A Pittsburgh law firm filed a class action lawsuit Friday alleging that Rent-Way Inc. cut costs by withholding overtime pay from employees.
Harry Kunselman, a partner with Strassburger, McKenna, Gutnick & Potter, said the lawsuit claims store managers for Erie-based Rent-Way routinely failed to pay employees overtime beyond 50 hours in a given work week. The lawsuit was filed in the U.S. District Court for Western Pennsylvania.
"It's pretty egregious," Kunselman said. "We filed the case because we believe it was not just an isolated incident, but a widespread practice."
A spokesman for publicly traded Rent-Way could not be reached for comment Tuesday.
The lawsuit claims Rent-Way downwardly adjusted the number of logged employee hours. Kunselman said the exact number of litigants in the lawsuit and the damages being sought will be difficult to determine until the discovery portion of the legal proceedings is completed.
Rent-Way is a rent-to-own retailer with 750 stores in 33 states. Strassburger, McKenna, Gutnick & Potter is the attorney of record for the Tribune-Review Publishing Co.
