A statewide collective action has been filed in Florida against DDS Restaurant Corporation, Inc, who operate as Bagel Twins. The action is brought on behalf of all current and former employees, who since March 2001, were not paid proper statutory overtime for all hours worked beyond 40 per week. The action is brought under the federal Fair Labor Standards Act and seeks statutory and liquidated damages as well as declaratory and injunctive relief. As a collective action, all potential claimants are required to "opt-in" to the action in order to be considered part of the class. The employees have requested that the court issue notice to all potential class members.

According to employees, Bagel Twins has engaged in a willful and intentional course of action to defraud them of proper overtime compensation. The employees claim that Bagel Twins frequently requires them to work well in excess of 40 hours per week. However, according to employees, the company has no provisions in place to properly compensate employees for overtime for hours worked in excess of 40 per week. Under the Fair Labor Standards Act, all hourly "non-exempt" employees are entitled to a minimum of time and a half for all hours worked in excess of 40 per week. "Non-exempt" employees are generally those who work on an hourly basis and do not have managerial or executive responsibility. The employees, who are hourly laborers, claim that they are "non-exempt" and therefore entitled to receive overtime compensation for all hours worked beyond 40 per week. The employees also claim that because Bagel Twins' refusal to pay overtime was willful and intentional, they are entitled to an equal amount of liquidated damages.