 422 individuals, gross recovery would average roughly $9,000 per person, depending on how long they worked for the company, according to the motion, which seeks preliminary certification of the class and scheduling of a final approval and fairness hearing. The settlement would encompass a suit filed in the U.S. District Court for the District of New Jersey, Fischer v. Kmart, and another in the Western District of New York, Hautur v. Kmart.
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