The parties have reached a $4.8+ million settlement in a class action against baking companies Interstate Brands Corporation and Continental Baking Company on behalf of all current and former employees of either company who were employed in sales positions and were not eligible to receive overtime pay regardless of hours worked, at any time between November 21, 1993, and April 30, 2003. The action alleged that the companies failed to pay their sales employees overtime compensation for work in excess of 40 hours per week as required by state and federal law. Persons eligible to take part in this settlement should contact the attorneys for the class as soon as possible.
The settlement class includes, but is not limited to, all workers who have held the following positions: Route Sales Person, Route Salesman, Route Sales Driver, Driver-Salesperson, and Route Sales Representative. A settlement fund has been established out of which eligible persons will be paid. To determine the amount of payment, divide the total number of days you worked during the between November 21, 1993, and April 30, 2003, by 30.4 and round the answer to the nearest whole number to get the number of months worked during the period. Each month worked equals one service credit.
Certain salespeople's service credits require adjustment. If you worked under a collective bargaining agreement between Interstate and Teamsters Locals 524, 839, 556, 760, and 670, you should multiply your service credits by 1.2 to get your total number of service credits in the settlement. These workers receive an adjustment because the two companies' time records have established that on average they worked longer workweeks than anyone else in the state.
The value of each service credit will be determined by dividing the net settlement fund by the total number of service credits that are claimed by the entire class of salespersons, including those credits that have been adjusted upward. The amount of each individual payment will then be determined by multiplying the value of a service credit by the number of credits that a claimant accrued. Two thirds of each payment that is disbursed will be designated as wages, and the remaining third as interest. Each award will be paid, less employee payroll deductions for federal, state, and local income tax withholdings, and a W-2 will be issued. A 1099 form will be issued to each claimant to account for the interest portion of the award. It is expected that settlement checks will be distributed around mid-September, 2003.
The settlement was given final approval in a court hearing on July 25, 2003.