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Rite-Aid Overtime Lawsuit: How to prevent further lawsuits due to misclassifaction of workers and overtime pay issues that affec - Research Paper Example

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Name: Institution: Course: Instructor: Date: Rite Aid Overtime Lawsuit In a lawsuit that involved overtime and misclassification of workers, Rite Aid incurred an amount of money that was above 20 million dollars. This followed their failure to make considerations for the needs of the employees who worked for them past their normal time without compensation…
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Rite-Aid Overtime Lawsuit: How to prevent further lawsuits due to misclassifaction of workers and overtime pay issues that affec
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Download file to see previous pages According to the federal wage and hour laws, all non-exempted employees are entitled to a minimum wage and overtime wage for all the hours they the work beyond the stipulated 4o hours a week, unless there are exemptions. In this respect, the exemptions mean that a person falls under the category of a salaried employee and should be treated according to the others that are employed on permanent bases. In their misclassification, Rite Aid categorized its assistant managers as salary white collar exempts who did not receive who could work like any other employees in the company and their title was not anything. The situation of assistant managers working as exempts prevailed for some time until they decided to challenge the model of working of the company and filed a case against it. This followed the realization that they deserved a minimum pay wage and the pay for extra hours they worked for Rite Aid Corporation without compensation. According to the federal wage and hour laws, Rite Aid ought to pay those employees three times the money they ought to have paid them if the company treated them as exempt workers. The cases proceeded until on January 10th, 2013, Rite Aid announced that it has accepted to give $20.9 million in payment to misclassified workers who had worked for extra hours without payment and without receiving any favor from the company. Rite Aid is a drugstore chain that capitalizes on sale and distribution of drugs in the US and other parts of the world and has a broad market to through its large base in the market. Having started it operations as a private company in 1962 with the name Thrif D Discount Center, the company underwent growth and expansion to adopt its current name first in 1968 and it became public enterprise. Since its establishment as public company, it has thrived in different conditions and surviving in difficult economic stresses and emerging as a top company in different situations. The company is the largest drugstore chain on the East Coast and the third largest in US and is also among the category of fortune 500 companies that have performed well and are the largest in the world and it continues to expand. Rite Aid Corporation has its headquarters in East Pennsboro in Pennsylvania and it distributes its drugs to different states within America and offer health services. This is a shift from its original location in Scranton in Pennsylvania where the company was established and based its operation in 1962 as health and beauty store, which had no part for pharmacy. With time, the company expanded to include a pharmacy in its operations and developed to a great chain store, which by the end of the first three years had expanded to five different states in the northeast of Pennsylvania. The company entered the America Stock Market in 1968 and in 1970, it entered to the New York Stock Market as a large public company and in those times, it had a lot of potential to grow and reach many places. Through its gradual development, the company was the 100th in the Fortune 500 companies in 2011, which indicates that it has maintained its growth overtime since its establishment. To enhance its growth and make its operations effective, the company went into joint venture with another market and made to enhance its market control and to ...Download file to see next pagesRead More
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