Judge Rejects Settlement In Michaels Unit's OT Pay Case

Law360, New York (January 3, 2013, 4:54 PM EST) -- A California federal judge refused Wednesday to grant preliminary approval to an $800,000 settlement of a wage-and-hour class action against a subsidiary of arts-and-crafts retailer Michaels Stores Inc., saying the deal was an "obvious" violation of the Fair Labor Standards Act.

U.S. District Judge Saundra Brown Armstrong found that employee plaintiffs Jose Tijero and Amanda Godfrey's bid for class certification was insufficient and that the settlement they proposed required all 6,500 prospective class members to give up their FLSA claims against Aaron Brothers Inc. without first...
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