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Target Sued by Warehouse Group Leaders for Unpaid Overtime

Some workers in Target’s warehouses have claimed they aren’t compensated for all hours worked.

That’s according to a lawsuit pending in the Northern District of New York federal court, which accuses the retail giant of misclassifying group leaders as exempt from overtime pay requirements.

A statement released Tuesday by the plaintiffs’ legal team of Outten & Golden LLP and Louis Ginsberg Law Offices, P.C. is seeking to have the case certified as a class action in order to recover unpaid overtime, liquidated damages and penalties.

“This lawsuit seeks fair compensation for the many Target group leaders who have worked long hours to make sure that the products we enjoy from Target get to Target’s many stores throughout the country,” Jahan Sagafi of Outten & Golden said.

Louis Ginsberg continued, “These workers in the warehouses deserve to get paid overtime when they sacrifice family time to do extra work.”

The U.S. Department of Labor requires employers to pay employees who work overtime—defined by the Fair Labor Standards Act as hours worked in excess of 40 in a work week—at least one and one-half times their regular rate. However, employees who perform certain duties (read: work directly related to the management or general business operations of the employer) and are paid on a salary basis of at least $455 per week are exempt from overtime rules.

This dispute is centered on how Target classifies its warehouse group leaders. As per a current job posting for a distribution operations manager on the retailer’s website, a group leader oversees the daily operation of assigned departments by leading and coordinating the activities of 20 to 40 team members, as well as the ability to work non-rotational shifts.

The job description doesn’t include information about compensation (neither annual salary nor hourly wage), but notes that most facilities operate 24-7. Data compiled by Glassdoor states that Target’s warehouse workers are paid an average of $18.23 per hour.

A website has been set up by the plaintiffs’ counsel to allow witnesses and current and former employees to report their experiences.