Calif. Court Upholds Costco Salary Calculation Win

Law360, New York (February 11, 2011, 6:35 PM EST) -- A California appeals court has affirmed Costco Wholesale Corp. did not violate state labor law when it recalculated certain managers’ salaries based on a 45-hour work week following a policy change to make them eligible for overtime.

The Court of Appeal of the State of California’s Second Appellate District issued an unpublished ruling on Thursday upholding the judgment of a lower court in a case brought by Terry Head and other so-called ancillary managers of the retailer contesting the company’s move.

After reclassifying the managers as...
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