Fort Worth, Texas--RadioShack Corp. will pay $2.9 million to settle the unpaid overtime claims of 1,300 managers in California in one of the largest such agreements in the short history of the state's white-collar litigation wave. The managers filed a class-action overtime suit more than two years ago, contending that RadioShack had improperly exempted them from overtime eligibility. The company made no admission of wrongdoing in agreeing to the settlement but is working on a plan for court approval to change the way it pays managers.
Under California's unique wage law, workers classified as managers are eligible for overtime pay at time-and-a-half if they spend more than 50 percent of their time on non-supervisory tasks such as running a cash register, flipping burgers or unloading merchandise. -Los Angeles Times