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CONFIDENTIAL

Mar. 22, 2001

Employment Law
Class Action
Overtime Compensation

Confidential

Settlement –  $11,000,000

Court

San Diego Superior


Attorneys

Plaintiff

Janelle Carney
(Law Office of Joseph Antonelli)

Joseph G. Antonelli

William E. Fitzharris Jr.

Michael A. Conger
(Law Office of Michael A. Conger)

Kevin T. Barnes
(Law Offices of Kevin T. Barnes)

Matthew A. Kaufman
(Kaufman Law Firm)


Defendant

Anthony Sinclitico

Mary Dannelley

Yvonne Dutton


Facts

This case involved three lawsuits which were consolidated by the Judicial Council. The plaintiffs were class
members who consisted of store managers and senior assistant store managers employed by the defendant.
The plaintiffs alleged that, although they were given the title of store manager and senior assistant store
manager, they were not given duties which allowed them to have sufficient judgment and independent
discretion. Accordingly, the plaintiffs claimed that they were truly non-exempt employees. The class members
in these positions asserted that they were not compensated for hours in excess of eight hours per day or 40
hours per week.
This matter proceeded to a Class Certification hearing which was granted on Nov. 6, 1999. Hon. Judge
Thomas Murphy certified the case as a Class Action with two subclasses - store managers and senior assistant
store managers.
The defendant unsuccessfully prosecuted writs of Judge MurphyÆs order certifying the case as a class action in
both the Court of Appeals, Fourth Appellate District and the California Supreme Court. Neither court granted
CSK the relief it sought.

Settlement Discussions

The court granted preliminary approval of the class action settlement on Oct. 6, 2000. Before the final permanent approval on Jan. 16, 2001, defendant reclassified the store managers as non- exempt positions and now compensates these employees for all hours in excess of 40 hours per week. The senior assistant store manager had been reclassified as non-exempt employees on July 28, 1997.

Damages

The class members claimed loss of earnings as a result of defendantsÆ refusal to pay overtime wages to class members. Each class member was claiming the premium - overtime payment for all hours in excess of eight hours per day or in excess of 40 hours per week.


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