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Target Overtime Pay for Pennsylvania Warehouse Employees Class Action

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Target Name and Bullseye on Building

This class action is yet another alleging that an employer did not properly calculate or pay overtime for its hourly employees. This time, the employer is Target Corporation. The complaint alleges that the problem is both how the time-and-a-half overtime rate is calculated and the requirement that employees perform off-the-clock duties. It claims violations of both the federal Fair Labor Standards Act (FLSA) and the Pennsylvania Minimum Wage Act (PMWA). 

Two classes have been proposed for this action.

  • The FLSA Collective Class is all persons now or formerly employed as hourly employees of Target at one of its distribution centers who are or were subject to the pay practices and policies described in this case, at any point between June 26, 2016 and the present.
  • The PMWA Class is all persons now or formerly employed as hourly employees of Target at one of its distribution centers in Pennsylvania who are or were subject to the pay practices and policies described in this case, at any point between June 26, 2016 and the present.

Plaintiff Travis Atherton worked for Target in Pennsylvania from August 2016 to November 2019 as a Warehouse Associate. Target considered him a non-exempt, hourly employee who was entitled to overtime pay under both the FLSA and the PMWA.

Workers’ overtime pay rates are calculated from their regular pay rates. Atherton had a base rate of pay plus other kinds of pay, including shift differentials and bonuses. In such cases, the law requires that employers use a “weighted average” to calculate the overtime pay, so that the other kinds of payments can be taken into consideration. The complaint alleges that Target did not do this; it says Target excluded the other kinds of pay and did not use a weighted average, so that Atherton’s overtime rate was lower than it should be. 

Also, Atherton says he accumulated off-the-clock time for which he was not paid. This came about because at least once a month a security guard checks each employee leaving the facility. The time clocks are centrally located, the complaint says, which means that after clocking out, employees spend unpaid time walking to the exits and then being searched. 

The complaint asks that Target be forbidden from continuing these practices. It also asks that Atherton and other class members be compensated for the overtime hours they were not properly paid for and that they be awarded damages, attorneys’ fees and costs, and “all other equitable and legal relief as the Court deems appropriate.”

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