Two Dollar General store managers who accused the company of misclassifying them as exempt from overtime reached a deal resolving their wage-and-hour dispute, the parties told a federal court in Alabama.

Amy Ingram and Tammy Buckelew agreed to drop their would-be Fair Labor Standards Act collective allegations against the discount chain with prejudice in exchange for nearly $6,000 combined, plus more than $4,000 in attorneys’ fees and expenses, according to a joint settlement approval motion filed in the US District Court for the Northern District of Alabama.

Ingram and Buckelew both signed arbitration agreements including class and collective action waivers, the motion said. They agreed to pursue a settlement rather than litigate over whether Dollar General could compel arbitration, according to the filing.

The pair alleged that Dolgencorp LLC, a Dollar General Corp. subsidiary based in Tennessee and doing business as Dollar General, misclassified them as salaried exempt workers when they should really be hourly and entitled to overtime pay.

Workers like Ingram and Buckelew are managers in name only and spend most of their time on manual labor such as stocking shelves, unloading trucks, and cleaning store bathrooms, according to their July complaint, which didn’t name Dollar General Corp. as a defendant.

The deal provides $2,600 for Buckelew and more than...

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