$287,500 Settlement in Fair Labor Standards Act Collection Action

This case involved the mandatory off-the-clock bank deposits made on behalf of the employer.

After over two years of hotly contested litigation in Petty v. Russell Cellular, Tittle & Perlmuter successfully finalized and settled a Fair Labor Standards Act collective action on behalf of 390 current and former full-time employees of a Verizon Wireless retailer with over 250 locations nationwide. These employees were required to make nightly, off-the-clock bank deposits of any cash payments received during their shifts. Since the bank deposits often took these employees over 40 hours in a workweek, the federal Fair Labor Standards Act mandates that the employees be compensated at a rate of one-and-a-half times the employee’s regular rate of pay for time spent making those deposits. However, these employees were deprived of any compensation for their time spent on bank deposits.

We filed suit in November 2013, and on March 28, 2014, the case was conditionally certified as a collective action. On January 22, 2016, Judge James Graham, in the United States District Court for the Southern District of Ohio, approved a settlement which provides for payment of back wages to all affected employees who opted into the case. The employer’s records did not contain information on the amount of time that each deposit took. However, according to records that were provided and calculations by the parties, the settlement provides for payment in full – or very nearly in full – for each of the 390 opt-ins.

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