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Pilot Travel Center Managers Set Their Sights on Overtime Pay

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Case ID: 3065 | Employment | 01/20/2004

A nationwide class/collective action has been filed in California against truck stop Giant, Pilot Travel Centers, LLC and its parent company, Pilot Corporation. The action is brought on behalf of all general managers, co-managers, operations managers, sales managers, guest service managers, and human resource managers who since December 11, 1999, in California and December 11, 2000, nationwide were denied overtime compensation by Pilot. The action is brought both under the federal Fair Labor Standards Act and the California labor and business professions codes and seeks back pay, liquidated damages and statutory penalties as well as declaratory and injunctive relief. The action is both a class action, for violations of California law, and a collective action under the federal Fair Labor Standards Act. Those residing outside of California that wish to be considered for the action must "opt-in" voluntarily to be considered a claimant. The managers have requested the court give notice to all potential claimants.

This case arises from what the managers contend is a misclassification of their status as employees. The managers assert that Pilot classified them as salaried employees, and thus exempt from receiving overtime compensation, when in fact, they performed services more akin to hourly employees that are not exempt from overtime compensation. The managers allege that under their contract, they were required to work a minimum of 50 hours a week. However, the managers assert that in the typical week their hours far exceeded 50. Pilot operates Pilot Travel Centers, which are truck stops/gas stations that are open to the general public 24 hours a day and seven days a week. The managers claim that although they are discouraged to pay their hourly employees overtime,
Pilot expects the managers to fill any gaps left by hourly employees. As a result, managers allegedly spend a minimum of 50% of their time on the job performing non-managerial tasks such as greeting and waiting on customers, retail selling, cashiering, cleaning and maintenance work, stocking and arranging, working the fuel desk, performing inventory, counting merchandise and filing in for workers that are out due to sickness or vacation or are on break. The managers contend that they are rarely allowed to take breaks, must take "working lunches" and are, in essence, nothing more than hourly employees with titles. Additionally, the managers claim that they have very little actual managerial authority. Pilot is a chain retail organization and all major decisions are made on a national level, leaving the managers to do little but implement company policy. Any deviations from company policy are allegedly met with discipline and possible termination or demotion.

Under both California and federal law, employers are required to pay all non-exempt employees a minimum of time and a half for all hours worked beyond 40 per week. The managers contend that under both California and federal law, the tasks they performed did not meet the definition of a manager, and that they were for these reasons not exempt from overtime compensation. The managers also contend that Pilot's conduct violated the California Business and Professions Code, alleging that Pilot's misclassification of its managers constitutes unlawful and unfair business acts. The managers claim that there are potentially as many as 500 to 1000 possible claimants in this action as Pilot operates businesses throughout the United States with over 240 individual retail outlets in operation. This case was originally filed in California state court and was removed by Pilot to California federal court.


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