Jimmy John's Agrees to Pay $1.8M to Resolve Overtime Pay Dispute
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In recent news, Jimmy John’s agreed to pay $1.8 million to settle wage and hour claims. Employees brought form wage and hour claims against Jimmy Johns under the Fair Labor Standards Act.
Details About the Case: Jimmy John’s Overtime Litig., N.D. Ill., 2/15/21
Case Numbers: 14-CV-5509, 15-CV-1681 & 15-CV-6010
Court: Northern District of Illinois Eastern Division
The Plaintiffs in the Wage and Hour Claims Case:
Sixty-six assistant managers from various Jimmy John’s corporate-owned locations that opted into the FLSA collective will receive a settlement check from a $272,500 fund. Additionally, more than 500 Jimmy John’s managers at different independent Jimmy John’s franchisees will receive gift cards totaling $300. The Jimmy John’s gift cards are transferable and can be resold for cash. Two plaintiffs initially filed the suit in July 2014, alleging assistant store managers were misclassified, leaving them exempt from overtime pay. In 2015, the lawsuit became a collective action after numerous other suits were filed. Plaintiffs involved in the case were employed at various Jimmy Johns franchises nationwide, and all allege they were cheated out of overtime pay due to misclassification.
Seeking a Settlement to Resolve Misclassification, Wage and Hour, and Overtime Pay Claims:
The plaintiffs’ counsel submitted a motion o Feb. 15th to Judge Charles P. Kocoras of the U.S. District Court for the Northern District of Illinois seeking $1.1 million in attorneys’ fees, $250,000 in litigation costs, and $2,500 service award for each named plaintiff in the case. The settlement proposal was intended to resolve three consolidated collective actions alleging FLSA violations stemming from the alleged misclassification.
If you have questions about California labor law violations or how employment law protects you against labor law violations, please get in touch with Blumenthal Nordrehaug Bhowmik DeBlouw LLP. Experienced employment law attorneys are ready to assist you in various law firm offices located in San Diego, San Francisco, Sacramento, Los Angeles, Riverside, and Chicago.
