Despite Being Valued at $4 Billion, Belk Not Paying Employee Overtime
Over the past few weeks, there have been several reports that North Carolina-based retailer Belk, the largest family-owned and operated department store chain in the country, has hired Goldman Sachs Group Inc. to value the company and to “evaluate strategic alternatives, including a potential sale.”
According to these reports, Goldman Sachs may have valued the department store company, with its nearly 300 stores in 16 Southern states, at as much as $4 billion, and listed such massive retailers as Macy’s, Nordstrom and Bon-Ton Stores as potential buyers. Yet, even with so much wealth apparently available to them, they can’t seem to find the money needed to pay their Loss Prevention Managers and Sales Team Leaders for all of the overtime hours they worked.
As you may recall, we are working on a lawsuit in which we are investigating Belk for it’s failure to compensate its Loss Prevention Managers for overtime they worked and their failure to remain in compliance with the Fair Labor Standards Act (FLSA). During our investigation, we uncovered that Belk’s Sales Team Leaders were also not paid appropriate overtime.
According to the FLSA, all employees must be compensated at 1.5 times their regular rate of pay for any hours over 40 worked in a week, unless they meet very strict guidelines applicable only to exempt employees. Unfortunately, a number of companies continue to misclassify Loss Prevention Managers and Sales Team Leaders as exempt and use that classification to deny them overtime wages that are due them.
It is common for workers to believe that an employer can merely pay them a salary and get away with not paying them for overtime worked, but that is not necessarily true under the FLSA. The definition of an exempt employee is based on the worker’s job, and not their compensation or title.
Based on our investigation, Loss Prevention Managers and Sales Team Leaders are not correctly classified as exempt employees.
Our investigation of Belk isn’t exactly unprecedented. Last year, Sears agreed to pay Loss Prevention Managers working for Kmart stores $5 million in compensation for lost overtime for the same sort of misclassification. BJ’s Wholesale Club, Inc. settled a similar class-action lawsuit for more than $3 million a year earlier and Lowe’s also settled two similar cases in 2011 for more than $9 million. Therefore, we have good reason to conduct our investigation of Loss Prevention Managers and Sales Team Leaders who worked for Belk, who may have been wrongly denied overtime pay.
Lawyers To Help Workers Affected By Belk Not Paying Employee Overtime
If you currently work as a Loss Prevention Manager or Sales Team Leader at Belk or any other company during the past three years and weren’t paid overtime compensation, our experienced legal counsel may be able to help you recover your valuable overtime wages. Please contact us for a free wage and hour consultation.