A national class action has been filed against rent-to-own company Rent-Way, Inc. on behalf of current and former employees who allege that the company failed to pay them overtime, in violation of the federal Fair Labor Standards Act. The action seeks unspecified compensatory and punitive damages for up to three years of back overtime pay per worker. Qualified employees should join the action as soon as possible to prevent forfeiture of benefits because of the operation of federal statutory deadlines.

As assistant store managers for Rent-Way, named plaintiffs Justin Badgett and John P. Leasha allegedly worked more than 50 hours each week on a routine basis. The action alleges that the company failed to pay the two men and other class members for hours worked past 50 hours per week and paid a normal rate--instead of the time-and-a-half required by law--for the hours they worked beyond 40 hours.

The action contends that Rent-Way instructed store managers to reduce the number of hours that nonsalaried workers logged to a maximum of 50 hours per week, thereby skimping out on paying employees who work over 50 hours per week.

Under the Fair Labor Standards Act, employees are generally not entitled to their lost overtime pay for hours they worked more than two, or in some cases three, years earlier than the filing date of the action that seeks repayment of the lost overtime pay. Once you join this action, you can only collect lost wages for two or three years prior to that date, nothing more. To stop this clock from running out on your claims and to prevent yourself from losing any more money, you should join the action as soon as possible.

In March 2003, Rent-Way reached a $25 million settlement agreement with shareholders in a securities class action. The stockholders accused the company of manipulating its books and inflating earnings.