RadioShack Shells Out $700K To Settle OT Class Action

By Allissa Wickham (December 17, 2014, 7:20 PM EST) -- RadioShack Corp. agreed to pay $700,000 on Tuesday to settle a class action accusing the electronics retailer of depriving Pennsylvania employees of overtime pay with a "fluctuating workweek" compensation method, roughly five months after the system was found to be in violation of the state's minimum wage act.

Under the settlement agreement, RadioShack will pay $513,000 to class members and $185,000 to class counsel Winebrake & Santillo LLC. Lead plaintiff David Verderame will also receive a service award of $2,000, the deal said.

Verderame, a former store manager at a RadioShack in Pennsdale, Pennsylvania, initially sued the company in the Philadelphia...

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