Published on:

CVS Settles Employee Class Action Wage and Hour Dispute for $2.9 Million

The federal Fair Labor Standards Act (FLSA) sets the federal minimum wage at $7.25 per hour and defines overtime as any time spent working after eight hours a day or forty hours a week. The FLSA requires employers to pay all their hourly, nonexempt workers one and one-half times their normal hourly rate for all overtime worked, but each state and city has their own labor laws and employers conducting business in the U.S. need to make sure they’re abiding by all relevant local and federal laws.

California labor law, for example, requires all employees working in the state to be paid double their normal hourly wage for all time spent working after twelve hours on the same day, as well as for all time spent working on the seventh consecutive day of work. Employers sometimes try to get around this by switching around their workweeks. If an employee works six days at the end of one workweek and then the first day of the next workweek, employers sometimes try to claim that exempts the employee from being paid double for that seventh day of work, even though the employee worked seven days in a row.

A class of current and former CVS pharmacists have filed a wage and hour lawsuit against the pharmacy for allegedly violating several labor laws. According to the lawsuit, CVS Pharmacy allegedly: failed to pay overtime; failed to provide accurate itemized wage statements; and conducted unfair business practices. The wage and hour lawsuit also filed claims for penalties under the Private Attorneys General Act.

It is common for wage and hour lawsuits to include allegations of unfair business practices by claiming that a business that does not properly compensate its workers is gaining an unfair advantage over competing companies who do properly compensate their employees. A company that illegally cheats its employees out of their earned wages can then take the extra money it is allegedly saving as profit or reinvest it back into the company.

The current class action wage and hour lawsuit only includes CVS pharmacists who worked in Region 60 in California. This is due to the fact that this class action is not the first wage and hour lawsuit with these types of allegations that CVS Pharmacy has faced and it has already paid out settlements to pharmacists in several other regions in California.

Despite facing multiple lawsuits from its employees with similar claims, CVS continues to insist it has not done anything illegal. It has decided to settle the class action lawsuit anyway for more than $2.9 million in order to avoid the hassle and expense of pursuing the legal dispute in a court of law.

The settlement will cover every pharmacist who works or worked for CVS in Region 60 in California and worked more than six consecutive days of work without the proper overtime compensation any time between November 6, 2009 and April 30, 2015. The amount each class member receives will vary depending on the number of workweeks in which they worked more than six days in a row without overtime pay in the class period.The Chicago overtime lawyers at the Chicago Overtime Law Center are investigating unpaid overtime claims against large retail chains such as Petsmart, Officemax, Staples, Smart & Final, Apple, Walgreen’s, CVS, Urban Outfitters, GAP, Rite-Way, Abercrombie & Fitch, Limited, Forever 21, Macy’s, Target, JC Penney’s, Lowes, Marshalls, TJ Max, Victoria’s Secret, Nieman Marcus, Saks Fifth Avenue, Best Buy, Home Depot, Apple, Best Buy, Sears, K Mart, J.C Penney, Walmart, Costco, PetSmart, REI and other retail chains for misclassifying employees as managers, erasing or altering time sheets or time records, pressuring workers not to report or record overtime, failing to pay for time spent on security checks, and otherwise failing to pay workers for overtime and other wages. If you are the victim this practice call us at one of our offices near Elk Grove Village and Carol Stream at (312) 869-4095 or contact us online.