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Rite Aid will pay $20.9 million to settle overtime suit

Plaintiffs say the drugstore chain misclassified them

A decade of litigation against Rite Aid Corp. is finally ending.

The third-largest drugstore chain yesterday agreed to pay up to $20.9 million to settle allegations dating back to 2002 that it violated wage and hour labor laws.

Plaintiffs in 15 wage and hour collective actions and class actions comprising Rite Aid assistant managers and co-managers accused the retailer of misclassifying them and failing to pay them overtime wages for working more than 40 hours a week.

A court still must approve the proposed agreement, which would cover more than 6,000 current and former Rite Aid associates.

In a statement, Rite Aid denied any wrongdoing and said it believes its previous classification of assistant managers and co-managers was lawful.

Read the Wall Street Journal and Bloomberg for more about information.

Ashley Post

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