Dollar General Faces Another Lawsuit Tied to Overtime Pay

posted on:
August 31, 2006


WASHINGTON-Dollar General Corp. (DG) said Thursday that a lawsuit was filed against it in Alabama on Aug. 7,2006 by some current and former store managers relating to overtime pay.

The Goodlettsville, Tenn., discount retailer said in its quarterly report filed with the Securities and Exchange Commission that the plaintiffs claim they were improperly classified as exempt employees under the Fair Labor Standards Act.

Dollar General said the plaintiffs are seeking to recover overtime pay, liquidated damages and attorneys’ fees and costs.

The company said the lead plaintiff, Cynthia Richter, filed a motion with the court Aug. 15 to certify a nationwide class of current and former managers. Dollar General said it plans to oppose her motion, adding that it believes its store managers have been properly classified as exempt employees under the Fair Labor Standards Act. The lawsuit, “Cynthia Richter et al v. Dolgencorp Inc. et al,” was filed in the U.S. District Court for the Northern District of Alabama.

On Aug. 4, 2004 Dollar General announced that a judge in the same court decertified a class-action lawsuit filed against the company. The class, which had consisted of 2,500 people, sought overtime pay, damages, fees and costs from the company. The judge, however, allowed the 12 named plaintiffs in the lawsuit to proceed with their case.

Dollar General’s shares recently traded at $12.61 each, up 50 cents, or 4.1%.

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