Dick's Sporting Goods Inc. agreed to pay up to $15 million to settle a class-action lawsuit brought by current and former employees who say they weren't properly paid overtime and were made to work through breaks.
An agreement reached between the sporting goods chain and plaintiffs’ attorneys settles class-action claims under 36 states’ laws, Dick’s Sporting Goods said in a Securities and Exchange Commission filing.
The suit was originally filed on behalf of an employee, Tamara Barrus of Brockport, NY, in the U.S. District Court for the Western District of New York. After dozens of other current and former Dick’s Sporting Goods workers joined the action, the court certified the case as a class action in 2006. The SEC filing states the settlement agreement also covers 22 other related wage and hour class action lawsuits that have been pending against the company and five individual defendants.
Under the settlement, the total amount to be paid will depend on the number of claims that are submitted by class members with a maximum settlement amount not to exceed $15 million plus interest and taxes. DKS said it will take a charge of $15.5 million ($9.3 million after tax) in its fourth quarter to cover the settlement and related fees.
