Clothing Retailer Hit With $25M FLSA Suit Over OT Pay

Law360, Los Angeles (December 11, 2012, 9:35 PM EST) -- A $25 million collective action was filed Tuesday against Memphis-based clothing retailer City Gear LLC for allegedly classifying its managers as salary-based to avoid overtime payments but continuing to dock pay when the employees failed to work 40 hours per week.

The complaint, filed in the U.S. District Court for the Middle District of Tennessee on behalf of two named plaintiffs and those similarly situated, alleges that City Gear, known as Shelmar Retail Partners LLC until June, violated federal labor laws by withholding more than $25...
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