Check-Cashing Firm Agrees To Pay $1.2M To Settle OT Claims

Law360 (October 8, 2020, 7:00 PM EDT) -- A New York City check-cashing chain and its workers on Thursday secured a federal magistrate judge's approval of a $1.2 million deal to settle allegations of employee misclassification and shorted pay.

U.S. Magistrate Judge Steven M. Gold recommended approving the settlement in a suit three employees brought against Pay-O-Matic, alleging that it illegally misclassified employees as exempt from overtime and required them to be on call outside of work hours. The deal covers two subclasses of thousands of employees.

"I respectfully recommend that preliminary approval of the agreement be granted because the court, upon final approval, will likely find that the...

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