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On October 31, 2002, Touhy & Touhy, Ltd., filed a nationwide class action against RadioShack Corporation
for wrongfully denying overtime pay due to current and former employees. The lawsuit charges that RadioShack
violated Federal Law by misclassifying employees as store management to avoid paying overtime wages as required
by the Fair Labor Standards Act (FLSA).
FLSA Provisions
Under the FLSA, employees are entitled to time-and-a-half pay for each hour over 40 hours worked in a workweek,
unless they are exempt from the Act. The FLSA stipulates that employers do not have to pay overtime to higher
level workers in executive, administrative and professional jobs.
However, the mere fact that an employee is given a title, classified by an employer as exempt and paid on a salary
basis does not automatically remove that employee from the protection of the FLSA. Rather, determinative factors include
whether the primary duties and responsibilities of the employee comply with applicable federal standards and are commonly
associated with management.
Current Action
In the current case, RadioShack employees, misclassified as "Y" Store Managers were required to work in excess of 50 hours
per week and were paid a minimal base salary. These employees spent most of their 50 hour plus workweeks engaged in non-managerial
duties such as sales, pricing and store maintenance. They have not been compensated for overtime.
Our primary goals of this class action are to:
- prohibit RadioShack from failing or refusing to pay overtime wages to employees misclassified
as Store Management;
- recover lost overtime wages and other just damages for employees who were misclassified and
denied overtime payment; and
- prevent RadioShack from denying overtime wages in the future.
If you have any information or questions regarding this matter – or if you believe you meet the criteria – we strongly
urge you to contact us immediately. For more information regarding your legal rights, click here to view
the Proposed Radio Class Action Notice and
Opt-in Consent Form.
Please note: Because of time limits associated with this type of case, it is important that we hear from you as soon as possible. Simply
print out the Opt-in Consent Form, sign it and mail it to the
address indicated.
Click here to view the official RadioShack class action website.
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