Burlington Settles Assistant Store Manager Overtime Claims for $5.2 Million

Case Overview: Burlington has reached a $5.2 million settlement in a class action lawsuit alleging it denied overtime pay to assistant store managers.

Consumers Affected: Current and former assistant store managers at Burlington.

Court: U.S. District Court for the District of New Jersey

Burlington Stores Inc. has reached a $5.2 million settlement to resolve allegations that assistant store managers were misclassified as exempt employees and denied overtime pay. The agreement, which covers over 800 current and former workers, received final approval from a federal judge in New Jersey.

Burlington Accused of Denying Overtime Pay to Assistant Store Managers

The settlement funds will be distributed to participating collective members based on their overtime hours recorded in Burlington's timekeeping system. After deducting legal fees, administrative costs, and service awards, the remaining amount will be divided proportionally among eligible participants. This distribution method accounts for the overtime hours worked by each assistant store manager during the relevant period.

The lawsuit alleged that Burlington improperly classified assistant managers as exempt from overtime requirements, despite their involvement in manual tasks such as stocking shelves, operating cash registers, and maintaining displays. Plaintiffs argued that their primary duties did not qualify for exemption under federal labor laws.

Court Approval and Mediation Efforts

The $5.2 million settlement marks a revised agreement after an earlier proposed settlement was denied without prejudice. In rejecting the initial proposal, the court requested additional information to confirm that the plaintiffs were "similarly situated" as required under the Fair Labor Standards Act (FLSA). Following further mediation and negotiation, the parties submitted the revised agreement, which the court found to be "fair and reasonable."

Magistrate Judge Ann Marie Donio of the U.S. District Court for the District of New Jersey issued the final order approving the settlement. The decision noted that the settlement amount provides a meaningful resolution for collective members without prolonged litigation.

Background of the Claims

The assistant store managers involved in the case claimed they were regularly required to work more than 40 hours per week without receiving overtime pay. According to the lawsuit, their job responsibilities included significant manual labor that did not align with exempt duties under the FLSA. Plaintiffs argued that Burlington's classification practices violated labor laws and deprived them of fair compensation for their time.

Assistant managers asserted that they were expected to perform tasks typically assigned to hourly employees, such as unloading shipments, assisting customers, and maintaining store cleanliness. These responsibilities, they argued, outweighed any managerial duties and rendered them eligible for overtime.

Burlington’s Previous Lawsuits Over Labor Practices

This settlement is not the first time Burlington has faced allegations related to overtime pay. In 2022, the company agreed to pay $11 million to resolve a nationwide class action involving over 1,700 assistant store managers. That lawsuit made similar claims, asserting that Burlington failed to provide overtime pay despite requiring assistant managers to perform extensive manual labor while working beyond 40 hours per week.

Additionally, Burlington faced a separate class action lawsuit in 2024 over its use of spy pixels to track customer emails in Arizona. While unrelated to labor laws, these cases highlight a pattern of legal challenges faced by the retailer in recent years.

Next Steps for Participants

Members of the collective will receive notifications outlining their individual settlement amounts and instructions for claiming their payments. Those who opt in will receive their share of the settlement once all administrative processes are complete. Payments will be distributed according to the terms approved by the court.

Case Details

• Lawsuit: Payton-Fernandez v. Burlington Stores, Inc. et al
• Case Number: 1:22-cv-00608
• Court: U.S. District Court for the District of New Jersey

Are you a current or former Burlington assistant store manager? Share your thoughts on the settlement in the comments below.