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Lowes Employees Seek Overtime Compensation

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Case ID: 3168 | Employment | 02/17/2004

A statewide collective action has been filed in Alabama against Lowes Companies, Inc. The action is brought on behalf of all hourly and salaried employees of Lowes that have worked beyond 40 hours per week without proper overtime compensation. The action is brought under the federal Fair Labor Standards Act and seeks statutory and liquidated damages as well as injunctive and declaratory relief. As a collective action, each potential claimant is required to "opt-in" in order to be considered a member of the class. The employees have requested that the court issue notice to all potential claimants.

According to employees, Lowes, which is the nation's second largest home improvement retailer, has intentionally and systematically denied both hourly and salaried employees proper overtime compensation. The employees allege that it is corporate policy to prevent employees from receiving overtime. The employees assert that there are several methods in which Lowes implements this policy. Initially, employees claim that it is Lowes policy to "lock in" store staff at the end of each workday. According to the employees, the store manager locks the doors when the store closes and requires employees to clock out. At that point, employees allege, the manager checks over the store and releases employees from each department. However, the employees claim, the store manager does not allow the employees to leave until the entire store is checked over. Sometimes this can take as much as 30 to 45 minutes, and the employees assert that they are off of the clock throughout this entire period. Secondly, the employees claim, all persons working in Lowes stores are required to wear safety attire and aprons. These articles of clothing must be put-on and removed at the store and are kept in employees’ lockers. The employees claim that they must put on and remove this clothing before and after they clock in or out. They claim that this process takes 10 to 15 minutes daily and they are not compensated for the time it takes to prepare for work and for leaving work.

Under the Fair Labor Standards Act, all hourly employees are entitled to compensation at the rate of time and a half for all hours worked beyond 40 per week. Additionally, salaried employees that are employed under a "fluctuating work week" schedule are entitled to overtime compensation if their work week exceeds in hours those agreed to. The salaried employees claim that they were told they would work a 48 hour fluctuating work week, but were never informed as to the details of this arrangement. Accordingly, they claim that they are frequently called upon to work well in excess of the 48 hours Lowes contracted
with them to work. Thus, like the hourly employees, the salaried employees claim that they are entitled to overtime compensation for all hours worked in excess of the terms of their contract.


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