According to the managers, Radioshack has engaged in a willful and intentional course of action to defraud them of proper overtime compensation. The managers claim that Radioshack requires them to work well in excess of 40 hours per week, generally in the range of nine to eleven hours a day Monday through Friday plus additional hours on the weekend. However, according to the managers, the company does not compensate them for overtime hours worked in excess of 40 per week. Under the Fair Labor Standards Act, all "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 that work on an hourly basis and do not have managerial or executive responsibility.

In this case, the managers claim that Radioshack has improperly classified them as "exempt" employees because they do not perform true managerial functions. According to the managers, they are glorified sales associates with little or no actual authority. The managers claim that it is corporate policy that on an average nine hour day, seven of those hours are spent making sales. The remaining hours are generally reserved for duties such as stocking merchandise, taking inventory, cleaning the store and other "non-managerial" tasks.

In addition, the managers allege that Radioshack has very strict corporate policies and that the company controls every aspect of operations in the store, leaving the store manager with no responsibility. The managers assert that Radioshack's corporate policy for their "managers" is to maximize sales and minimize payroll. The managers claim that they are actually "non-exempt" employees under the definition contained in the Fair Labor Standards Act and that they are indeed entitled to overtime compensation for all hours worked in excess of 40 per week. The managers also claim that because Radioshack's labor violations were willful and intentional, they are entitled to liquidated damages in this case.