Employee misclassification settlements occur when employers incorrectly categorize workers as independent contractors or exempt employees to avoid providing benefits like overtime pay, minimum wage, and other protections guaranteed under labor laws. These settlements typically involve substantial compensation, as seen in the $11 million Longs Drug Store settlement obtained by Kingsley Szamet Employment Lawyers. 

$11,000,000 Settlement for Misclassified Managers and Assistant Managers

Case Background

Type of Case: Employee Misclassification
Settlement Amount: $11,000,000.00

In a significant legal victory, Longs Drug Store has reached a groundbreaking $11,000,000.00 settlement in a case involving the alleged misclassification of its managers and assistant managers. This landmark victory demonstrates Kingsley Szamet Employment Lawyers' commitment to holding employers accountable when they misclassify employees to avoid providing legally required benefits and protections. Our legal team's success in this case reinforces the legal principle that employers must classify workers based on their actual job duties, not merely by title or designation.

Employee Misclassification Allegations

Longs Drug Store was facing allegations that it had improperly classified certain employees as managers and assistant managers, thereby denying them certain benefits and protections afforded to non-exempt employees. The misclassification raised concerns about overtime pay, rest and meal breaks, and other labor-related issues.

Legal Advocacy and Dedication

Our legal team displayed unwavering dedication in pursuing justice for the affected employees. We meticulously investigated the alleged misclassifications, gathered evidence, and engaged in negotiations to ensure that the rights and entitlements of the employees were protected. This case exemplifies our commitment to advocating for the rights of workers and holding employers accountable for any improper labor practices.

The Settlement

The $11,000,000.00 settlement reached in this case signifies a significant step toward addressing the alleged misclassifications and ensuring that employees receive the compensation and benefits they are entitled to under the law. The settlement provides affected employees with fair compensation for any potential wage and labor law violations. Our firm's proven track record of successfully challenging corporate misclassification practices demonstrates our expertise in this increasingly important area of employment law, protecting workers from exploitation while ensuring employers are held accountable for proper classification based on actual job duties rather than convenient designations.

Warning Signs of Employee Misclassification: Are You Really a Manager?

Many retail and service industry employees with "manager" or "assistant manager" in their job titles might actually be performing primarily non-managerial duties. Here are some signs that you might have been misclassified: 

• You lack genuine authority to hire or fire. True managers have significant influence over personnel decisions. If your recommendations about hiring, firing, or employee advancement are routinely ignored or you don't make such recommendations at all, this suggests misclassification.
• You spend most of your time on non-managerial tasks. Do you spend the majority of your shift stocking shelves, ringing up customers, providing customer service, or performing other routine work? If less than 50% of your time is spent on genuine management duties, you may be misclassified.
• You have limited decision-making power. Exempt managers should have discretion to make significant business decisions without constant approval. If you must get permission for routine operational matters, this points to potential misclassification.
• You're paid barely more than those you supervise. When the pay differential between you and non-exempt employees is minimal - especially when accounting for the overtime they receive that you don't - this often signals misclassification.
• You have little control over your work schedule. True managers typically have greater schedule flexibility and autonomy. If your schedule is rigidly controlled like hourly workers, this supports a non-exempt classification.
• You don't supervise at least two full-time employees. California law generally requires that exempt managers regularly direct the work of at least two full-time employees or their equivalent.
• Corporate sets detailed procedures for most aspects of your job. When you're primarily following prescribed corporate protocols rather than exercising independent judgment, you're functioning more as a production worker than a bona fide manager.
• You're regularly required to cover non-managerial shifts. If you routinely fill in for cashiers, salespeople, or other hourly positions when the store is short-staffed, you're likely performing non-exempt work.

If several of these warning signs apply to your situation, you may be entitled to significant back pay for unpaid overtime, missed breaks, and other labor violations. The Longs Drug Store case demonstrates that companies can be held accountable for misclassification, but time limitations apply to these claims.

Additional Misclassification Settlements

Explore additional employee misclassification cases by clicking on these recent victories secured by Kingsley Szamet Employment Lawyers:

• $11,000,000.00 Settlement for Misclassified Managers & Assistant Managers
• $1,700,000.00 Settlement Misclassified Managers & Assistant Managers
• $1,500,000 Settlement - National Home Builder

Get Help With Your Employee Misclassification Claim

If you have concerns about your employment classification or believe that you have been misclassified, please do not hesitate to reach out to us. Our legal team is ready to provide guidance and support to protect your rights and ensure fair treatment in the workplace. Contact us today for a free consultation with our experienced Los Angeles Employment Attorneys to discuss your situation.