Family Dollar plans to settle with store managers on overtime

Reuters News

9/12/2012 8:39:28 AM - Reuters News

(Reuters) - Family Dollar Stores Inc said on Wednesday that it could pay up to $14 million to settle with a class of more than 1,700 store managers regarding their claims for overtime wages, and It plans to record a charge to cover the related costs.

The preliminary settlement with New York employees provides for a payment of up to $14 million. A finalized settlement would need court approval, and that process has not yet begun, the discount chain said.

Family Dollar plans to record a one-time charge in the fourth quarter to cover previously unplanned costs and expenses related to the litigation and settlement.

(Reporting by Jessica Wohl in New York; Editing by Gerald E. McCormick)