You are here
MATTHEWS, N.C. -- Discount chain Family Dollar Stores, Inc. here has been hit with a higher penalty in a heated labor case. A federal judge in Alabama has increased the amount the retailer must pay to $33.2 million for allegedly classifying certain employees as salaried managers and making them ineligible for overtime pay.
Last month, the jury hearing the case said the chain would have to pay $19.1 million, but the judge increased the penalty.
The jury's verdict came in a second trial in the case. The case originally went to court last year, but ended in a mistrial.
Family Dollar has said it will appeal the decision.
In the company's second fiscal quarter, which ended Feb. 25, the company incurred a litigation charge of $45 million, or 18 cents per diluted share, associated with the case.