Defendant(s)
New York
A proposed class and collective action alleges Costco Wholesale Corporation has unlawfully deprived junior managers of overtime wages by misclassifying them as exempt employees.
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The 21-page lawsuit was filed by three New York residents who worked as junior managers at Costco locations throughout the state and say they regularly worked more than 40 hours a week without overtime wages. Although the federal Fair Labor Standards Act (FLSA) and the New York Labor Law (NYLL) permit managers and other executives to work overtime without extra pay, Costco junior managers do not fit the definition of an “executive” under these laws and are therefore entitled to time-and-a-half wages for every hour worked over 40 per week, the suit claims.
However, the complaint charges that Costco pays junior managers a fixed weekly salary regardless of how many hours they actually work.
For example, one plaintiff claims he was routinely scheduled to work at least 45 hours each week. However, a paystub he received from Costco reflecting the two workweeks between December 6 and December 19, 2021 stated that his salary was to pay him for only 80 hours of work at $34.13 an hour, the filing contends.
Costco neglected to report all the time that its junior managers worked in order to “obfuscate [its] unlawful overtime policy,” the...
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