A national collective action has been filed in Georgia against computer retail giant CompUSA, Inc. The action is brought on behalf of all commercial sales associates who were hired by CompUSA prior to February, 2004. The action is brought under the federal Fair Labor Standards Act and seeks back pay and liquidated damages as well as injunctive and declaratory relief. As a collective action all potential claimants are required to voluntarily "opt-in" to the action in order to be considered a member of the class. The associates have requested that the court issue notice to all potential claimants.
According to the associates, CompUSA changed its corporate policy in February, 2004, regarding the status of Commercial Sales Associates. Prior to February, 2004, the associates were classified as "exempt" employees and were not paid overtime compensation. However, the associates claim that they were never "exempt" employees and are entitled to overtime compensation for all hours worked over 40 per week prior to the February, 2004, re-classification. Under the Fair Labor Standards Act "non-exempt" employees are generally those that do not exercise any managerial or executive authority. According to the a associates, their roles were limited to answering the telephone in the commercial sales department, making contact with or receiving orders from businesses, locating suppliers if items were on back order and covering the sales floor if additional associates were needed. The associates allege that they had no authority over the hiring and/or firing of employees, supervising other employees or setting prices for products in the store. The associates assert that they were paid on a salaried basis and received minimal commission for their sales. The associates also claim that they were required to work overtime on a regular basis, often as much as 60 to 65 hours per week.
Under the Fair Labor Standards Act, all employees that are "non-exempt" are entitled to pay at the rate of time and a half for all hours worked beyond 40 per week. The associates allege that the re-classification of their status as "non-exempt" in February, 2004, establishes the fact that they have always been "non-exempt" employees to overtime compensation under the Fair Labor Standards Act. The associates further allege that because CompUSA's denial of overtime compensation prior to February, 2004 was willful, they are entitled to liquidated damages in addition to statutory damages and back pay.