Dick's Sporting Goods Inc. of Findlay has agreed to pay up to $15 million to settle federal and state lawsuits claiming the company violated wage and labor laws affecting 190,000 current and former workers, according to the company and court documents filed yesterday.
The settlement resolves a class-action lawsuit filed in May 2005 in federal court in Rochester, N.Y. It also settled related wage and hour class-action lawsuits filed in 22 states, including Pennsylvania, West Virginia and Ohio that are pending against the company and five individual defendants.
The lawsuit named the former Gaylan's Trading Co. Inc. of Indianapolis, which Dick's acquired in 2004, as well as CEO Edward Stack as defendants.
The settlement of the Rochester lawsuit, filed by 68 Dick's hourly employees, must be approved by federal court in Rochester at a hearing yet to be scheduled. As part of the settlement, those suing Dick's agreed to drop lawsuits filed in the 22 state courts.
The total amount of the claims depends on the number of claims submitted by employees. The settlement covers claims under laws of 36 states.
The lawsuit filed in Rochester claims that Dick's violated New York state labor laws when supervisors made employees work through their lunch hour, or interrupted their lunch hour, without compensation. The suit claimed Dick's supervisors permitted employees to work more than 40 hours one week, then let them take time off the following week or pay them their regular hourly rates in the following week rather than at their overtime rates.
Spokesman William J. Colombo, vice chairman of Dick's board of directors and one of the defendants in the lawsuit, could not be reached for comment.
The settlement and related fees will result in a pre-tax charge of about $15.5 million against Dick's profits, which will be recorded in the fourth quarter.
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